Governance Systems, Business and Marketing Plans for Setting

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


Consultant’s Report Feb 2007 2



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



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



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.



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



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



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.



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



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.



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.

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

STSC Partnership Executive Board–

Four way multi-stakeholder component

And four way regional representation

12 seats

STSC Temporary Steering Committee covering

global regions

STSC Board of Directors

12

Executive Director and Program Staff

7-13

STSC Stakeholder Council

32-40

STSC Global

Knowledge Network

on Sustainable

Tourism Certification

Members Organisation

Knowledge Network Phase 2007

0 Partnership Phase 2007 - 2008

Accreditation Phase 2009 - 2012

Development Officer

Figure 1. Three-phased Development of the STSC Core Governance Body & Staff



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



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

STSC Self sufficiency Projected Income

INCOME Estimates of End-Users US$ STSC Members 207 227 250 275 303 249669Training Events 1049 1154 1269 1396 1536 383933Number of Accreditations 6 4 4 2 2 4,000Accreditation renewals 28 30 32 32 32 32,000Trademark Marketing Fees 490 539 593 652 717 591454 A Total Income 821423 903565 993922 1093314 1261056 1,261,056EXPENDITURE Staff costs 721,770 650,650 652,602 654,560 656,523 656,523Legal, Technical, Design 468,000 351000 352,053 353,109 354,168 354,168Travel & Events 328,000 246000 184500 185,054 185,609 185,609Office Costs 48,400 48,400 48,545 48,691 48,837 48,837B 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

Minimum & Maximum Funding Requirements

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1 2 3 4 5 6

STSC Phases years 1 to 6 (2007 -2012)

US

Dol

lars

Income from Services

Total Costs

Minumum FundingRequirementMaximum FundingRequirementRecommended FundingLevelLinear (MinumumFunding Requirement)Linear (Maximum FundingRequirement)Linear (RecommendedFunding Level)

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

Annual Breakdown



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

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.

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

Breakeven Projection

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Year of Operation 2007 -2017

US$

Revenue from Services

Minimum Funding Projection

Total Cost

Maximum Funding

Revenue from Services 5,000 70,000 113,542 445,052 813,620 1,202,188 821,423 903,565 993,922 1,093,314 1,261,056

Minimum Funding Projection 261,700 380,400 1,278,658 950,000 752,549 1,226,060 777,423 428,316 283,316 191,590 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 1,241,413 1,245,137

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 1,241,413 1,245,137

1 2 3 4 5 6 7 8 9 10 11



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.



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



[

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 …’

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

Consultant’s Report Dec 2006 18

Section A

A Working Vision of a Sustainable

Tourism Stewardship

Council

A Vision for Setting Up

and Running the Sustainable Tourism Stewardship Council



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 Knowledge Network

Destination Landscapes

Tourism Sector Market place

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

Certification points

Business to business links

Business to Consumer links

Americas Europe Asia – Pacific Africa



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.



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



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.



Figure A 2. STSC Governance Structure and Function – Satellite View

STSC Board of Directors 12

STSC Training

and Support Program

STSC-contracted accreditation body/ies

STSC Marketing Program

STSC International

Standards Program

Executive Director and

Program Staff 7-13

STSC Stakeholder

Council 32- 40

- STSC International Membership - Stakeholders from a Public Sector, NGOs, Certification bodies and

Tourism Businesses Global Knowledge Network

‘STSC-accredited’ certification bodies

‘STSC-accredited, certified tourism service providers

STSC-trained service

providers

STSC Accreditation

Program

STSC-endorsed training bodies

STSC technical working groups



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



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



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.



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.




12 seats

STSC Temporary Steering Committee covering

global regions

STSC Board of Directors

12


7-13


32-40

STSC Global

Knowledge Network

on Sustainable




0 Partnership Phase 2007 - 2008


Development Officer

Figure A 3. Three-phased Development of the STSC Core Governance Body & Staff



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.] The aim of an STSC capacity-building program is to establish the fully functional STSC. This can be achieved in small steps if necessary, depending on funding success. Seed funding or in-kind support for a project coordinator is the first step, in parallel with a small working group scouting for and dealing with specific funding opportunities across the global regions. This then will lay the foundation for full funding for a secretariat and project teams, preferably housed in a credible international institution.

Figure A 4. Graph of Projected Income and Expenditures 2007 - 2012

Human and Capital Resource needs of the STSC Readers need to examine the tables and graphs in section 2 ch 5 of this report to gain a full picture of the human and capital resources required by the STSC. The recommended governance process involves running a membership organisation with a stakeholder council of 32-40 representatives, plus a board of 12 directors. The suggested staff team consists of an Executive Director, Communications/Resource Development Officer, Personal Assistant, IT Officer, Finance Officer, a Standards & Accreditation Officer, Marketing Director and Training Director, plus interns. Travel and Meetings budgets make up the main expenses outside of salaries, with the average annual cost of the project estimated to be US $1,238,463. However it is more realistic to look at yearly minimum and maximum levels of funding (See graph figure A4), in which an annual funding line can be plotted to ensure financial capacity is guaranteed year on year for cash flow purposes. 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.


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1 2 3 4 5 6


US

Dol

lars


Total Costs



Total Costs 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259




Annual Breakdown



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

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


INCOME Estimates of End-Users US$ STSC Members 207 227 250 275 303 249669Training Events 1049 1154 1269 1396 1536 383933Number of Accreditations 6 4 4 2 2 4,000Accreditation renewals 28 30 32 32 32 32,000Trademark Marketing Fees 490 539 593 652 717 591454 A Total Income 821423 903565 993922 1093314 1261056 1,261,056EXPENDITURE Staff costs 721,770 650,650 652,602 654,560 656,523 656,523Legal, Technical, Design 468,000 351000 352,053 353,109 354,168 354,168 328,000 246000 184500 185,054 185,609 185,609Office Costs 48,400 48,400 48,545 48,691 48,837 48,837B 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


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000


US$



Total Cost

Maximum Funding



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 1,241,413 1,245,137

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 1,241,413 1,245,137

1 2 3 4 5 6 7 8 9 10 11



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).



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 &

Pacific Europe Global

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



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 …’



Section B

Specific Characteristics

of the STSC

3. Specific Operational, Administrative and

Financial Implications of the Implementation

Strategy

2. An

Implementation Strategy for the Establishment

of the STSC

4. A Business Model of Financial Sustainability

Cost & Revenue Accounts 2007-2012

1. The Global Organization Framework

8. Conclusion

5. Marketing Strategy Growth and

Development Projects 2007 - 2012

6. A

Stakeholder Grid of

Contacts for Information and Support .

7. A Multi-Stakeholder

Road Map 2007 -2012



1 STSC’s Specific Characteristics - the Global Organization Framework This section offers a Governance Model of Excellence covering all stages of the STSC’s development, and incorporating results from existing benchmarking studies and related to key stakeholders. The purpose of developing these models is to be able to design a series of inventories for the business planning process, including:

- an inventory of items of fixed capital costs - an inventory of items of core personnel costs - an inventory of communications and networking items for costing

These associated costs and also potential revenue sources are specified as Excel spreadsheets attached to this document (see also Section C ch2) The 'common vision' described in Section 1 outlines how the Sustainable Tourism Stewardship Council (STSC) may look, and also maps out the main steps for its establishment. In this chapter the institutional and governance framework of the STSC and the key functions of standards development, accreditation, training, and marketing are described in sufficient detail to define cost parameters for the business planning sheets. For each function, a three phase description is provided including linkages with the other functions, based on the outline table in Appendix 2 of the Vision document. Common Mission – Common Organizational Process The Working Vision document lays the foundations for bringing the different interested parties to a common discussion, building on the work of previous years conducted at the global level: ‘Reports by the United Nations Environment Programme (UNEP) and the World Tourism Organization (WTO) have cited the benefits of certification and many governments, NGOs and other stakeholders are introducing national, regional and international certification programs. There is consensus that the increasing numbers of certification programs would benefit from shared functions such as marketing, training and development, while supply chains and consumers would benefit from the setting of standards.’11 The task to build such a service has reached a definitional point, enabling all stakeholders to review and reorient their own working agendas in synchrony with global market changes. In instances of such complexity as the establishment of a global accreditation mechanism, the need to work together is paramount. For this reason the STSC is structured with the widest possible stakeholder base, and the organizational model for this base seeks to achieve open, inclusive and transparent governance for all stakeholders. Territorial Coverage Currently, a series of existing networks active at the sub-global regional level have been involved in forming the global STSC process up to now. (See figure B1) They would be linked in to a global network of networks by the STSC development process. Exemplified by network structures such as those in the Americas, each global sub-regional network need to connect with its regionally-based stakeholders. Therefore 11 STSC Feasibility Study 2003 p7

1. The Global Organization Framework



national tourism forums, tour operators in the region, and consumers can be involved in the formulation of multi-stakeholder structures for their regional bodies. These would effectively take on the role of sub-global regional knowledge networks on sustainable tourism certification. ] Stakeholder Coverage Chapter 8 of the feasibility report (p275 -279) offers a multi-stakeholder categorization of the STSC members, establishing a nine key stakeholder classification model that has been used to design the stakeholder grid for developing the STSC. It has been adapted here to fit into four overall stakeholder categories12 which further facilitate the development of a clear governance structure. This allows us to build all the down columns of the grid. The across columns are formed by the territorial region, including a global column for international bodies (see Section B ch 7 Stakeholder Grid). From a Temporary Committee to a Permanent Board The following list provides the governance models recommended for the three phases of the STSC: Governance Model 1 – the Knowledge Network Phase

Managed by the STSC temporary steering committee (based on current membership).

Global regional representatives (1 representative for each of the four global regions).

Membership base (recruited from existing supporting organizations). Governance Model 2 – the Partnership Phase

Managed by a Partnership Executive Board (proposed and elected by global knowledge network members).

1 Development Officer. Multi-stakeholder representatives (divided into four groups from the stakeholder

grid, each with 2 representatives ). Global Regional Representatives (1 representative for each of the four global

regions). Membership base ( an expanded knowledge network).

Governance Model 3 – the Accreditation Phase

Managed by a Board of Directors (divided into four groups from the stakeholder grid, each with 2 representatives, plus 1 representative for each of the four global regions, which mirrors the Partnership executive body ).

Stakeholder Council (divided into: four groups from the stakeholder grid added to the four regional groups, totaling 32 - 60 representatives ).

Marketing, Training, Standard-setting and Accreditation functions (Executive staff of 7- 9 team members, potentially with additional marketing staff).

Membership base (comprehensive knowledge network covering all stakeholders and territories in depth).

Such a development path reflects a growth process created through bringing coherence to multi-stakeholder activities across the globe. These models are shown in the following three diagrams:

12 H. Hamele Diagram on Public Private Partnership Model for Funding the STSC 2005



Figure B1: Global Knowledge Network on Sustainable Tourism Certification – Territorial Representation Tourism stakeholders will belong to both:

a) a territorial region b) a stakeholder interest group

With this type of organisation, the global knowledge network’s communications channels can be established in a coherent manner, sharing methods and resources as well as information.

Governance Model 1 – the Knowledge Network Phase

Africa

European

Asia and Pacific

Americas

Tourism Certification Multi-Stakeholder

Knowledge Network

1) certification programs 2) governments 3) industry associations 4) tour operators 5) NGOs and consumer associations 6) intergovernmental institutions 7) donor and financial institutions 8) accreditation organizations 9) tourists

Multi-Stakeholder Global Knowledge Network on Sustainable Tourism Certification

STSC Multi-stakeholder

Temporary Steering Committee Global level

Managed by

Central Asia Russia Indian Sub-continent Middle East



: Figure B2: STSC Partnership Phase Multi-Stakeholder Structure The following STSC-Partnership Phase would then have multi-stakeholder representation:

Green boxes show territorial networks Yellow boxes show multi-stakeholder divisions Numbers refer to seats available for representation on a multi-stakeholder

board in phase 2 and the Stakeholder Council in phase 3.

Governance Model 2 – the Partnership Phase

Private Sector Intermediaries, tour operators

tourism services Board Seats 2

Council 5

NGOS

Consumer associations

Board Seats 2 Council 5

Certification bodies

Board Seats 2 Council 5

Donors, Government and Intergovernmental

Representation Board Seats 2

Council 5

Multi-Stakeholder Knowledge Network


four way multi-stakeholder component with four way regional representation

Board of Directors 12 Stakeholder Council 32 - 40

Americas Regional STSC representation Board Seats 1

Council 3

European Regional STSC representation Board Seats 1

Council 3-5

Asia and Pacific Regional STSC representation Board Seats 1

Council 3

Africa Regional STSC representation Board Seats 1

Council 3-5

Members’ Representative System for the Partnership and Accreditation Phases



Figure B3: The STSC Final Form and Function This would provide the foundation for the third and final form of the STSC seen below, (as also shown in the Working Vision document) A Stakeholder Council and Board of Directors can take their forms from the governance system developed in the partnership phase. Program Staff will be in place to run the Accreditation, International Standards, Training and Marketing Program areas.

Governance Model 3 – the Accreditation Phase

STSC Board of Directors 12

STSC Training

and Support Program

STSC-contracted accreditation body/ies

STSC Marketing Program

STSC International

Standards Program

Executive Director and

Program Staff 7- 13

STSC Stakeholder

Council 32-40

- STSC International Membership - Stakeholders from a Public Sector, NGOs, Certification bodies and

Tourism Businesses Global Knowledge Network

‘STSC-accredited’ certification bodies

‘STSC-accredited, certified tourism service providers

STSC-trained service

providers

STSC Accreditation

Program

STSC-endorsed training bodies

STSC technical working groups



Voting procedures in the governance structures STSC knowledge network membership will be open to all organizations who are committed to the promotion of sustainable tourism. The STSC membership will not vote directly on STSC standards or policies but will be actively encouraged to participate via a Stakeholder Council and the proposed standards and accreditation technical committees wherever possible. They will be kept fully informed of all STSC developments, draft policies, standards, etc.. These STSC members will elect the Board of Directors, and will propose nominees to sit on the Stakeholder Council. A 32- 40 seat multi-stakeholder council with global territorial coverage has been formulated to give STSC members a structured means being involved in the in the decision-making processes about standards and accreditation. It would then be possible to divide these members into three sustainability chambers (economic, environmental and social) for the purposes of standard setting. (An alternative model involving north-south representation is discussed in documents in Section C ch2 Notes to the Business Plan). The Board of Directors will be responsible for making the final selection of the Stakeholder Council nominees. They will also be responsible for overseeing the work of the executive director and other STSC staff and giving direction to the STSC program areas . Recommendations as to how the individual components of each governance structure are linked can be found below: STSC Knowledge Network Membership

• Elects Partnership Executive • Recommends nominees for membership of Stakeholder Council • Elects full Board of Directors • Actively engaged in commenting, implementing, promoting STSC policy, standards,

etc. • Divided into sub-global regional networks coordinated by STSC core • Pays STSC knowledge network membership subs and receives STSC membership

services Stakeholder Council

• Appointed by Board of Directors (on recommendations by membership) • Nominated by Knowledge Network Members • Responsible for representing stakeholder and territorial interests in advisory capacity • Formal role in approval of STSC International Standards by majority vote • Members of online standards development forum • Meets annually, or alternatively has initial meeting then meets every 3 years • 32 members • Ambassadors for the STSC • Involved in technical committees set up to develop international standards and

accreditation processes STSC Board of Directors

• Representative of multi-stakeholder groups and global regions • 12 Directors Elected by the STSC International membership to represent stakeholder

grouping or global region ( see Figure B2 for representational structure) • Financial, legal, governance and systems oversight • Appoints the STSC Stakeholder Council • Hires and fires Executive Director & Staff • Meets 2-3 times a year



• Staggered rotation of the board every 2 years STSC Staff Core Staff

Executive Director Full Time Communications/Development Manager Full Time Personal Assistant Full Time IT Officer Part Time to 2011, full time in 2012 Business/Finance Officer Part Time to 2011, full time in 2012 Intern 1 Temporary

Programme Staff

Standards Manager Full Time Training Manager Full Time Marketing Manager Full Time Marketing Officer Full Time from 2011 Intern 2 Temporary Intern 3 Temporary Intern 4 Temporary

Staff Job Descriptions

Executive Director Full Time The executive director will report to the board of Directors, being responsible for managing the day to day operations of the STSC. He/She will focus on ensuring the STSC develops the necessary human, financial and technological capacity to function according to its stated mission and objectives, In doing so the Executive Director will liase with all stakeholders and formulate the necessary partnerships to ensure that the governance structure and the progam areas of the STSC are run effectively. Communications/Development Officer Full Time The Communicatons/Membership manage will initially be hired to take on the responsibility of managing the knowledge network and developing the STSC Partnership. Liason with all stakeholders in order to develop the STSC’s resource base during this 2nd Phase will be a paramount concern, with a particular emphasis on identifying and working with potential funders. Production of STSC information and promotional materials, including an electronic newsletter and website material will be necessary, alongside facilitation of internet-based communications. Personal Assistant Full Time The Personal Assistant will perform administrative and secretarial duties to support the Executive Director and Communications Officer. He/She will ensure the efficient organisation of the administrative processes, deal with enquiries and maintaining records. IT Officer Part Time to 2011, full time in 2012 The IT officer will be responsible for ensuring that the STSC has a continuous IT capability, both in the office and in dealings with its members around the globe. This will entail the set up and maintenance of the IT network in the head offices, maintaining the STSC website and other internet-based communication tools. Business/Finance Officer Part Time to 2011, full time in 2012 The business/finance offer will be responsible for administering the financial needs of the STSC, including the maintenance of statutory records regarding income and expenditures. This role will include fundraising duties when it becomes a full time post.

Standards Manager Full Time



The Standards Manager wil be responsibe for managing both the standards and accreditation programs. He/she will ensure the efficient running of the standards and accreditation committees, and oversee the outsourcing of the accreditation function. Training Manager Full Time The training manager will be responsible for production of STSC training materials and the running of STSC training events. Close collaboration with existing networks will be essential in this role. Marketing Manager Full Time The marketing manager will implement and develop the STSC marketing strategy, working with all stakeholders to develop an effective global marketing campaign. Marketing Officer Full Time from 2011 The marketing officer will support the work of the marketing manager, taking on specific project based marketing activites for the 2011-2-12 period of activities. Interns Temporary Four interns will be assigned to the different Managers to support their daily work and deal with administrative issue.

[A discussion of alternative staffing numbers is provided in the accompanying Notes to the Business Plan document.] 3. Recommendation for STSC Work Programme:

1) Adopt the governance structures as recommended in this Section B ch 2 model by drawing up a legal document that takes the model definitions and constitutes the STSC governance program with named organisations in place.



2 An Implementation Strategy for the Establishment of the STSC – Networking, Partnership and Accreditation Development This chapter shows how the three governance models are related to each other, and what tasks each governance structure is designed to manage at each stage of the STSC’s progress The three phases This Global Organizational Framework is based on the three establishment phases described in the 'common vision'. Actions in these phases are comprehensively listed in table form in Section 3 ch1. Here they are summarized as follows:

Network Phase The current loose ‘STSC Network’ is converted to a more specifically defined Sustainable Tourism Certification Knowledge Network, and establishes itself as a global knowledge network on accreditation and standards setting for the sustainable tourism sector. Formal communications systems are established, and stakeholders interested in sustainable tourism are made aware of the STSC process and brought into partnership. There will be a membership fee, taking account of ability to pay and the expected benefits of membership, but it will not be charged in the network establishment phase. Membership fees will be set to cover the full costs of the STSC membership programs, including the costs of the Board of Directors and Stakeholder Council during the full STSC-Accreditation phase. It is proposed that the critical priorities for this phase are not the technical elements relating to the implementation of the four technical programs, but rather developing the membership base, establishing the global knowledge network, the raising of funds, and possibly the establishment and management of a limited number of technical sub-committees for implementing STSC technical programs during the Partnership Phase. This phase, built on existing global networking efforts, should not take longer than six months to complete.

Partnership Phase Once the knowledge network is functional, the STSC establishment process will move into its ‘Partnership Phase’. The key objective of the Partnership Phase is to establish the necessary organization and infrastructure to make STSC accreditation of sustainable tourism certification schemes possible. In this phase STSC's governance structure is more formally defined, establishing an initial multi-stakeholder chambered Stakeholder Council, and (still temporary) executive Board of Directors. There is a major focus on fundraising, supported by key partner organizations. A communications and resource development officer is expected to be appointed in this phase to coordinate fundraising and administrative processes. An initial legal entity may be established to hold funds, manage employees and run STSC's communication and work program. STSC begins to provide guidance to countries seeking to establish or upgrade sustainable tourism certification programs, and reaches agreement on standards and processes. There is a strong focus on the key tasks required to establish an effective accreditation capacity. STSC training, marketing, membership and support capacities are all developed during this phase. In this phase a brand and

2. An Implementation

Strategy for the Establishment of the

STSC



corporate identity of the STSC need to be developed using the knowledge network membership via a competition. Importantly during this phase, it is necessary for the STSC to launch a process-oriented focus to move towards a global standard, by setting up regional exchanges and benchmarking to a core global set of criteria that would eventually lead to a global standard setting process– a unique bottom up harmonization process of sorts. In the network phase of 2007 the establishment of the knowledge network lays the foundations of this process. In the partnership phase of 2007-8 management sub-groups working on standard setting are already in place, preparing for a coherent stakeholder viewpoint for the start of the accreditation phase in 2009. Tools to facilitate the partnership phase include the drawing up of partnership agreements, protocols of collaboration and Memorandums of Understanding. One option may include the signing of stakeholders up to a UN Type II Partnership (see Section C 3). This would enable the stakeholders to formalize the network structures, making the establishment of a fully functional STSC the key goal of the partnership. This will certainly facilitate any legal work arising through the interaction for the stakeholders with regard to the STSC legal form. The objective is to complete the 'Partnership Phase' by the end of 2008.

Accreditation Phase In the accreditation phase STSC is an adequately funded and resourced executive body with an ever-growing capacity to support and promote "STSC-accredited" sustainable tourism certification programs and their certified tourism operations. The Accreditation Phase sees the full realization of STSC standard setting, accreditation, marketing, training and support programs. "STSC accreditation" is provided by an appropriately qualified body independent of STSC. STSC itself offers participating certification programs a range of marketing and capacity building initiatives. STSC has a global membership base with organizational representatives taking seats on a Stakeholder Council, appointed by a board of directors composed 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 accreditation phase aims to start at the beginning of 2009 and continues as the final form of the STSC's existence. Responsibilities of a Sustainable Tourism Stewardship Council have already been highlighted in the STSCs general information leaflet: • Increase credibility of sustainable tourism certification programs by ensuring that certification is objective and transparent. • Provide information to consumers, tour operators, and other industry players about sound, accredited certification programs. • Reduce “greenwashing” and false sustainability claims by accrediting only credible, independent certification programs. • Help improve environmental and social standards and their implementation through sound certification programs. • Guarantee multi-stakeholder participation in the development of certification programs. • 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.



• Showcase certified companies as globally-recognized sound operations. • Lobby for political and financial support of accredited certification programs.13 Figure B4: Three-phased Development of the STSC Core Governance Body & Staff

Weaknesses and Threats to Success The overriding challenge facing those who will take on the responsibility of creating the STSC is the issue of finance. The real timing of establishment of the STSC via the

13 STSC General.PDF 2005

2. STSC Partnership Executive Board–



12 seats

1. STSC Temporary Steering Committee covering

global regions

3. STSC Board of Directors

12


7 - 13


32- 40

STSC Global

Knowledge Network

on Sustainable




Partnership Phase 2007 - 2008


Development Officer



proposed 3-phased process will be completely dependent on the ability of STSC's supporters to raise seed-funding, and on the ability of STSC's initial staff and driving stakeholders to raise establishment funding, and, as soon as possible, reliable sources of continuing revenue. The following issues are all related to the STSC’s fundraising capability. An initial limiting factor in the Network and Partnership phases will be the ability of the STSC temporary steering committee to dedicate time and effort to the establishment of the STSC - making timely decisions, raising seed funding, and developing the necessary papers and proposals for discussion, etc.. Personnel dedicated on a part- and full-time basis to the establishment of the STSC will be necessary to ensure the proposed timescale is met. Without a sufficiently resourced and committed Steering Committee and then Partnership Executive Board, establishment of the STSC will not take place in the proposed timescale. Without funding to meet basic expenses, the STSC staff will not be able to do their jobs effectively and efficiently. Recent leaps in IT will go a long way to mitigate the lack of travel resources, but face-to-face meetings will still need to occur. The use of electronic conferencing will need to be a strong feature of the STSC process, and the tools to do this cheaply and easily are now widely available. Attention needs to be paid to facilitating/training individuals in the use of these new networking tools to ensure travel budget overheads are truly minimal. Furthermore, the challenge of bringing all stakeholders around the same table and then finding agreement is a time-consuming and difficult process that requires good negotiation skills, a clear understanding of the range of multi-stakeholder actors involved, and the ability ot implement the principles of good governance (openness, participation, accountability, effectiveness and coherence). Capacity building the STSC phased development For these reasons, the first two phases are constructed to have minimal overheads, and aimed at delivering a full revenue stream to move to the final accreditation stage (see this section ch 4 for full revenue details) If the availability of seed funding, and availability of subsequent establishment funding, is the time-limiting factor in the establishment of the STSC, then what steps can be taken to resolve the situation positively without ‘waiting for funding’? Bottom-up support and in kind funding capacity-building offers from those stakeholder driving the STSC’s development allow the following potential processes to be formulated by a core group of active stakeholders:] In the Network Phase, the STSC Temporary Steering Committee take on the role of project leadership. Within the committee, roles, responsibilities and tasks are allocated to the various members, who will absorb the costs in their own budget, raise the money to do the work themselves or form partnerships with other stakeholders to raise funds.. In the Partnership Phase, the Executive Board will be focused on securing the full funding for the final Accreditation Phase, as well as developing the STSC identity. It will also establish the Stakeholder Council and a technical committee to develop the international standards, and a series of management teams to oversee the four key program areas. At this stage only one full time staff member is envisaged, playing a supporting role to an executive board who are still the key drivers of the process.



In the Accreditation Phase the Board of Directors will be managing an executive staff that will run the accreditation, standards, training and marketing programs. In this business planning process, the budget for each program has been designed to break even to show how the market-based requirements of meeting the true STSC operational costs (ie the program costs are met by revenues from the same program activity), though it may well be that the marketing and training components will generate funds to support core costs as well as program costs. The Board should oversee the transition from funded body to self-supporting enterprise by the year 2013. However, it is highly unlikely that the STSC will be a truly self sufficient body by this phase, as experience shows that a ten-year development period is a more likely time frame in which self-sufficiency can be achieved. The Business Plan shows that the point of self sufficiency is likely to be attained by the year 2017 (see STSC Business Plan Primary Overview 2007-2012/Breakeven Projection.) The table below provides a summary of tasks to be undertaken in each phase. Section C ch1 contains a comprehensive table of these tasks that have been matched to the financial forecasting and marketing plans.

Figure B5. Summary of Tasks for STSC Work Programme

STSC 'internal' programs and general institutional requirements Phase International Standards

Accreditation Marketing Training and Support

Objective of establishing a global knowledge network on sustainable tourism certification Fully functioning Steering Committee Establishment of sub-global regional representatives and multi-stakeholder membership Basic communications and travel budgets established Major focus on fundraising Map of the process available STSC communications capacity established Development of a Partnership agreement

Network Phase

Inauguration of STSC Partnership. The single objective of the partnership is to establish the STSC Accreditation process Employment or secondment of coordinator Institutional and governance structures defined within a Partnership Agreement Legal entity, board, stakeholder council and membership are fully established. Establishment of necessary STSC sub-committees and preliminary institutional structures Founding assembly held, approving international benchmarks and offering global capacity-building and marketing strategy for member certificates. Major focus on fundraising Staff recruitment programme

Partnership Phase

Establish Standards Program Management group Standards Program established.

Establish Accreditation Program Management Group Accreditation Program established.

Establish Marketing Program Management Group Marketing Program established.

Establish Training Program Management Group Training Program established.

Excel Work book

Reference: Network and Partnership Phase and the Pdf File ‘Notes on Budget Spreadsheets



STSC 'internal' programs and general institutional requirements Phase International Standards

Accreditation Marketing Training and Support

Process for drafting STSC international standard(s) defined. International standards developed. International standards approved.

Agree structure for outsourcing accreditation Legal and financial framework established. Accreditation and certification requirements defined. Accreditation contractors identified and contracted.

Legal and financial framework established. STSC logo developed and launched. Corporate identity established. Marketing materials for use by STSC-certified service providers developed

Legal and financial framework established. Training materials developed. Training for trainers program becomes operational.

This phase marks the start of full accreditation service delivery Employment of director and staff Appointment of Board of Directors Bi-annual General Meetings of Stakeholder Council Regular meetings of regional bodies Effective Council and sub-committees Build and strengthen benefits of STSC membership Strong development of training and marketing programs

Accreditation Phase

Support training programs Monitor accreditation evaluations and trouble shoot as necessary. Develop guidance materials. Review and revise standards. Develop new standards as required.

Sign accreditation contracts. Monitor progress of accreditation evaluations, and trouble shoot as necessary. 2009: 1st STSC Accreditations, and hence STSC-endorsed certificates

Build and develop the international marketing of STSC-endorsed products and services Commencement of Marketing Projects

Build and develop STSC-endorsed training programs.

4. Recommendation for STSC Work Programme: 1) Adopt this three phased development process as recommended in this section ( B ch 2) and as elaborated fully in section C ch1. .

See also: Excel Work

book Reference:

Business Plan Primary Overview STSC-Accreditation Phase (& Options) and the Pdf File ‘Notes on Budget Spreadsheets



3 Specific Operational, Administrative and Financial Needs of the STSC to meet the Implementation Strategy This section elaborates the costing of the STSC process. It is supported by working documents showing Costs/Expenses Formula in Excel formats that can be adjusted for use in the establishment and running phases of the STSC. This supporting information is available in the Section 3 Annexes, with references to the Excel Workbooks named:

STSC Business Plan Primary Overview 2007-2012.xls STSC Networking and Partnership Budget 2007-2012.xls STSC Accreditation Phase Budget 2007-2012.xls

Options for costing this process can be found in detail in the following documents:

STSC Accreditation Budget Options.exl Notes to the STSC Business Plan

An indication of the form and content of the primary spreadsheet is given in the tables below, which specify the full minimum reasonable implementation costs for the STSC development process, including the costs of running the accreditation scheme as well as the project development costs. It covers the years 2007 – 2012, and is broken down into the three development phases. The plan shows that the average cost of the project is US1,238,000. The 2003 feasibility study estimated $850,000 (see box below), but a comparison of total costs shows that the 2007 business plan costs over US$ 1.2 million less, with higher staff numbers and a much bigger marketing budget to do the same job in a shorter time. Figure B6: Comparison of cost estimates with the 2003 Feasibility Study

One of the premises of this business planning exercise has been to keep potential costs as low as possible without compromising the functional capability of STSC service delivery. Secondly, the demand to move ahead without a large donation at first has been taken into account. For these reasons the network and partnership phases have been designed on a minimal cost basis, to ensure that the overall process can take root without major funding form the outset.

Averate Annual cost US $ Total Average 2007 Business Plan 7,430,779 1,238,4632003 Feasibility Study 8,667,769 1,029,402

3. Specific Operational,

Administrative and Financial Implications of the Implementation

Strategy



Figure B7. Network Phase Costs (Extract from STSC Business Plan Primary Overview 2007-2012.xls Network and Partnership Worksheet)

STSC Business Plan Overview 2007 -2012 Network Phase US$

2007 1st

Quarter

2007 2nd

Quarter

Network Phase Total

B Costs Core Staff Staff Salaries - with employer's costs 0 0

Program Staff Staff Salaries - with employer's costs 0 0 (total staff costs) Third Party, Consultant & Marketing IT - external support 20,000 Design work 10,000 Printing and publishing 10,000 Translation 2,000 Administration 5,000

(Total 3rd Party Consultants/Marketing)

47,000 47,000

Travel and accommodation STSC staff and consultants 10,000 5,000 event travel and accommodation 10,000 10,000 (Total Travel and Accommodation) 20,000 15,000 35,000 Office costs Rent Phone, fax, internet 2,000 2,000 0 Office Supplies 600 600 0 Miscellaneous Office costs Computer Equipment (total office costs) 2,600 2,600 5,200 B Total Costs 22,600 64,600 87,200

This shows that the STSC can establish a global knowledge network on tourism certification for under US $90,000 . Key stakeholders who are driving this process can meet this with their in-kind efforts, and also can actively look for the first sponsor to take a major donor role. For example, could UNEP find the budget to build the network as part of its certification review process? (see Section B ch 8). Or is there a corporate sponsor or national/regional government who would like to have its name associated with the setting up of such a network? Actions such as these would provide an excellent starting point demonstrating how joint action give STSC partners value for money, and would kick start the STSC process right away (see section B ch5 for more capacity building strategies to meet these costs).



Figure B8: Partnership Phase Costs: (Extract from STSC Budget Primary Overview 2007 -2012. xls /Partnership Phase.Worksheet) STSC Business Plan Overview

2007 -2012 Q 3 Q2 Q1 Q2 Q3 Q4 Total Partnership Phase Quarterly Summary 2007 2007 2008 2008 2008 2008 Partnership

B Costs US Dollars $ Staff Salaries Staff Salaries 35,000 17,500 17,500 17,500 17,500 105,000Staff Emploment Costs Employer's costs 0 0 0 0 (total staff costs) 35,000 17,500 17,500 17,500 17,500 105,000

Partnership Phase Quarterly Summary 2007 2007 2008 2008 2008 2008 Partnership Third Party, Consultant & Marketing

Audit Fees 0Outsourced accreditation costs

Legal Fees 10,000 2,500 2,500 2,500 2,500 20,000Trademark registration costs 5,000 5,000 10,000Staff training 2,000 2,000IT - external support 10,000 20,000 20,000 50,000Design work 10,000 10,000 5,000 0 0 30,000 55,000Printing and publishing 10,000 10,000 30,000 10,000 10,000 25,000 95,000Translation 10,000 10,000 0 0 0 20,000Administration 5,000 5,000 10,000 5,000 5,000 10,000 40,000(Total 3rd Party) 55,000 25,000 84,500 37,500 22,500 67,500 292,000

Travel and accommodation

STSC staff and consultants 28,000 2,000 50,000 2,000 32,000 2,000 116,000event travel and accommodation 20,000 0 64,000 84,000(Total Travel and Accommodation) 48,000 2,000 50,000 66,000 32,000 2,000 200,000



Office costs

Rent 1,250 1,250 2,500 2,500 2,500 2,500 12,500Phone, fax, internet 1,000 1,000 1,500 1,500 1,500 1,500 8,000Office Supplies 3,000 2,000 300 300 300 300 6,200Miscellaneous Office costs 300 300 300 300 1,200Computer Equipment 5,000 0 0 0 0 5,000(total office costs) 10,250 4,250 4,600 4,600 4,600 4,600 32,900B Total Costs 148,250 31,250 156,600 125,600 76,600 91,600 629,900

What the Feasibility Study said about Costs … ‘The annual cost of running the STSC-Accreditation is expected to be around $850,000. This figure includes a basic staff of five full time and one half time persons and operational expenses, marketing and communications, and the costs associated with implementing the accreditation process (initial assessment, annual paper audit, and site visits every three years). It also includes development of auditing procedures, criteria, and training of both internal and external assessors. Costs will increase marginally as the number of activities and services increase (numbers of applicants, numbers of site audits, level of marketing and lobbying efforts). This budget is based on conservative estimates. It is below the annual budgets of other environmental and social accreditation agencies operating worldwide, though comparisons are difficult given their various stages of development and differing structures. The costs of the outsourced accreditation function are not included, but It is expected that these would break even’. STSC Feasibility Study 2003 p13.



The total cost of the partnership phase comes to a minimum of $554,900 US or maximum $629,900 US. This means that for approximately US $630,000 a global network can be set up for supporting certification bodies and certified products and services. This network would have a multi-stakeholder composition mirrored in the four territorial regions. The Partners in this phase would be collaborating on ensuring a global quality and trustworthy STSC accreditation system was being defined (see Section C ch 1 Implementation).

Discussion Point - the STSC Information Technology Capacity-Building Program The Information technology tools available to the STSC include: • Email systems • Web browsers • Websites • Web Forums • Document sharing • Net Conferencing • VOIP Audio Visual Conferencing (Skype) • Global mapping and display capabilities • Bibliographical & Stakeholder Databasing Function • Events Calendars • RSS1Website interfaces • Multi-lingual-capability These technological development have become the tools to do global business. And incredibly, much of it is free. The difficulty in using these resources can be overcome by a clear IT concept and strategy and good training plan. The efficiency and cost effectiveness of the STSC in fact depends on the wise implementation of its IT program. This business plan includes have in-house IT capabilities for set up and maintenance, with project based IT implementation, such as structuring a portal for the global knowledge network, equipping and training the board of directors and stakeholder council for video conferencing and internet group work. The Marketing strategy also has a high IT content, with the Mark-IT project giving the STSC the ability to offer the best and latest in web-based marketing. (See also the Discussion box IT and Travel Costs)



Figure B9: Accreditation Phase Costs: Extract from STSC Business Plan Primary Overview 2007 -2012. xls /Phases by Quarter worksheet

STSC Business Plan Overview 2007 -2012

2009 Total

2010 Total

2011 Total

2012 Total

Accreditation Phase Total

Accreditation Phase 2009 -2012 US $

B Costs US Dollars $ Staff Salaries Staff Salaries 395,000 464,750 515,550 591,328 1,966,628 Staff Emploment Costs 0 Employer's costs 158,000 185,900 206,220 236,531 786,651 (total staff costs) 553,000 650,650 721,770 827,859 2,753,279 Third Party, Consultant & Marketing

Fees

Audit Fees 20,000 30,000 10,000 10,000 70,000 Outsourced accreditation costs 0 0 0 0 0 Legal Fees 65,000 55,000 65,000 70,000 255,000 Trademark registration costs 10,000 10,000 10,000 10,000 40,000 Staff training 8,000 6,000 3,000 3,000 20,000 IT - external support 55,000 55,000 55,000 75,000 240,000 Design work 65,000 35,000 55,000 110,000 265,000 Printing and publishing 112,000 127,000 170,000 235,000 644,000 Translation 20,000 20,000 50,000 110,000 200,000 Administration 20,000 20,000 50,000 540,000 630,000


375,000 358,000 468,000 1,163,0002,364,000




STSC staff and consultants 92,000 104,000 104,000 107,000 407,000 event travel and accommodation 272,000 224,000 224,000 224,000 944,000 (Total Travel and Accommodation) 364,000 328,000 328,000 331,000 1,351,000 Office costs Rent 24,000 24,000 24,000 24,000 96,000 Phone, fax, internet 7,200 7,200 7,200 7,200 28,800 Office Supplies 6,200 1,200 1,200 1,200 9,800 Miscellaneous Office costs 0 0 0 0 0 Computer Equipment 62,800 16,000 16,000 16,000 110,800 (total office costs) 100,200 48,400 48,400 48,400 245,400 B Total Costs 1,392,200 1,385,050 1,566,170 2,370,259 6,713,679

Figure B10: Annual Cost Breakdown during STSC-Accreditation Phase

Annual Cost BreakDown Accreditation Phase

591,000

337,750

61,350

688,320

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1

Cost Categories

US

Dol

lar Third Party

Travel & EventsOffice CostsStaff Costs



The bottom line of the STSC The summary table below presents an expected cost scenario for the STSC between 2007 and 2012. This is the bottom line of viability. The minimum cost figures represent the costs that have been stated in the tables above, minus expected service revenue (see next chapter). The maximum cost figures are only reached if no income is made and the full marketing programme is executed (see Section B ch 6 for what this involves). The reader should note that all costs mentioned are expected to be met by a mixture of in-kind support or direct financial assistance. Who offers what is the subject of the STSC actual implementation process.

Figure B11: Total Funding Costs of Implementing the STSC by Phase

Phase of STSC Development Min Funding Cost

Max Funding Cost

Year 1 Knowledge Network/Partnership 87,200 87,200

Year 1 -2 Partnership Phase 554,900 629,900Year 3 Accreditation Phase 1,278,658 1,392,200Year 4 Accreditation Phase 950,000 1,385,050Year 5 Accreditation Phase 752,549 1,566,170Year 6 Accreditation Phase 1,226,060 2,370,259Total Cost 4,849,367 7,430,779

The business plan estimates the minimum reasonable cost of running the STSC as a whole at just over 1.28 US $million per year, with a core staff of 7-13 (including 4 interns). The maximum cost figures put the STSC budget needs at just over 1.76 million per annum over the six year period (see Excel Sheet STSC Business Plan Overview 2007-2012). Though these 'headline figures' are marginally higher than the earlier feasibility estimate, the minimum proposed program of this business plan includes a training function, and an expanded marketing function thought necessary for a functional STSC. The training function could pay its way by contributing 20% of the general STSC overhead, and provides a level of control over quality and consistency in the provision of STSC certification which would otherwise be lacking. The marketing program allows STSC to enter into a positive mainstream sustainability process in which the perceived value of the STSC brand is increasingly enhanced, providing benefits for STSC certificate holding businesses, STSC-accredited certification bodies, and STSC-endorsed training bodies, as well as for the consumer. At the end of the six year support phase, the STSC reaches the following cost break down.

Figure 16 Cost Breakdown during Operational STSC-Accreditation Phase

Cost Breakdown Accreditation Phase

Office Costs $245,400, 4% Staff Costs

$2,753,279 41%

Travel& Events

$1,351,000, 20%

Legal/Consulting,

$2,364,000, 35%



The revenue plan in the next chapter shows an optimal performance scenario for the STSC based on a maximum cost scenario. (In the more detailed Technical Tools [Section 3 ch 2] scenarios can be elaborated in an excel sheet in which users can manipulate the data to compile alternative versions if and when subsequent changes occur).

5. Recommendation for STSC Work Programme: 1) Validate the estimated cost requirements by hosting a general discussion as an agenda item after full circulation of the document and sufficient consideration time.

Discussion Point – Location and Cost of Premises There has been several possibilities raised for siting the STSC premises, ranging from the strategic suggestion that they should be housed within a global organisation to the pragmatic offer of office space in the Forest Stewardship Council (FSC) and IFOAM’s Bonn Headquarters. This latter suggestion is a very practical offer that comes with the possibility of administrative support. It also comes with an offer from International Accreditation Services (IAS) to undertake the accreditation function. It confirms Germany as a centrepoint of certification and accreditation activities that is gaining sufficient critical mass establish a multi-stakeholder partnership, given the existence of the National Sustainability Group on Tourism, the German Viabono certificate, and the annual ReisePavillion Sustainable Tourism Fair alongside the FSC and IAS offers. The steering committee has an opportunity to get the STSC off to a solid start with such an offer.. However, such short term advantages must be weighed against the bigger picture of a global organisation’s possibility to find the most cost-effective location fro physical premises. In terms of projections made here, the office rental budget is a seen as minor financial variable in phases I and II, and it is only required that the choice of office space matches this budget line. The most practical temporary location should be taken up initially, but the strategic picture should be foremost for the final location of premises, with the idea of being housed in a credible institution being actively pursued. A comprehensive note to inform this discussion is provided in the accompanying document, ‘Notes to the Budget’ .



4 A Business Model of Financial Sustainability –Planning Revenues to Guarantee the STSC’s Sustainability This chapter provides Costs & Revenue Formula extracted from the accompanying Excel Sheets. The revenue sheets are combined with the cost formulae, and are also accessible in Section C ch 2. This section specifies the projected revenue for the project development and long term running of the STSC. It covers the years 2007 – 2012. Advice from the feasibility study on this issue concludes: ‘It is probable that the STSC will rely on both fees and subsidies for its immediate future. Therefore, it is imperative to think .outside the box and develop cost effective tools to achieve goals in developing a business model for a STSC. It may be that the complexity, size, and location of the certified operation will mandate a different intensity or level of auditing. This approach may minimize costs for certain types of operations. Once it has developed the most cost efficient and credible operational models, the STSC will have to test different revenue models, from charging flat fees per certificate or turnover to developing formulas that accommodate differences in complexity, size, and geographic location. Fee structures should take into account equity issues of small operations in developing countries. Royalties or licensing fees may not be feasible for the sustainable tourism sector, though the possibility of collecting a levy on tourism products could be an option that would require further research. The concept of looking to the users along the chain, including the end-users, to help pay for accreditation needs to be further explored.’ (Feasibility Study 2003 p13) Alongside an analysis of costs and the necessary revenue flows that will cover them, this chapter also provides a: • Focus on potential funding sources and strategies for raising funding. • Focus on revenues from STSC services (membership, accreditation, branding, training).

A set of underlying revenue assumptions have been structured so that when examining the excel spreadsheets the reader can see: • A model in which the STSC is receiving substantial core funding from projects and grants • A bottom line of funding that is the minimum requirement for the STSC to progress. The Business Plan Overview 2007-2012 The following table provides the reader with an overview of the full cost and revenue flows for the entire period of the establishment process:

4. A Business Model of Financial Sustainability

Cost & Revenue Accounts 2007-2012



Figure B12: EXCEL Spreadsheet Overview of the STSC Business Plan 2007-2012

STSC Business Plan Overview

2007 -2012

Network Phase Total

Partnership Phase Total


STSC 3 Phase Total

Summary by Phase Revenue &

Costs US $ Revenue & Costs US$

Revenue & Costs US$

Revenue & Costs US$

Funding Revenue Donations - Core 87.200 376.900 2.447.585 2,911,685

Donations - Project

Specific

24.000 501.681 525,681

Sponsorship of STSC

events

154.000 1.258.000 1,412,000 Sub-Total A1 87.200 554.900 4.207.266 4,849,366 Revenue from Services KN Membership fees 0 20,000 Membership fees 20.000 714.844 714,844 Other Services 0 0

Royalties/commissions on STSC standards use

0 0

Accreditation Fees -Maximum estimate

80.000 80,000

Training Fees 537.500 592,500

STSC Trademark

Marketing Fees

55.000 1.313.542 1,313,542 Subtotal A2 75,000 2.574.401 2,649,401 A Total Revenue 87.200 629.900 6.781.667 7,498,767

B Costs US Dollars $ Staff Salaries 105.000 1.966.628 2,071,628 Employer's costs 786.651 786,651 (total staff costs) 0 105.000 2.753.279 2,858,279

Third Party, Consultant

& Marketing Fees

0 Audit Fees 0 70.000 70,000

Outsourced

accreditation costs

0 0 Legal Fees 20.000 255.000 275,000

Trademark registration

costs

10.000 40.000 50,000 Staff training 2.000 20.000 22,000 IT - external support 20.000 50.000 240.000 310,000 Design work 10.000 55.000 265.000 330,000 Printing and publishing 10.000 95.000 644.000 749,000 Translation 2.000 20.000 200.000 222,000 Administration 5.000 40.000 630.000 675,000



(Total 3rd Party

Consultants/Marketing)47.000 292.000

2.364.000 2,703,000 Travel and

accommodation

STSC staff and consultants

15.000116.000 407.000 538,000

event travel and accommodation

20.00084.000 944.000 1,048,000

(Total Travel and Accommodation)

35.000 200.0001.351.000 1,586,000

Office costs Rent 0 12.500 96.000 108,500 Phone, fax, internet 4.000 8.000 28.800 40,800 Office Supplies 1.200 6.200 9.800 17,200

Miscellaneous Office

costs0

1.200 0 1,200 Computer Equipment 0 5.000 110.800 115,800 (total office costs) 5.200 32.900 245.400 283,500 B Total Costs 87.200 629.900 6.713.679 7,430,779 Total Funding

Requirement MINIMUM87.200 554.900 4.207.266

4,849,366 Total Funding

Requirement MAXIMUM

87.200 629.900 6.781.667

7,430,779

Interpretation of the Data The table above (Figure 18) and accompanying graph below give a full picture of the human and capital resources required by the STSC to reach a sufficient level of operations to be able to reach self-sufficiency. It costs the recommended governance process that involves running a membership organisation as a knowledge network, with a stakeholder council of 32-40 representatives to address standards issues, plus a board of 12 directors to direct the range of STSC services in the four programmes of membership/governance, standard setting, accreditation, training and .marketing. The suggested staff team costed here consists of an Executive Director, Communications& Resource Development Officer, Personal Assistant, IT Officer, Finance Officer, a Standards & Accreditation Officer, Marketing Director and Training Director, plus interns. Travel and Meetings budgets make up the main expenses outside of salaries, with the average annual cost of the project estimated to be 1,238,463 US dollars. Income Analysis during the STSC-Accreditation Phase Development Period The table with chart below shows how the STC can meet such costs through income generating activities ranging from fund-raising to training and marketing services



Figure B13: Income Stream Synopsis for the STSC Accreditation Phase

Revenue Synopsis - STSC-Accreditation Total Phase Annual

Donations - Core 2,447,585 611,896 Donations - Project Specific 501,681 125,420 Sponsorship of STSC events 1,258,000 314,500 Membership fees 714,844 178,711 Accreditation Fees - Maximum estimate 80,000 20,000 Training Fees 537,500 134,375 STSC Trademark Marketing Fees 1,313,542 328,385 A Total Revenue US$ 6,781,667 1,695,417

A more detailed discussion of each revenue stream is provided towards the end of this chapter. [NB. For a detailed discussion on the above revenue account figures, please refer to the excel spreadsheets and Section C ch3, where the reader is taken through a comprehensive discussion of the logic behind the figures. The reader also has the opportunity to manipulate them in the excel spreadsheets that accompany this document according to their perception of the situation. From these sheets the responsible members of the STSC executive body can plan the various stages of organisational growth.] Funding Levels It is useful to look at yearly minimum and maximum levels of funding (See graph 1), in which an annual funding line can be plotted to ensure financial capacity is guaranteed year on year for cash flow purposes. Whatever payment breakdown is chosen, the total funding requirement

STSC Accreditation - Annual Income Stream

Membership Fees $178,711,

10%

Donations Project Specific $125,420, 7%

Donations Core, 6$11,896, 37%

Event Sponsorship,

$314,500, 18%

Accreditation Fees $20,000,

1%

Trainng Fees $134,375, 8%

TradeMark Fees, $328,385,

19%



Figure B14: Minimum and Maximum Funding Requirements

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. This table shows how much funding is required a) if STSC services generate predicted incomes (minimum funding requirement) and b) if the full STSC costs of operation are covered by funding (maximum cost funding requirement).


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1 2 3 4 5 6


US

Dol

lars


Total Costs



Total Costs 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259




Annual Breakdown



Figure B15: Target Figures for Client Take Up and Related Costs at Breakeven Point

2009 2010 2011 2012 2013 2014 2015 2016 2017 2017


Estimates of End-Users Target Figures for STSC Client Numbers US$ STSC Members 162 150 155 159 207 227 250 275 303 249669Training Events 250 427 677 954 1049 1154 1269 1396 1536 383933Number of Accreditations 8 8 8 8 6 4 4 2 2 4,000Accreditation renewals 8 16 20 28 30 32 32 32 32,000Trademark Marketing Fees 313 374 490 607 490 539 593 652 717 591454 A Total Income 821423 903565 993922 1093314 1261056 1,261,056EXPENDITURE Staff costs 721,770 650,650 652,602 654,560 656,523 656,523Legal, Technical, Design 468,000 351000 352,053 353,109 354,168 354,168 328,000 246000 184500 185,054 185,609 185,609Office Costs 48,400 48,400 48,545 48,691 48,837 48,837B 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

The above table shows the STSC achieving breakeven point in 2017. It shows target figures for the various revenue streams in terms of user take-up (Estimates of End Users). These produce an income level for the years 2013- 2017, Expenditure is derived from estimates of programmes from the 2009-12 phase combined with cost-cutting targets, with a 3% increase for inflation.



Figure B16: Breakeven Point The breakeven point shown here is achieved after a ten year funding period, The graph shows how the development funding period recommended in this business plan leads the STSC to a point of operations in 2012 where it has firmly established its income streams. However, a further five years of supporting funding will be necessary, but on much reduced levels, and successively reduced until zero funding is achieved in 2017. In this projection client numbers and revenues have been taken from the self-sufficiency estimates and given actual annual values from the post-funding review period, but follow the primary business plan’s income estimates up to 2012.


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000


US$



Total Cost

Maximum Funding



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 1,241,413 1,245,137

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 1,241,413 1,245,137

1 2 3 4 5 6 7 8 9 10 11



The Business Case for the STSC The tourism sector needs to be sustainable in the both the short and long term, which means ensuring that businesses can be competitive without having negative environmental and social impacts. Certification is a tool to achieve this. In the global market place, national or regional certificates need an internationally recognisable, trustworthy set of sustainability criteria. The creation of the STSC makes this possible through a multi-stakeholder effort that can effectively determine a common standard, and distribute the costs of setting up a global accreditation system among those who will benefit. Furthermore, the STSC knowledge network is a cost efficient way of being in contact with others for the purposes of data gathering, information exchange, revenue generation and acquiring knowledge and building partnerships for joint actions. There is a strong case to argue that the STSC is an excellent vehicle when it comes to pulling all the tourism stakeholders together in a highly organised manner to address sustainability issues. In terms of increasing market choice of sustainable products and services, a successful STSC can improve certificate end-user numbers as well as helping sustainable businesses develop a good profile on the global market-place. Self-sufficient operation of the STSC by 2017 is possible, and provides a clear argument itself for the business case for a global accreditation service focused on sustainable tourism. The table above shows the projections on which the financial figures in the business plan are premised. These act as average target figures that in reality will depend on the size and type of client that does use the STSC services. Whether these targets are actually achieved will depend on the success of the implementation team, but the strategy of seed funding the network and partnership phases first pays immediate dividends in as much as a global communications network and market place is opened up, with the STSC providing the level playing field for sustainability certification standards. Finally, as an investment in the value system for sustainable development, both governments and business are playing their part in changing the awareness of the business community and their consumer market. It makes good business sense for a clear and trustworthy set of sustainability criteria are made available. This should help raise the standards of sustainable development all round. Capacity-building the STSC Process This level of costs and revenue serves to reflect the reality of establishing a viable and credible global governance body. Income streams can be created by: • Donor funding • Project applications • In-kind donations • Training Fees • Marketing Revenues

These are now considered in relation to the stakeholders involved in the STSC’s development.

Focus on potential funding sources and strategies for raising funding. The ability of certificates themselves to pay for the establishment of a global accreditation system is not considered viable. The current reality is that certification bodies cannot pay for the establishment phase on their own. The approach to funding the STSC in this business plan is built on a multi-stakeholder solution, where the set up costs are spread out over a range of stakeholders. This view is substantiated in almost every document reviewed in the course of this consultancy. The general perception of the majority of certification bodies is that they themselves struggle to break even, and are also reliant of external funds, and therefore cannot tolerate any further costs. Their potential future contribution is however important. And marketing budgets may be



used to pay for being accredited, so long as there is a perception that the STSC promotional systems work. (cf Marketing Strategy) The box in this section shows how the feasibility study highlighted potential funding opportunities available to the STSC. This business plan suggests a development strategy that builds on these recommendations by providing a breakdown of STSC activities into ‘projects’ which can be matched to specific financing sources, and also showing that after seed funding and a short development phase, the STSC can become financially self-supporting. Identification of funding sources The following list provides a starting point of contact organisations for those who will be responsible for fundraising for the STSC: • World Business Council on

Sustainable Development (WBCSD) Members

• Global Reporting Initiative (GRI) Members

• UN World Tourism Organisation Members

• EU Funding • National Governments supporting

UNEP initiatives • National Governments who wish to be recognised on a global stage • Regional Authorities who have an interest in a global presence • Private Foundations who can follow the Ford Foundation model of funding the FSC • A mix of funders following the model that helped create the MSC World Business Council on Sustainable Development (WBCSD) Members WBCSD members are fully aware of the business opportunities of sustainable development. They are constantly arguing the business case for sustainable development, and have a working awareness of sustainability issues. The majority of WBCSD members are high profile multinational operations, and would have an interest in global image development. Some members may even be keen on developing certified products and services themselves, or green their supply chains. ‘The total turnover of WBCSD member companies is 5,200 billion USD. They employ 11.6 million people, and touch 3 billion consumers per day through products and services’14. Global Reporting Initiative (GRI) Members What applies to WBCSD members is also applicable to the GRI members. A major difference however is that GRI members are already engaged in a reporting process in which standard setting and benchmarking are openly-discussed topics. One of the identified flaws in the GRI

14 http://www.wbcsd.org Members Page accessed 1.12.06

Feasibility Study Points to Funding Opportunities Donations from foundations and/or governments and intergovernmental agencies are a very important part of the revenue base for several of the organizations studied: in all ten cases, seed money came from donations. The study has clearly shown that it is possible to get donor money to fund the initial start up costs of an accreditation organization. The study has also shown that a significant amount of donations can be attracted, especially for specific activities such as research, development of new standards or guidelines, and training. However, from the study it is also evident that donors do not wish to fund projects indefinitely. most donors only want to fund projects/organization in an initial start up period after which the donor expects that the project or organization will be able to .stand on its own. and be financially independent from its initial donor(s). Experiences from the studied organizations also show that donations tend to fluctuate a great deal from one year to the next, which means that it is difficult to base an organizations´ operational budget on revenues from donations. Organizations that mainly rely on donations are often forced to operate under a very short timeframe, because their revenues fluctuate a great deal, which makes it very hard to plan any bigger project or how the organization should develop in the future. STSC Feasibility Study 2003 p166



reporting process is the lack of third party geo-referenced corroboration of a company’s triple bottom line accounts. It would be a great asset to the GRI process if reports included references to use of certified products and services. Furthermore, the Tour Operators Initiative is linked to the GRI, but is in need of showing more practical commitments to sustainable development. Support of the STSC could partially satisfy their need to take more action on this front. UN World d Tourism Organisation Members The UNWTO are fully aware of the benefits of a coordinated development of a knowledge network on certification, and may be able to interest some of their members to back this particular work. The Global Ethics committee of the UNWTO may reinforce support for a global accreditation body, especially as the standard setting and training functions of the STSC fit their mission. Also one or some of their country member could back the initiative as part of their contribution to the SCP framework of programmes. EU Funding The European Commission has a range of funding mechanisms that can be accessed by the STSC, but this requires the backing of a regional or national government in partnership with at least 2 other EU member states or a ‘Third Country’15 . Here, the main approach may well be to promote the ‘knowledge economy’ and SME support component of the STSC rather than highlight its tourism focus, as tourism is a national competence and therefore problematic for the EC to deal directly with this issue. DG Environment, DG Enterprise and DG Development should be the starting point of investigation of what funds are suitable. The DG Environment has also responded favourably to initial approaches and a letter16 from DG Environment G2 Environment and Industry points to potential collaboration with the EU Eco-labelling board, and provides and example of how to set up collaboration by attending a Co-operation and Cooperation Management Group meeting. This unit is also happy to contribute to working papers during the formation of the STSC. At the stage when all stakeholders are actively requested to identify funding sources, this unit is capable of providing information on how European Member states can use structural fund money to support eh STSC work program. National Governments supporting UNEP initiatives The STSC can appeal to either individual countries or a coalition of countries to champion the development phase. In each country the National Sustainable Development Council/Forum should be made aware of the process, and called upon to identify national level government departments and other national institutions or resident multi-nationals that my be interest in the process. Regional Authorities who have an interest in a global presence Several regions and even networks of regions exist that already support sustainable development. Many of these regions have sustainable development programmes, innovation programmes or tourism development programmes to which the STSC process will lend a global dimension. In Europe for example regions can access a percentage of structural funds allocation for global networking. The Regions for Sustainable Development Network (R4SD Network) is an example of a network of regions who could come together to support the STSC process. Private Foundations who can follow the Ford Foundation model of funding the FSC A strong development model already exists for private core sponsorship in the development of the FSC and the Ford Foundation. The Bellagio Forum for Sustainable Development17 may be a useful starting point for identifying private donors:

15 Country that does not belong to the EU. 16 Letter to Rainforest Alliance August 2006 17 http://bfsd.server.enovum.com/en/



‘The Bellagio Forum for Sustainable Development (BFSD) is an international network of grant-providing institutions striving to attain environmental balance, economic stability and social progress. The Forum brings together individuals from foundations and businesses to build trust, dialogue and effective partnerships.’18 A mix of funders The most likely scenario is based on a mix of the above funders, following the model that helped create the MSC. The multi-stakeholder approach is designed to work towards this outcome. It should be made clear to the whole range of stakeholders that the certifying bodies themselves are not in a financial position to fund their own networking and standards agreement processes, yet a common international approach is beneficial to all who are interesting in seeing measurable sustainability performance in the tourism sector. Funding Level Request Recommendations 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 shown

here on row 20 Figure B17: Funding Request Recommendations It should be noted that if the maximum funding recommendations are achieved, then the STSC will have a strong positive cashflow should its revenue streams develop according to plan. This will enable a high degree of security, as it will be able to draw down on its surplus either a) if it does not meet its revenue targets or, b) at the end of the funding period to cover the following five year funding needs, in which case success in the first four years would guarantee operations for the next five.

18 http://bfsd.server.enovum.com/en/ page accessed 1.12.06

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



Focus on revenues from STSC services (membership, accreditation, branding, training). With all programs the budget has been devised on the assumption that costs need to be covered by revenue from each program. Membership fees and numbers

Keeping the membership fees constant and the ratio of different membership categories constant, and assuming there is no core funding, table 1 shows the program's revenue requirements, and the membership targets required to meet these requirements: Figure B18: Calculating Membership Fees

Year 1 Year 2 Year 3 Year 4 Target revenue from membership fees

US$297,600 US$277,340 US$285,425 US$293,914

Number of STSC International members needed:

172 160 165 170

A second table shows the implications if a total of US$1.75 million in core funding support is received over the first three years of operations, as assumed in the WITH core funding scenario: Figure B18a: Calculating Membership Fees

Year 1 Year 2 Year 3 Year 4 Target revenue from membership fees

US$97,600 US$177,346 US$235,425 US$293,914

Number of STSC International members needed:

56 102 136 170

The proposed membership fees have been bench-marked against the similar programs of IFOAM and FSC. IFOAM now has approximately 750 members, and FSC 650. The analysis suggests two simple conclusions, if the assumptions about costs, donor funding, membership fees and ratios for the different membership categories are considered reasonable.

When looking at fees there are other lessons from the experiences of the ten (accreditation) organizations First of all, it is necessary to implement a transparent fee structure, so that it is clear to certifiers that want to apply for accreditation, exactly how much they will have to pay in application fees, accreditation fees, and annual ongoing accreditation fees. This transparency is important in order to maintain the credibility of the organization. Second, fees should be based on the annual turnover of the certifiers and not a .one for all. fixed rate, because that would make it relatively more expensive for small certifiers and certifiers from developing countries to become accredited than large certifiers from industrialized countries. Third, it is imperative to charge realistic fees, because it is almost impossible to increase fees at a later stage certifiers tend not to be willing to accept a fee increase after an initial period with a low introduction fee. Fourth, accreditation fees do not normally cover the expenditures related to the accreditation activities outside of the direct audit costs, so it is essential to get revenues from other sources that can subsidize the costs related to other activities such as standard setting, training, and marketing. Thus it is important with a differentiated fee structure, to apply several different kinds of fees. A differentiated fee structure also makes it easier to set up a fee structure that takes into consideration the geographic origin of the applicant certification program, as well as its financial size. From the study it is also clear that training (seminar, workshops and other learning activities) can be a very attractive revenue source. Another important benefit from training is the increased awareness of the need for socially responsible certification and accreditation, as well as the organization itself. STSC: Raising the standards and benefits of sustainable tourism and ecotourism certification 2003 p167



Firstly, an international membership of around 170 STSC members would be sufficient to support the membership program, including the costs of the STSC Board of Directors in the long term. Secondly, if core funding is received over the first three years of operations, the targets for achieving this level of membership appear achievable. Marketing In the case of the marketing program, costs will be covered by STSC Trademark Marketing Fees. Trademark Fees have been proposed in a variety of categories, for small, medium and large certificate holders, with different charges for organisations based in the different regions. Provision has been made for different fees being charged to two different types of certificate holder 'Type A' and 'Type B', on the assumption that the value of an STSC certificate will depend on the kind of business that the certificate holder operates. Where there is a high level of marketing value, one would expect to see both more certificate holders and a higher willingness to pay to use STSC marketing materials to promote the holder's certification. As for STSC International Membership, assumptions have been made about the ratio of certificate holders of different sizes, types and location in the North or South. These assumptions are shown in the tables: Figure B19: Calculating Trademark Fees

Annual Trademark Fee Type A Type B Type A Type B

small 50 50 25 25 medium 100 500 50 250 large 1000 5000 500 2500

Ratio of Trademark users of different categories

Type A Type B Type A Type B small 2 6 1 3 medium 4 12 2 6 large 2 6 1 3

Based on these assumptions the spreadsheet (Accreditation Fee Calculator.xls) automatically calculates how many certificate holders need to be paying to use STSC marketing materials each year in order for STSC to cover the full costs of its marketing program. The second version of the table allows a different kind of analysis, in which the ratios of fees for different users, and the ratio of users are kept constant, but the actual numbers of users are

The study also shows that branding by .selling. the right to use the accreditation organizations logo to industry members that are certified by an accredited certifier can be a very profitable revenue source as well as a very good marketing tool. There is, of course, a whole series of problems and conflicts attached to the branding issue, the most important of which are conflicts of interest and too much dependency on the industry. So it is important to be careful before starting to use branding in it purest form . companies would pay a fee to use the logo on their products. It should, however, be noted that this strategy might not work for a potential STSC, since the STSC name will not be selling large quantities of coffee or seafood (markets that already exist and markets where large companies try to distinguish themselves). A potential STSC will be operating in a currently limited market that at the moment is not very interesting for the larger operators in the tourism industry (Source: Søren Rasmussen, Albatros Travel A/S, pers . comm.). STSC Feasibility Report 2003 p167



varied. It is then possible to evaluate the impact of trademark user numbers on Trademark fees for the different categories. International STSC Standards The budget assumes that there will be one STSC Standards Working Group operational at any given time. Standards may be directly applicable to tourism service providers (future STSC certificate holders) or may be 'standards for standards' - i.e. a framework for evaluating standards developed by individual certification bodies. The scope of the standard(s) under development will vary over time. At some times the focus will be the development of new standards (e.g. for small operators, for accommodation, etc), at other times it will be on the review and revision of previously approved standards. A Standards Working Group is assumed to consist of 12 individuals from around the world, and to meet 3 times per year on average. Travel costs have been calculated allowing for the Standards Program Manager and an intern to attend to support each meeting. Discussion and approval of standards by the STSC International Standards Committee is assumed to take place at the time of the STSC Stakeholder Council meetings, at no additional cost. (This process should be subject to regular alternative costing of developing the standard with optimized internet use and minimized travel). STSC Accreditation Standards A challenge for STSC will be how to make sure that STSC accreditation is seen as a useful way to promote accredited programs. But the basic premise is that joining together within a common STSC framework will be to the advantage of participating programs. In addition to the development of standards applicable to tourism service providers STSC will need to develop standards or guidelines applicable to certification bodies and/or to its contracted accreditation body. It is assumed that a working group of 12 individuals would be required to develop, review and revise these standards, but that half of the participants would be from certification bodies, who would pay their own costs. It is assumed that the work load for this working group is less than for other standards, so the group meets twice per year The costs of developing and maintaining STSC international Standards and Accreditation standards and guidance will be covered by multilateral and national, public and private sector donor funding and by royalty payments payable by the STSC contracted accreditation body and passed on to its accredited certification bodies. It has been assumed that the full cost of developing and maintaining accreditation standards should be attributable to the Accreditation Body(ies) itself, but that 50% of the cost of developing STSC International Standards should be fundable from government and foundation donors. Standards Program In the case of the Standards Program, there are two major sources of cost in addition to the general overhead contribution: costs for the development of STSC accreditation standards, and costs for the development of STSC international standards to be met by the tourism service providers themselves. [In the case of accreditation standards, it is proposed that substantial costs should be covered by the accreditation/certification bodies themselves, since the standards are developed as the basis for the services they provide. In contrast, the development of STSC international standards applicable to tourism service providers should be an attractive project for 'project-based' funding. However the budget also recognises that the certification/accreditation business is built on these standards, and proposes that the certification/accreditation program should therefore make a significant contribution to their development and ongoing maintenance.



In summary, it is proposed that the full cost of developing accreditation standards be passed on to the accreditation/certification bodies, and that 50% of the cost of developing and maintaining STSC international standards be sought from project funding, and 50% from accreditation/certification bodies. This could be achieved in the fee level the STSC sets for outsourcing the accreditation, in which case the costs of developing standards started in the STSC-Partnership stage is paid for by the accreditation process established in the final STSC-Accreditation phase. . Training Program The training program is similar to the Standards Program in that the budget is based on a mixture of donor funding and service fees. However in the case of the Training Program it has been assumed that donor interest in support would be limited to the establishment of the Program, and not to any of its costs beyond three years. A budget has been proposed suggesting that donors contribute 75% of the cost of establishing the Program in Year 1, dropping to 50% in Year 2, 25% in Year 3, and zero in Year 4. In relation to management and fees, the approach is similar to the Accreditation Program, in that it is assumed that training worldwide would not be provided directly by STSC. Rather, STSC would develop core training materials and provide 'training for training bodies'. STSC-endorsed training bodies would then be permitted to market their provision of STSC training, with STSC's support. The costs of developing and maintaining the STSC training program in the long term are therefore covered by training fees, collected by STSC-endorsed training bodies from their trainees, and passed on to STSC itself. STSC maintains quality control by monitoring the training bodies, and by providing regularly updated training materials. As for the Standards Program, the total target for donors and training service fees can be calculated either with, or without, core funding: Figure B20: Calculating Trademark Fees

Year 1 Year 2 Year 3 Year 4 Target revenue from donors

US$199,200 US$115,170 US$60,856 US$0

Target revenue from training fees

US$66,400 US$115,170 US$182,569 US$256,914

NO core funding Year 1 Year 2 Year 3 Year 4

Contribution from core funding

US$200,000 US$100,000 US$50,000 US$0

Target revenue from donors

US$49,200 US$65,170 US$48,356 US$0

Target revenue from training fees

US$16,400 US$65,170 US$145,069 US$256,914

WITH core funding A table showing lines of Lines of Revenue Predicted for Each Program Area of STSC Operation is given in Section 3 ch 3.

6. Recommendation for STSC Work Programme: 1) Validate the business capacity-building strategy through detailed discussion as an agenda item, after full circulation of the document and sufficient consideration time.



5 Marketing Strategy – Growth and Development Strategies that Reflect Sectoral Conditions This section introduces the STSC marketing strategy, focusing initially on promotion of the STSC itself for funding purposes, the marketing for its client groups. It takes account of current global sustainability processes that have targets and timetables well suited to the STSC need to give itself and its clients a global profile. ‘While Chapter 6 [readers can get confused with specific numbered references to chapters in the feasibility study. please edit the quotes to avoid such confusion: outlines a proposal for introducing the STSC.s marketing strategy in all three phases (Network, Association and Accreditation), the recommendations presented in this chapter reinforce the benefits of the STSC communicated to the project team during the consultation activities. These recommendations can be used to lobby for the support of each of the following nine participating stakeholder groups (or target markets): 1) certification programs, 2) governments, 3) industry associations, 4) tour operators, 5) NGOs and consumer associations, 6) intergovernmental institutions, 7) donor and financial institutions, 8) accreditation organizations, and 9) tourists. The marketing strategy should also include lobbying these groups to become members of the STSC. See summary in Table 8.1. Recommendations for the promotion of products certified by programs that meet the STSC.s requirements for environmental and social responsibility are also included in this chapter, as well as recommendation on methods by which the STSC can deliver the proposed benefits to the nine stakeholder groups.’ (Feasibility study p275)

Figure B21: STSC Marketing Material already on the web – but who knows about it? Target markets Getting the STSC’s core message and information about its proposed services to the right audience is the key to a successful marketing campaign. Chapter 8 of the feasibility report (p275 -279) offers a multi-stakeholder approach to analyzing the marketing needs of the STSC. Its use of a nine key stakeholder classification model is very helpful in targeting the necessary actions to specific stakeholders. Certification bodies

1) certification programs 2) accreditation organizations 3) Service end-users

5. Marketing Strategy Growth and

Development Projects 2007 - 2012



Donors, Government and Intergovernmental Representation 4) governments 5) intergovernmental institutions 6) donor and financial institutions

Private Sector Intermediaries, tour operators tourism services 7) industry associations 8) tour operators

NGOS Consumer associations 9) NGOs and consumer associations 10) tourists

These groups form the target markets for the STSC marketing strategy. The Stakeholder Grid and Multi-stakeholder Road Map (see Section 2 Ch 7 & 8) provide useful tools to organise the strategy’s implementation. Designing the networked marketing strategy for the STSC A multi-stakeholder, territorially networked marketing strategy is recommended, using the global sustainable tourism knowledge network framework (in which participants are categorized in a stakeholder grid) to provide a uniform marketing network structure for each region. In each region the STSC and supporters build an alliance of stakeholders, bringing them into the knowledge network. Partnership agreements can then be signed on a campaign by campaign basis. This gives an immediate and visible return to those funders and sponsors backing the STSC process. These territorial networks can then be linked to a global tourism value chain model (thereby bringing stakeholders into a common global market place). In this way the STSC can reach all its key stakeholders across the globe, and in doing so produce targeted marketing materials for each part of the grid. The key to STSC's success will be its ability to market itself, and its services, as providing value added to its many customers. Its different programs each have different fee paying customers, summarised in the table below:

STSC Program Customers who pay direct to STSC for service

Affected 'customers of customers'

Governance and institutional • STSC International members

• Corporate and trade sponsors

• Donor foundations and governments

• Contracted accreditation bodies

• STSC-accredited certification bodies

• STSC-endorsed trainers • STSC-certified tourism

service providers International standards • Corporate and trade

sponsors • Donor foundations and

governments • Contracted accreditation

bodies

• STSC International members


• STSC-endorsed trainers • STSC-certified tourism

service providers

Accreditation • Contracted accreditation bodies

• STSC International members

• STSC-accredited certification bodies • STSC-certified tourism

service providers Training • STSC endorsed training

programs • Donor foundations and

governments


• STSC-certified tourism service providers



The STSC Marketing Program should design its 'projects' on the marketing of two key service areas: i) marketing of services provided directly by STSC itself; and ii) marketing of services provided by tourism service providers certified by STSC accredited programs. This is proposed so that STSC concentrates its efforts on the clients who will be most directly exposed to the market benefits of STSC-certification - the certificate holders themselves. If certificate holders perceive a benefit from their certification, then they will seek out service providers who provide commercial services (certification, training) in support of this. The certification bodies and trainers themselves should be expected to market their own services, supported by material generated by STSC. Aims of the Strategy Although the initial marketing of the STSC is aimed at increasing membership and accessing funds, the overall marketing effort will include a strategy for increasing numbers of tourist service providers with STSC accredited certificates in all global regions. The marketing strategy recommended here starts immediately in the network phase, aiming to build up membership and supporters, then moves to the partnership marketing phase, aimed to raise core funds, and finally the accreditation marketing phase, aimed at promoting certificates to a global audience, as well as raising the visibility of the STSC itself (see the seven step marketing programme below detailed below). The marketing strategy that the STSC uses to get its message heard, understood and then acted upon is crucial to the success of the business plan. The marketing strategy concept shown below offers a seven step process linked to the regionally divided and targeted stakeholder groups.

A Seven Step Marketing Program for Raising the STSC’s Profile The STSC Marketing Strategy has three key goals that need to be matched to the each stage of the marketing phases:

A) Increase visibility of the STSC to establish capacity-building partnerships B) Increase visibility of certification bodies and their certified products and services to

establish a global market place presence C) To further the dissemination of the concept of sustainable development in the tourism

sector A seven step process has been developed to achieve these three goals as the network, partnership and accreditation phases unfolds in the period of 2007 to 2012.

1. The STSC Temporary Steering Committee updates a market-friendly profile of the STSC, clearly formulating its goals, mission, areas of competence and planned activities.

2. Using the stakeholder grid of the Sustainable Tourism Certification Knowledge Network

(see output 7), lists of targeted contacts can be drawn up.

3. Simultaneously, a set of key issues related to potentially interested parties (many of which have been previously identified in the feasibility study p70-78) can be also be drawn up (bearing in mind the need to raise core funds and attract supporters is given priority). The marketing focus will establish linkages to the overall WSSD sustainable development process, particularly between tourism certification and the Sustainable Consumption and Production (SCP) process and the Corporate Social Responsibility (CSR) process.



4. The key stakeholders and issues are bought together in each phase in thematic

marketing alliances and sub networks, prioritised according to the development needs of the STSC process. In the network phase, the aim is to build up membership and supporters. In the partnership marketing phase, the aim is to raise core funds, and in the accreditation marketing phase, the aim is to promote certificates to a global audience, as well as the raising the visibility of the STSC itself.

5. Existing regional events and stakeholder actions and existing communications systems

are taken in to consideration. In particular key global events in the tourism sector and UN calendared actions should be utilized in planning the marketing campaigns with the year of 2012 (WSSD + 10) being the focal point. Building alliances and running partnership marketing campaigns should be given a high priority. Each region would develop its own plan in relation to the other regions, thereby providing global coverage.

6. Each thematic grouping and its corresponding network of stakeholders develops a

programme of action, executed through the sub-global networks and their tourism stakeholders. Four marketing projects have been designed to achieve this.

Promotion of the STSC itself Promotion of STSC Service Providers The Mark-IT Capacity Building Project WSSD SCP CSR Programme

7. Stakeholders can choose significant tourism sector regional events to contribute to a

sequence of calendared activities that offer a framework for stakeholders to collaborate with the global STSC process. All programmes of action benefit from the core global STSC marketing system and its resources, which include the development and maintenance of a one stop global sustainable tourism certification knowledge network and virtual market-place of certified products.

It should be noted that the marketing efforts of the STSC commence at the same time the five year review period of the Johannesburg WSSD process. In the wider five year countdown to 2012, the STSC offers the UN Major Groups stakeholders a coherent tourism programme should they wish to contribute to meeting their SCP or CSD targets. Furthermore the programme of Structural Funds Allocation for the same period starts up in Europe. Many funding lines have SME development, global networking, quality systems, etc as part of their frames of reference. Importantly, as the capacity-building sections says, European regions can apply for up to 5% of their structural fund allocation for international communications.

Building a Marketing Alliance among ‘the Coalition of the Willing19’ Regions who favour doing business sustainably are the STSC natural allies, as are those NGO’s, corporations, unions, and national governments who are committed to sustainable development, or working in related sub-issues such as fair trade, green purchasing, or habitat coservation. The millions of consumers who are driving the demand at the market end are also a key target audience when building marketing alliances. At the World Summit on Sustainable Development 2002, over 27,000 NGO representatives, 193 governments and over a thousand corporate businesses stood up to commit themselves to

19 Term used at he WSSD to describe what was necessary for responsible stakeholders to forge in order to achieve sustainable development



sustainable development. Tourism was officially placed in the UN Plan (Item 43 JPOI), as well as having its cross-sectoral presence in many other resolutions. Making partnerships among these organisations will prove to be an effective method of reaching an expanded and sympathetic audience for the STSC’s message. The Multi-stakeholder Roadmap shows how the STSC marketing strategy unfolds over time and space, with various stakeholder events reflected the seven proposed steps. In the recent (October 2006) UN standagainstpoverty.org global action on the Millennium Goals, 23 ½ million people ‘stood up’ at the same time to enter the Guinness Book of World Records as the most amount of people who have stood up against poverty at the same time20. Reaching these individuals (who are likely to be making tourism-centred decisions or be affected by tourism development processes) and those of the LOHAS market21 .and similar consumer bases in Europe, Asia and Africa will help make the match between a globally –accredited certified product/service and the consumers who wish to choose one...

The Mark-IT Capacity building process - This project is focused on networking the Marketing Technical Infrastructure across networks and regions. The MARK-IT regional capacity building programme is designed in anticipation of the development in internet and communications technology. It will give the STSC capability to work with the right information tools to do its global business. All STSC stakeholders stand to benefit from this as it will offer a global communications and marketing platform that will be using the most up to date and cost effective mass communications techniques to reach its vast global audience. Mark-IT will be led by the IT officer in charge of governance and marketing communications systems. Its goal is to give the STSC full capacity to reach all WSSD sustainable consumption and production stakeholders in the tourism sector by the year 2012.. That will be achieved by taking the STSC stakeholder grid and providing members with a coherent communications system. The MARK-IT technology capability of each stakeholder is budgeted to be raised through software, hardware and training packages conceived within the STSC’s information strategy. To provide the knowledge for discrimination to the consumer is a first step towards changing towards more sustainable patterns of consumption, which, in turn, may challenge businesses and governments to offer more sustainable patterns of production in the tourism sector as well. There is no need to reinvent the wheel, and the STSC recognises the existence of several sustainability initiatives that can contribute to this marketing effort. There is a need for a common global portal which can service the four global sub-regions. Synchronisation of activities through the portal will lead to improved use of resources and greater synergy. The cost of setting up these systems for stakeholders is included in the business plan in Section B ch 4 under the heading IT External Costs. An IT officer is also envisaged to work on a part time and then full time basis in order to have in-house IT capability. Section C ch4 shows how the DestiNET partnership has offered to deliver many of these functions. Whatever the degree of sophistication of the networking solution, technical innovation does influence network technology design.

20 www.standagainstpoverty.org 21 Heath and Sustainability segment of (mainly US) consumers choosing more environmentally- friendly or socially positive products and services



Discussion Point – How do the new IT networking possibilities affect a global organisation ? Throughout this business plan there are several activities and budget lines that involve travel and meetings. The STSC would choose well to take advantage of setting up a global network with the technological innovations in communications now widely available. Technical capacity building opportunities include: Web Portals (gateways to websites); VOIP (the Voice of Internet Protocol that allows us to use computers as telephones); internet video-conferencing; Internet Mapping (.eg Google Earth); Internet search engines. Skype sells itself with the slogan ‘Now the whole world can talk for free’. It is even already possible to video-conference across the globe for free. By using this technology, the opportunity exists for the STSC to devise and implement a radical communications structure that would minimize meeting costs. Setting the example of saving on meetings, travel and accommodation is perhaps the best reason why to choose such a system, but also funders will be looking for value for money, and consumers will not appreciate the image of the STSC generating unnecessary global air traffic. Whilst it may be difficult to change the need for travelling to other peoples events, the STSC has direct control over the following estimated number of journeys made Directors Meetings 12 x 3 x 4 = 144 (three times a year) Stakeholder Council Meetings 60 x 1 x 4= 240 (annual meeting) Global Knowledge Network Meetings 100 x 1x 4 = 400 ( annual meeting) regional (sub-global) meetings 4 x 4 x 50 = 800 (annual meeting) Total 1588 These are the number of journeys planned as a minimum estimate, restricted to core network formation and governance functions It could be possible to reduce these journeys to: Directors Meetings 12 x 1 x 4 = 48 (once a year) Stakeholder Council Meetings 32 x 1 x 2= 64 (once every two years) Global Knowledge Network Meetings 100 x 1x 4 = 400 (annual meeting) Regional (sub-global) meetings 4 x 2 x 50 = 400 (bi-annual meeting) Total 912 This saving of 676 potential journeys represents a reduction in costs allocated to travel and accommodation of $676,000 if each journey is averaged in at $1000 US. More savings could be anticipated as these new communications channels become more familiar. To achieve this it would be necessary to ensure the STSC has full global communications capacity (see the Mark-IT Capacity Building Program above).



The Marketing Message Public administrators, business people and consumers are currently overwhelmed by a wide range of information from a variety of viewpoints. They are often ill-equipped to see through the media’s potentially conflicting messages to the reality of the tourism industry itself or reliability of the information it generates. In this information haze, the STSC accreditation process should be seen to offer a transparent and trustworthy mark of quality, recognisable in the global market place. The following phrases provide kick off suggestions to stimulate the creation of the STSC’s marketing image. The key example catch phase is: Figure B22: Slogans for the STSC

‘STSC - Promoting Certified Sustainable Tourism in a Global Market Place’ This single line encapsulates the substance of the STSC core mission, highlighting the messages of choosing certified products and services and the global market in which they are operating. This message should be reinforced by a second phrase:

‘www.stsc.org - for tourism information you can trust worldwide’

which provides the reader with a web reference point for further information as well as emphasising trustworthiness and the international nature of the STSC. The sample image here also provides a concrete example of the type of joint marketing campaigns and cross-marketing strategies recommended in the willingness to pay survey (see bibliography) that has been produced concurrently with this report. Such campaigns would of course require STSC membership of ISEAL and the full cooperation of other accreditation bodies. It would be useful to approach ISEAL to set up a marketing dialogue to address this issue for the benefit of all its members. The use of this approach for the tourism stakeholders is particularly attractive, as the sector is know for its multi-sector activities, and the common promotion of the whole range of international standards throughout the entire supply chain is possible. Hence catering businesses could be make us of organic standards, destinations with forest could implement FSC certification, and tourism visitors could look at a holiday package to see how many parts of its offer have been certified by ISEAL members or other standard setting bodies.



The image below demonstrates a partnership approach to cross-marketing. It builds on existing consumer understanding of the FSC reputation, to lead readers to an understanding of what the STSC can do for tourism. A common leit-motif for the two sector is used to integrate the two sectors, ie pristine nature.

Figure 2B23 Example Poster 2 – See the Wood and the Trees … A competition can be held between knowledge network members to come up with the slogan for each phase. It is likely that the global sub-regions would be best placed to run their own version of the core campaign to optimise the socio-cultural quality of the marketing operation to its client audiences. At the same time the issue of logo development should be addressed (see Brand Development below) In this way the knowledge network should ‘own’ the image set out by the STSC as part of a joint creation process. The costs of this process are also minimized by reduction in consultancy costs.

STSC Promoting Certified

Sustainable Tourism in a

Global Market Place

IIff yyoouu wwaanntt ttoo sseeee tthhee wwoooodd aanndd tthhee ttrreeeess,,

ssuuppppoorrtt aann FFSSCC 44 TToouurriissmm –– tthhee SSTTSSCC

www.stsc.org for tourism information you can trust

worldwide



Brand Development At some stage the STSC has to take on the issue of developing its visual image, whether that is a slogan, a logo, colour scheme, lettering, etc. As suggested above, a competition between knowledge network members and supporters will be the best way forward with this issue. This strategy document makes no suggestions as to the nature of the design, though it is noted that both FSC and MSC have made use of a tick in their designs, which may be useful to replicate in order to continue the idea of the STSC’s similarities to these other accreditation bodies. Again, it is recommended that a competition can be held between knowledge network members to come up with the global logo, as a sort of Premier League/World Cup of the slogans stakeholder competitions. The cost of the branding design process are envisaged in the plan (see Excel sheets – Partnership Phase.xls. This work is envisaged as part of the partnership phase. The overall marketing budget that will carry the brand is clarified below: The Marketing Targets Budget The table below shows estimates of target figures and incomes (to be achieved by the point of self sufficiency in 2013 that are related to the success of the marketing activities. The targeting to the different categories of stakeholders needs to be focused on producing results such as these in terms of membership numbers, accredited certification bodes, and certified end-users using the training & marketing services.

Figure B26 Marketing Estimates for Service Use Marketing Targets 2009 2010 2011 2012 2013 US$ Target Figures for STSC Client Numbers Estimates of End-Users STSC Members 162 150 155 159 159 275,392Number of attendees for Training Events 250 427 677 954 954 238,392Number of Accreditations 16 22 29 30 30 596,000Trademark Marketing Fees 313 374 490 607 607 612,830

Running the STSC Campaign The budget to achieve this is a complicated mix of legal, consulting and marketing costs. The fact that marketing is an entire programme area of the STSC means that there will be the costs of a marketing programme director and associated office costs. This director will be responsible for a $2,139,000 USD budget to promote and market the benefits of STSC membership, training and accreditation programs, which itself belongs to a 4 million dollar project allocation to legal fees, travel. The marketing program is designed to carry the cost of promotional materials for the internal STSC programs, but does not carry the cost of developing basic program materials - these are allocated in each program's own budget. The director and board will decide how to allocate resources to each step of the marketing strategy. On a project by project basis, the key stakeholders can be targeted. In particular budgets have been specifically allocated to promote STSC-certified companies (Project 4 of the Marketing Spreadsheets), and to participate in the WSSD SCP/ CSR Processes, which has a 944,000US

STSC Promoting Certified

Sustainable Tourism in a

Global Market Place



budget allocation to be spent in relationship to the UN Commission for Sustainable Development’s programmes. Such a budget is considered to be vital to having the power to attract membership and end-users, and the reader is reminded of the global nature of the STSC’s business, which means that given the six year time frame and the four fold division of the STSC into global regions, this budget will not go so far, and needs to be seen as money that could be doubled by matching funding at the national or regional levels. Within the STSC, the marketing budget is supported by legal budgets and travel and meetings budgets that can facilitate stakeholder participation and take-up of services. A full table is provided below, showing costs related to the marketing campaign step described in this section.

7. Recommendation for STSC Work Programme: 1) Adopt the Marketing Strategy- as recommended in this Section B ch 5 and as timetabled in the Multi-Stakeholder Roadmap - as the guidance document for the STSC marketing programme.



Figure B27: Marketing Budget - Revenue and Cost Analysis

Accreditation Phase Marketing Programme

Total Year 3 Year 4 Year 5 Year 6

Marketing Projects combined totals US$ US$ US$ US$ US$ Marketing Total Expenditure 2,944,199 407,400 486,370 636,864 1,413,565 Marketing Programme Projects 1 Marketing Team & Overhead 750,724 181,200 177,170 192,164 200,190 2 Promotion of STSC 130,000 40,000 30,000 30,000 30,000 3 Promotion of STSC Service Providers 923,475 136,200 219,200 234,700 333,375 4 Mark-IT Capacity Building Project 140,000 30,000 30,000 30,000 50,000 5 WSSD SCP CSR Programme 1,000,000 20,000 30,000 150,000 800,000

Breakdown of Marketing Work Programme Costs

750,724, 25%

130,000, 4%

923,475, 31%

140,000, 5%

1,000,000, 35%

1 Marketing Team & Overhead

2 Promotion of STSC

3 Promotion of STSC ServiceProviders4 Mark-IT Capacity BuildingProject5 WSSD SCP CSR Programme



6 Contacts and Sources for Information and Support – a Stakeholder Grid This output contributes to the model of an evolving global knowledge network for the STSC organisational framework seen in chapters 2 & 3. It does this by providing a Stakeholder Grid from which a comprehensive overview of organisations can be seen and whose detailed contact information and organisation profiles can be made available. This effectively maps out the stakeholders who make up the knowledge network and who may choose to enter into the UN Type II Partnership process. The registration form for Type II partnership is provided at this point. Building on the feasibility report classification and identification of stakeholders, a tourism certification and accreditation knowledge network has to be defined in the stakeholder grid below. This provides STSC staff and members with a common tool to manage and monitor all stakeholder profiling and contacts. At this stage a short list of initial stakeholders has been entered into the grid, composed mainly of those organisations who have provided supporting letters, STSC temporary Steering Committee Members, and key organizations contacted in the course of this consultancy who may have a pivotal role to play.

Figure B28: Stakeholder Grid for the Global Knowledge Network on Tourism Certification

Stakeholder Category

Africa Americas Asia & Pacific Europe Global

A Certification bodies

A1 certification programs

Alianza Verde/Green Deal, Guatemala CTS CA – Consultores de Turismo Sostenible, Venezuela Green Seal USA SmartVoyager, Ecuador Sustainable Travel International, USA SUTUR – Sociedad Uruguaya de Turismo Rural, Programa de Certificación de Turismo Rural

Ecotourism Australia, EcoCertification

ECEAT - European Centre for Eco Agro Tourism. Natures’ Best, Sweden. The VISIT Association

Green Globe 21

6. A Stakeholder Grid of Contacts for Information

and Support



Sostenible

A2 accreditation organizations

ISEAL Alliance

B Donors, Government and Intergovernmental Representation

B1 governments B2 intergovernmental institutions

UNWTO UNEP Sustainable Tourism Taskforce

B3 donor and financial institutions

Bellagio Forum on Sustainable Development

C Private Sector Intermediaries, tour operators tourism services

C1industry associations

Federation of Tour Operators

C2 tour operators TUI Nederland.

D NGOS Consumer associations

D1 NGOs and consumer associations

EKO-Support, Chile. Environmental Defense. FEDEC - Federación Colombiana de Ecoparques, Ecotorismo y Turismo de Aventura. FUNDESA - Fundación para el Desarrollo de Guatemala. ASEC – Asociación Ecuatoriana de Ecoturismo. Instituto Nacional de

ECOTRANS Rainforest Alliance TIES - The International Ecotourism Society Global Reporting Initiative



Ecología, Mexico Mesoamerican Ecotourism Alliance. MIF - Multilateral Investment Fund, Sustainable Tourism Cluster. Plan 21, Argentina. Program for Belice Secretaría de Medio Ambiente y Recursos Naturales, Subsecretaría de Fomento y Normatividad Ambiental, México. Universidad San Ignacio de Loyola, Certificación de Sostenibilidad Turística del Perú* USAID/MIRA, Honduras*

D2 tourists

The following list of those involved in the consultation can also be entered into the grid to arrive at a first picture of the global knowledge network contact individuals. Karin Kreider RA [email protected] Richard Z. Donovan RA [email protected] Tensie Whelan [email protected] Nancy Vallejo [email protected] Diane Jukofsky RA [email protected] Henk Campher RA [email protected]



Annemieke Wijn RA [email protected] Brendan May Done [email protected] Bernward Geier RA [email protected] Chris Wille Tania Arantes Ministry of Tourism, Brazil [email protected] Amos Bien The International Ecotourism Society, Costa Rica [email protected] Alice Crabtree TIES Asia-Pacific, Australia [email protected] Heiko Crost Fee (Blue Flag), Germany [email protected] Alfredo Dueñas SmartVoyager, Ecuador [email protected] Reinaldo Figueiredo ANSI Accreditation Department, USA (observer) [email protected] cc: Steven Bipes [email protected] Herbert Hamele Ecotrans, Germany [email protected] Ariane Janer Instituto Hospitalidade, Brazil [email protected] Naut Kusters ECEAT-Project, Netherlands [email protected] Cathy Parsons Green Globe Asia Pacific and PATA’s Sustainable Tourism Committee, Australia [email protected] Lois Peeler Aboriginal Tourism Australia, Australia [email protected] Jose Augusto Pinto PCTS Brazil [email protected] Regina Reyes Green Deal Guatemala [email protected] Jennifer Seif FTTSA, South Africa [email protected] Chris Thompson UK Federal Tour Operator, FTO [email protected] Neel Inamdar Conservation International, U.S.A. [email protected] David C. Gibson Representing the Africa Travel Association [email protected] cc [email protected] Michael Conroy Yale Program on Forest Certification



[email protected] Jose Luis Cabada Representing USTOA [email protected] Harro Boekhold Representing VISIT [email protected] Eugenio Yunis UNWTO [email protected] Stefanos Fotiou UNEP – Sustainable Tourism Task Force [email protected] Paul Hohnen/Saun Gilbert Global Reporting Initiative p@hohnen,net cc: [email protected]. Benjamin Caspar DG Environment [email protected] Paolo Meozzii EEA [email protected]

8. Recommendation for STSC Work Programme: 1) Agree on the multi-stakeholder and territorial classification system to be used by the

STSC 2) Adopt an expanded (more filled in) stakeholder grid as the basis for the global

knowledge network on tourism certification



7 Timetabling the implementation programme – the 2006 -2012 Multi-Stakeholder Road Map This section shows A road map for the 2006 -2012 process showing key project targets, milestones, accompanying stakeholder responsibilities and duties and accompanying documents and events. The basis for this road map is the multi-stakeholder division linked to the STSC 3 stage process. All tourism stakeholders are shown to link to the process through following their own interest in partnership with others linked via overarching themes such as the Sustainable Consumption and Production (SCP) and Corporate Social Responsibility (CSR) and actioned in sub-programmes. Targets of the Johannesburg Plan of Implementation can then provide incentives for stakeholder action. The STSC can use its phased development structure to show a series of milestones towards 2012. Stakeholder contributory activities can then be evaluated at the 2012 WSSD review.

Multi Stakeholder Roles Intergovernmental Govts, Donor Orgs (use full wording) Positions of key intergovernmental stakeholders should be clarified during the discussions of this report. Their policy initiatives are essential to STSC success. There are several policy lines in which the STSC can be addressed. These need to be highlighted with each stakeholder. The UN WTO repeats its 2004 position on the development of the STSC, in which members states stated they neither need or want a global certification body at this time, nor wish the UN WTO to spend time and resources developing one. The relatively slow uptake of certification processes by industry as demonstrated by the low number of certified businesses does not justify such efforts. The bulk of companies have not been convinced, with the private sector preferring the development of quality standards with its own momentum on the basis of voluntary self-responsibility. Mandatory regulation of the industry via legislation is opposed on this basis. Meanwhile, in the public sector, national or regional certification processes are currently under formation and lack market acceptance or market penetration. Thirdly, NGOs are pressing for very high standards of international conformity and assessment protocols, in which the certification processes can often be seen as costly, resource intensive and time consuming. As such the STSC has been seen to be outside the current UNWTO programme of work, given the background of the resource constraints of that programme. This will only change if a number of member states to intervene and ask for the WTO to support the STSC. Furthermore, within the UNWTO a new development has occurred since 2004 in which the World Committee on Tourism Ethics has been painstakingly established as a world body, democratically elected, and highly focused on business and public sector sustainability. In the process of establishing the committee there has been a high interest in the issue of standards and certification of sustainability processes for the tourism sector. The issue of STSC has not been put in front of the committee. If the STSC is presented and then favourably considered, the UNWTO can review its strategy of engaging in the STSC process. Meanwhile, given the numerous cross-overs and common issues faced by UNWTO and other global organisations in this field, (in particular other UN agencies such as the CSD and UNEP, and at the sub-global level, the European Commission and the EEA), the establishment of a

7. A Multi-Stakeholder

Road Map 2007 -2012



global knowledge network on the issue of sustainable tourism certification is beneficial for all concerned. Inter-governmental Stakeholders have to show more coherence policy making, and the STSC phased initiative enables this to happen across a wide range of institutions. With regard to UNEP, their Sustainable Tourism Task Force is a key partner, whose terms of reference include a strong focus STSC issues. The following minute 22 offers a clear step forward with regard to the fundamental basis of a successful STSC mission in partnership with UNEP. ‘2.2. Labels, standards and certification processes for sustainable tourism. A working paper would be developed focusing on a review of established standards and certification processes for sustainable tourism, and on measuring their effectiveness and impacts on sustainable tourism. The review will identify potential needs for harmonization/coherence of standards, and provide recommendations on a range of actions (criteria, multi-stakeholder engagement, principles, etc.) to improve and strengthen sustainable tourism certification schemes at national, regional, and international levels. A focus on ecotourism, heritage labeling and heritage management could also be considered. Lead member: UNEP could undertake the development of a first draft of the working paper and then initiate an on-line consultation with Task Force members. Participants: All Task Force members. France, Croatia, OECD, Costa-Rica, TIES, IUCN, WWF and UNESCO expressed a more precise interest to participate in this activity’ Clearly the STSC process can be used by UNEP to achieve this review, and thereby add further information for stakeholders to move the STSC mission forward. One section of the European Union has also responded favourably to initial approaches. A letter23 from DG Environment G2 Environment and Industry points to potential collaboration with the EU Ecolabelling board, and provides and example of how to set up collaboration by attending a Co-operation and Cooperation Management Group meeting. This unit is also happy to contribute to working papers during the formation of the STSC. . At the stage when all stakeholders are actively requested to identify funding sources, this unit is capable of providing information on how European Member states can use structural fund money to support eh STSC work program. Other EU sections such as DG Enterprise Tourism Unit and SME units and DG Development and DG Trade should also be brought into the discussion. In particular, the Sustainable Tourism Group organised by DG Enterprise should be made full aware of the initiative. Their publication an ‘Internet Guide to Tourism Sector Funding’ is a major resource for use by the STSC in order to pinpoint actual funding mechanisms. Finally the central role of National Sustainable Development Forums and national tourism forums should be made explicit for the whole STSC process, with a full engagement plan at the sub-global level to involve all sub-global national councils in coherent actions. Business & Industry Businesses across the world are being increasingly polarised between the global corporations and regionally- or locally-based SME/Micro-Enterprises. A common requirement for the success of both scales of enterprise lies in a sustainable regional economy. At this level, a certain interdependence exists, with regionally sourced products and services and sustainable regional consumer markets securing the operational environments of multinational supply

22 First International Meeting of the Marrakech Task Force on Sustainable Tourism Development Paris 18-19 September 2006 Final Report 23 Leetr to Rainforest Alliance August 2006



chains. There is therefore a strong business case for strengthening of sustainable regional economies through certification of the tourism value chain. An evaluation of the Tourism sector’s Corporate Social Responsibility Programme should be undertaken, looking for market opportunities brought about by the use of certified products in the supply chain. The TOI programme and other sustainable development processes undertaken by the corporate and SME business sectors need to be brought into the discussion of how to green the sectors supply chains in a transparent and profitable manner. During the initial stage, a clear link to the Global Reporting Initiative’s 2006 Guidelines dissemination process will help bring corporate sponsors and the STSC goals one step closer. The same can be said of a WBCSD Membership Awareness campaign. Conference support for STSC meetings is a very pragmatic form of capacity-building the STSC, and could be undertaken in partnership with national government and intergovernmental events Identification of business funders and an assessment of in-house resources that can be contributed by a range of sponsors who have an interest in sustainable tourism is undoubtedly one of the key roles that other partners will wish to see industry play. Voluntary regulation of social and environmental impacts made by the sector remains the likely climate for policy making, and into his climate the STSC is promoting exactly those tools for businesses to show their willingness to contribute to more sustainable consumption and production patterns. Systems such as the Federation of Tourism Operators (FTO) certification system provide existing examples of this market-based approach, in which case the STSC can help provide the impartial validation of such systems thats helps win consumer confidence and market credibility. NGOs & Other Civil Society Major Groups24 NGOs, Trade Unions, Women’s Groups, Youth groups, Farmers, Indigenous People, Scientists and Academics all have shown considerable interest in having a sustainable tourism process. Often these groups have lead the way in showing the need for adopting more responsible tourism practices, but have lacked the means to implement their aims. Ecotourism has been one particular field in which certification proves to be of high interest form supplier all the way to consumer. Identification of best practice by NGOs and other civil society groups provides governments and business with models of how tourism can truly be made more sustainable. The STSC initiative throws a global net over all those developing countries in which tourism is expanding or is seen to be a cornerstone of development policy. NGOs are often very active in these countries at the project implementation end, or involved in monitoring the supply chain, and should play a key role in the debate regarding standards, the delivery of learning resources, and targeted marketing campaigns.

Certificate Bodies, Accreditation Organizations Certification bodies and accreditation organisations are the focal point of STSC core activities, since it is their take up and delivery of the STSC accreditation system that is the substance of the STSC core activity. The training, standards review, support and marketing functions are also primarily targeted at this stakeholder grouping. A full and active participation in the STSC partnership organisational process at global, sub-global, national and (sub-national) regional levels is required. This will enable certification bodies to look up at global standards and pass the message on to regional and local certificate end-users, showing how they match up in an global market place. Participation in membership, training events, and marketing programs is essential, as the STSC structure is designed to capacity-build

24 UN categorisation of stakeholders in the Agenda 21 process.



this stakeholder group. The work to be done on standards agreements is the pivotal area of activity, and one in which certification bodies are required to find a common understanding on which the entire STSC functionality will depend.

From a Common Vision to Coherent Action – A Multi-Stakeholder Road Map The table below provides a view of the different stakeholder actions exemplified above. When combined with the STSC process, the table shows a coherent way of working together to achieve both particular and common goals. A series of milestones in the STSC process give all stakeholders a clear view of what needs to be done.

Figure 29 A Multi-Stakeholder Roadmap for the STSC 2007 -2012

Stakeholders

Milestones

Date

Intergovernmental

Govts, Donor Orgs

Business &

Industry

NGOs &

Other Civil

Society

Major

Groups

Certificate

Bodies,

Accreditation

Orgs

STSC Process

Synchronisation of Processes, Meetings and Actions

Consultancy

Evaluation.

Enlarged

temporary

STSC adoption

on work

progamme.

2007 Signing

of Members to

Global

Knowledge

Network on

Sustainable

Tourism

Jan –

June

2007

Presentation to

Marrakesh Sustainable

Task Force Programme

of Work.

UNWTO Global

Presentation to Ethics

Committee Programme

of Work.

Assessment of EU

Structural Funds

Allocation to MS and

Regions.

EU Ecolabelling Board

Co-operation and

Cooperation

Management Group

meeting.

UNEP review of

Evaluation of

Tourism CSR

Programme.

Link to GRI

2006

Guidelines

Dissemination.

WBCSD

Membership

Awareness.

Conference

Support.

Knowledge

Network

participation

Establishment

of

Coordinated

Awareness

Raising

Process

among all

stakeholders

at different

territorial

levels.

Knowledge

Network

participation.

Active

Participation in

STSC

partnership

organisational

process at

national and

(sub-national)

regional levels.

Knowledge

Network

participation

Eg Diary Date UNEP ST

TASKFORCE MEETING 12 -

14 March 2007.



certification field.

Conference Support.

National Sustainable

Development Forums

Contacted

Knowledge Network

participation

Conference Support

Network Phase

Unifying global event involving global sub- regional events formally marking the

establishment of the global knowledge network on sustainable tourism certification

Seed funding received for network and partnership network phase

Call for

Partnership

Members.

Establishment

of Training,

Accreditation

Standards

Review and

Marketing Sub-

groups

July

Dec

2007

Identification

of Funding

Channels.

Assessment

of Resource

Contribution

Identification

of Funding

Channels.

Assessment of

Resource

Contribution

Identification

of Funding

Channels.

Assessment

of Resource

Contribution

Identification of

Funding

Channels.

Assessment of

Resource

Contribution

Partnership Phase

Creation of STSC Partnership with elections to

Multi-Stakeholder Executive Board 2008 and Management Sub-Groups.

Increased funding received for partnership network phase

End of Year Funding and In-Kind Contribution Assessment

Standards

Review and

Agreement.

Training

Programme

Development

finalised –

pilot

completed

2008

STSC promotion among

member states

SCP for Tourism

Programme Awareness

Raising actions.

National Sustainable

Development Forums

Contacted

STSC

Promotion

among

member

business

networks and

enterprises as

CSR action

Participation

and

cooperation

actions

targeting

tourism

sector

Participation in

Standards

setting

and

Establishment

of working

accreditation

process



Dissemination

channel

operational

Accreditation Phase

Full Funding Commitment signed with between Partnership members

Establishment of final Accreditation Phase Governance body composed of

Knowledge Network Membership base Multi-stakeholder Council Board of Directors

and Executive Staff

Standards

Review and

Agreement

Staff

Appointments

STSC Work

Programs

activated.

First

Accreditations

Marketing

Campaign

2009

Members SCP

framework of

programmes structured

to include Sustainable

Tourism actions on

harmonisation of

standards and

certification promotion

Championing

Marketing of

STSC

alongside

government

agencies in

national

initiatives

Supporting

STSC

dissemination

at grassroots

levels

Supporting

STSC Standards

Agreement

processes.

Signing up to

STSC

accreditation

training and

marketing

processes

Coordinated global calendar of training, marketing and awareness events

Standards

Review and

Agreement

Staff

Appointments

STSC Work

Programs

expanded

across global

sub regional

networks

First

Accreditations

Marketing

Campaign

2010

Strengthening of

Members SCP

framework of

programmes on

Sustainable Tourism

actions continued

harmonisation of

standards and

certification promotion

Championing

Marketing of

STSC

alongside

government

agencies in

national

initiatives

Strengthening

sub-global

networks.

Supporting

STSC

dissemination

at grassroots

levels

Signing up to

STSC

accreditation

training and

marketing

processes



2011

Establishment of

Preparation Groups for

WSSD + 10 Target

Review

Preparation of

programme of

events for

WSSD + 10

Promotion of

WSSD + 10

review

targets

Signing up to

STSC

accreditation

training and

marketing

processes

Approval of and commitment to coordinated global calendar of training, marketing and Awareness-raising events in 2012

Full participation in World Summit on Sustainable Development + 10 Year of Tourism Sector CS(E)R/SCP Activities

Millennium Goal Assessment - Tourism Sector Contribution

Internal STSC

assessment of

self-financing

capability

Review of

STSC Structure

2012 Review of capacity building commitments to STSC

Maximization of use of STSC

accreditation & Support

measures

Post full-

funidng

Operation of

the STSC

2013 Multi-stakeholder Participation in all STSC Programme Areas.

Creation of new STSC Targets and Work Programme 2013 -2019.

9. Recommendation for STSC Work Programme: 1) Agree to start the implementation of the knowledge network phase of the STSC

business strategy. 2) Draw up a letter of invitation to the knowledge network potential members. 3) Establish membership signing process based on this report.



8. Conclusion This document reflects the lead consultant’s final position in relation to the project deliverables. Each output has been considered in turn, and the current state of thinking described in detail in the three sections of this document. All outputs require discussion and refinement by the temporary steering committee members and advisors. The capacity- building measures that are suggested by the figures show a strong need for core funding for the duration of the establishment phase. A breakeven point is possible after 2012, and can be ascertained according to any variables using the forecast spreadsheets provided in the technical tools section.(Section C ch3). The 3-stage governance process has an incremental cost structure, based on running a membership organisation with low overheads at first, then building up a partnership to form the legal body that provides the envisages STSC services. Detailing how this will function has been a central aspect of this consultancy. Again, a synthesis of the feasibility study’s recommendations plus the benchmarking organisations’ experiences has enabled a governance form that is appropriate to the tourism sector to emerge. The membership, interacting as a multi-stakeholder knowledge network or certification, gets to elect a stakeholder council of 32-60 representatives, plus a board of 12 directors. These stakeholder representatives will then direct a staff team that consists of an Executive Director, Communications Officer, Personal Assistant, IT Officer, Finance Officer, a Standards Officer, Marketing Director and Training Director, plus interns. (Their work programme is structured in Section C ch1). STSC Costs Bearing in mind the cost of functioning of similar accreditation bodies such as the FSC and MSC, a series of assumptions regarding numbers for membership, candidates for accreditation, certificate end-users marketing take-up and training take-up have been made to pin down the STSC process in figures. The average annual cost of the project is estimated to be $1,224,380 US dollars. Annual minimum and maximum levels of funding (See graph 1) are more of an indication though of how much donors need to give - the total funding over a six year period for developing a full scale accreditation organisation that reaches a point of self-sufficiency range between a minimum of $2,807,701 US and a maximum of $9,077,163 US , depending on how optimistic the revenue forecasts have been, and what stakeholders really do contribute to the marketing campaign, or how they take up the training and accreditation services. Tables and graphs in section 2 ch 5 of this report give a full picture of the human and capital resources required by the STSC from which to draw up funding requests. The STSC Governance Institutional transformation is a necessary prerequisite of sustainable development. The establishment of an STSC requires a multi-stakeholder group to work together to make the tourism sector more sustainable in a measurable and manageable process. Good governance requires coherence, and as a partnership action, the STSC gives coherence to a range of intergovernmental policies, as well as contributing towards a sustainable global economy. The document has been written to ensure that there is a clear, common vision elaborated between the key actors, and that a step-by-step process is described and agreed. Those members of the temporary steering committee and other supporters will initially be taking on the responsibility for implementing that common vision. With this document in their hands, they have a guiding working document to facilitate the path ahead. The elaboration of the vision, and in-depth supporting material such as the elaboration of a business plan that covers governance formations, capacity building, marketing and development strategies is provided on a section by section basis, to be used as a technical manual, with each stakeholder finding a section of interest to their own particular perspective.



There is also a roadmap stakeholders can follow to reach the goal of establishing a viable global accreditation system. Each stakeholder should find in these more detailed technical sections references to their place in the overall process. The STSC process will deliver stakeholders a global communications network, and on this platform a knowledge network of expert individuals and a organizations will assemble to discuss and find consensus on global standards of certification. Alongside them, the possibility for certificate end-users,- the certified micro-enterprises & SMEs and the hundreds of regions across the globe who which to be known for their sustainable tourism offers – to access a global market place through one umbrella organization for their chosen certification process. To achieve consensus on this, all stakeholders will be represented in a multi-stakeholder council, opening channels and processes for arriving at agreed accreditation criteria. Capacity building measures for certified tourism sustainable consumption and production processes will be identified through the certification knowledge network. Certification bodies will be able to see the global market open up more rapidly, as will the certificate end-users. Take-up of certification will provide opportunities for both businesses and regions to broadcast themselves across the global market place. The cost of not setting up an TSC would be hidden in the lack of measurement and capacity of existing governmental organizations. When you are spending other people’s money, you would like to make sure they know you are giving them value for money. The marketing strategy within this business plan gives an exceptional value for money for those who choose to sponsor or otherwise contribute to the STSC’s success. As a globally-scaled process unfolding over a six year period, the STSCs media presence will be extremely high. This is guaranteed by the overarching events in the field of sustainable development, in which the WSSD process and the Millennium Goals will be highlighting the same field of activity in which the STSC will be prominent. That field is the global tourism sector and all the prominence that now has in this era of Global Change. At the WSSD, the sector contribution to sustainable development was specifically pinpointed by the Plan of Implementation (Item 41). If successful by 2012, the creation of the STSC can be held up as a pragmatic and useful transformation that has happened since 2002, adding clarity to the vision and process of sustainable development. As the next step the members of the STSC Temporary Steering Committee will need to approve and then implement this document according to their various capacities and regional locations. Its final version should become the reference point for material for all subsequent governance meetings that will take place as the STSC is bought into being. The worldwide usage it will be coverage of the STSC will also require translation of parts of this document for full consideration across the global stakeholder basis.

10. Recommendation for STSC Work Programme: 1) Sign a Memorandum of Understanding between Temporary Steering Committee

members that they are jointly committed to the STSC implementation process on a phased basis, based on the recommendations suggested in this report and agreed to by the board.

2) Allocate roles and responsibilities to Steering Committee members to achieve the network phase milestones highlighted in the Multi-Stakeholder Roadmap Section B ch7 and specified in the Implementation process Section B ch2 and Section C ch1.

3) Agree on specific tools to use to execute the work program (Section C) 4) Set a date for the formal launch of the knowledge network on tourism sector certification



About this document: This document has been prepared by Gordon Silllence ECOTRANS Representative Portugal With Supporting Material from Mathew Wenban-Smith January 2007 Contact: [email protected] www.ecotrans.org [email protected] http://www.stscouncil.org

‘That’s the end of the Governance System

Business Plan and Marketing Strategy document. Section C now talks you through a Set of Tools that can be used to implement the Governance

System, Business Plan and Marketing Strategy in practice .. it also has the glossary to explain all the

technical language …’



5 DestiNET Portal on

Sustainable Consumption and Production for the

Tourism Sector

9

About this Consultancy

8

Bibliography and web

references

7

Glossary of terms

6 WSSD Framework of

Programmes on Sustainable

Consumption and Production

4

UN Type II Partnership

Process

2 Financial Planning

Spreadsheets For Networking Partnership &

Accreditation Phases

Section C Appendix of

Technical Tools to Support

Implementation

1 A Table of

Governance for Networking,

Partnership and Accreditation

phases

3 Operational Procedures &

Financial Planning

Spreadsheets for the

Accreditation phase



1 A Table of Governance and Institutional Characteristics of Each Phase This Governance table will enable the reader to see what tasks need to be done during the all three phases of the planned STSC development. Governance and Institutional A: Network Phase Six months from approval of Establishment Plan.

During the Network Phase: The STSC temporary Steering Committee establishes itself as the secretariat of a global knowledge network on sustainable tourism certification, with clear terms of reference, membership structure, etc. An STSC Establishment Project Team has been appointed. The STSC Steering Committee has approved:

• the preliminary STSC vision, mission and organizational structure • the STSC Implementation Plan and Business Plan • the initial STSC fundraising and communications strategies • STSC 'founding membership structure', requirements and voting system • a shortlist of possible locations for the STSC

STSC regional stakeholder networks have been established that constitute the global knowledge network.

Costs: Personnel: Third party and consultant fees: - web designer - research into possible locations for STSC office, including advice on tax status, non-profit status, legal entity options and implications, etc.. Travel and accommodation: - two meetings of STSC Steering Committee - STSC Establishment Project team travel budget Office: - operating costs of STSC Establishment Project Team - communication costs - website domain, website and email service providers Other:

Program Linkages:

Standards: Accreditation: Training:

1 A Table of

Governance for Networking,

Partnership and Accreditation

phases



Governance and Institutional Marketing:

B: Partnership Phase 12 to 24 months after end of Network Phase

During the Partnership Phase: STSC is established as a legal entity, with statutes, a Partnership Executive Committee. Offices and an executive officer may be appointed at this stage. The Partnership Executive formally approves:

• STSC membership requirements; • The STSC initial international membership; • STSC (outsourced) accreditation arrangements and requirements; • STSC procedures for developing and approving its international

standards • Dispute resolution procedures in relation to STSC standards • Dispute resolution procedures in relation to STSC endorsement of

products and services The Partnership Executive and membership has formally approved:

• STSC statutes/legal founding documents • STSC bylaws addressing key elements of STSC governance structures

(e.g. constitution and selection of Stakeholder Council); • The initial STSC Stakeholder Council membership and Board of

Directors • The STSC International Standard(s) for STSC endorsed providers of

products and services • terms of reference and membership of technical subcommittees for

standards and accreditation The STSC has been assigned, as necessary, ownership of STSC intellectual property (e.g. trademark, copyrights, etc). The STSC Executive has specified job descriptions and organized recruitment plans for:

• Communications/Resource Development Officer • PA to the Executive Director • Marketing Program Manager • Standards & Accreditation Program Manager • Finance Officer (includes fundraising) • IT Officer • Intern Program

A Stakeholder Council with 32- 40 members has been appointed by the Board of Directors, and is meeting annually or bi-annually. The Stakeholder Council has approved any international standards that are needed for the full and successful implementation of STSC's (outsourced) accreditation program A Communications Officer/PA may start in this phase. The Communications Officer/PA:

• has established an effective system of communicating with the various regional sustainable tourism networks.

• has established and is continuing to build a stakeholder database of prospective STSC members

• has initiated recruitment of the STSC 'founding membership' has been initiated.

• has prepared the STSC communications strategy • has established and is regularly updating the STSC website.



Governance and Institutional By the end of the phase, sufficient funding has been raised for the remaining staff to start work from the beginning of the Accreditation Phase.

Costs: Personnel: - salary of Communications/Resource Development Officer, P/A Third party and consultant fees: - Legal advice (statutes, legal establishment, contracts) Travel and accommodation: - 4 meetings of STSC Executive Committee (15 people) - STSC core establishment travel budget - STSC regional conference budgets - STSC Founding Assembly (40 people) Office: - Operating costs of STSC Executive - IT and computer support for Project teams, Communications Office/PA and other staff - Office set up costs (tables, chairs, fittings, etc) - Rent and overheads Other:

Program Linkages:

Standards: Accreditation: Training: Marketing:

C: Accreditation Phase Up to four years from the legal and operational establishment of STSC

During the Accreditation Phase: The STSC International Membership is built up to include 250 - 500 influential sustainable tourism organisations worldwide, all of whom are actively committed to the STSC and support it with their internal communications and strategies. The members are actively involved in the selection of the STSC Stakeholder Council and in the election of new Board members, and comment on new policy and standards developments. The members pay membership fees to support the governance and institutional structures of the STSC. Staff have been fully appointed. Board elections are taking place every year. The Board of Directors functions on regular electronic conferencing system, meeting monthly on-line and meeting twice a year face-to-face to exercise its responsibility to provide oversight and strategic leadership. The STSC has an effective and highly motivated staff, led by a dynamic Executive Director. The staffing level needs to be sufficient to deliver STSC's program commitments in each of its four external programs. Funding is derived from various donors and projects. By the end of the phase, STSC should aim to have a fully funded program for its year ahead, with an operational breakeven point in sight, and has three months operating expenses



Governance and Institutional in hand.

Costs: Personnel: - salary of STSC Executive Director - salary of PA - salary of Finance Officer/Fundraiser - salary of Communications Officer - salary of IT Officer Third party and consultant fees: - accountants, bookkeeping, legal Travel and accommodation: - annual meeting of STSC Council (32 - 60 people) - 2 annual meetings of Board of Directors (12 people plus STSC staff) - STSC Executive Director travel budget Office: - monthly office rental and overheads - communications costs - office equipment (computers, IT) - general supplies - website maintenance costs Other:

Program Linkages:

Standards: Accreditation: Training: Marketing:

Development of each STSC Progam by phase. Standards Program Standards Program A: Network Phase Six months from approval of Establishment Plan.

By the end of the Network Phase:

Costs: Personnel: Third party and consultant fees: Travel and accommodation: - cost of meeting of Standards sub-committee, if a meeting is necessary. Office: Other:



Standards Program Program Linkages:

Governance/Institutional: Accreditation: Training: Marketing:


By the end of the Partnership Phase: The STSC Standards sub-committee is established and functional. The STSC Standards sub-committee has defined the nature, scope and number of STSC international standards required for the initiation of STSC accreditation. The STSC Standards Program Manager has been recruited, to start work at the start of the Accreditation Phase. The Partnership Executive has formally approved:

• STSC procedures for developing, approving, reviewing and revising its international standards (including the establishment and maintenance of any necessary committees, sub-committees, etc).

• STSC procedures for providing ongoing guidance/advice on the implementation of STSC standards.

• STSC policy and any associated procedures relating to the use of regional or sector-specific variations from STSC international requirements.

• A dispute resolution system to review and attempt to address any stakeholder concerns in relation to the implementation of STSC standards development procedures.

The Board of Directors and membership has formally approved:

• The STSC International Standard(s) for STSC endorsed providers of products and services, as required

A financial model has been established and approved by the Executive to cover the expected costs of ongoing standards development, review, revision and provision of guidance and advice.

Costs: Personnel: Third party and consultant fees: - translation costs - meeting facilitation costs Travel and accommodation: - costs of meetings of technical committees/working groups Office: Other: - Annual ISEAL membership fee

Program Linkages:

Governance/Institutional: Accreditation: Training:



Standards Program Marketing:


By the end of the Accreditation Phase: All STSC standards are in widespread use, and the formal procedures for review, revision, hearing of disputes and provision of guidance/advice are being fully implemented as described. One or more technical working groups are being managed to review, revise or develop new STSC International Standards as required. The Standards Program is providing ongoing advice and support to the Training Program as required, including technical support in relation to the standards content of training materials. An effective system of monitoring and evaluating the social and environmental impacts of compliance with STSC standards has been established, and is providing credible, independent information which can be used to continually improve the social and environmental value of STSC standards.

Costs: Personnel: - salary of Standards Program Manager Third party and consultant fees: - translation costs - meeting facilitation costs Travel and accommodation: - costs of meetings of technical committees/working groups - cost of dispute resolution Office: Other: - Annual ISEAL membership fee

Program Linkages:

Governance/Institutional: Accreditation: Training: Marketing:

Accreditation Program Accreditation Program A: Network Phase Six months from approval of Establishment Plan.

By the end of the Network Phase: .

Costs: Personnel: Third party and consultant fees: Travel and accommodation:



Accreditation Program Office: Other:

Program Linkages:

Governance/Institutional: Standards: Training: Marketing:


By the end of the Partnership Phase: The STSC Accreditation sub-committee is established and functional. The STSC Accreditation sub-committee has evaluated the options in relation to organisation of the STSC Accreditation function, has submitted its recommendations to the Steering Committee. The STSC Steering Committee has made a clear decision specifying the model for implementing the STSC Accreditation Function The Board of Directors has formally approved STSC (outsourced) accreditation arrangements, including:

• Technical specifications ('standards') to be met by certification bodies in order to qualify for STSC-endorsement

• Technical specification ('standards') to be met by accreditation bodies in order to carry out accreditation on STSC's behalf.

• Criteria for selection and appointment of accreditation body/ies • Financial aspects of accreditation arrangements (royalties, fees,

penalties, etc). • Procedures in relation to monitoring implementation of contract by

selected accreditation body/ies. • Policy and procedures for dispute resolution in relation to complaints or

concerns relating to provision of STSC-endorsed products or services (including accreditation, certification, and the provision of the products or services themselves).

• Form of contract to be signed with selected accreditation body/ies • STSC procedures for developing, communicating and ensuring

implementation of ongoing guidance/advice on the implementation of STSC standards.

The Board of Directors has signed an accreditation outsourcing contract with one or more accreditation bodies to provide accreditation services on STSC's behalf.

Costs: Personnel: Third party and consultant fees: - Legal fees associated with preparation and negotiation of contract with selected international accreditation body(ies) - consultant costs associated with evaluation of prospective international accreditation body(ies) Travel and accommodation: - travel to visit prospective international accreditation body(ies) - any costs associated with continued work of STSC Accreditation Subcommittee Office: Other:



Accreditation Program

Program Linkages:

Governance/Institutional Standards: Training: Marketing:


By the end of the Accreditation Phase: The (outsourced) accreditation program is running smoothly, with an increasing number of accredited certification bodies issuing STSC-endorsed certificates for STSC-endorsed products and services worldwide. The STSC Accreditation Program Manager is monitoring the implementation of the program on behalf of STSC, and (possibly) providing support in relation to dispute resolution. The Accreditation Program Manager is providing ongoing technical support to the STSC Training Program, in coordination with other programs around the world, in relation to support for the establishment and development of new certification programs in countries where these do not yet exist. STSC-endorsed accreditation is providing sufficient revenue to cover the costs of all associated STSC activities (monitoring, dispute resolution, etc).

Costs: Personnel: - salary of Accreditation Program Manager Third party and consultant fees: - possible consultant costs to monitor implementation of accreditation program - possible costs associated with dispute resolution Travel and accommodation: - travel costs associated with monitoring of implementation of international accreditation program - possible costs associated with dispute resolution - travel costs associated with support for the STSC Training Program Office: Other:

Program Linkages:

Governance/Institutional Standards: Training: Marketing:

The STSC can choose not to implement its own accreditation functions – following the recommendation in the feasibility study (p216). 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. 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 Note on the ISEAL offer provides an example of financial and technical implications of the outsourcing approach (see supporting document Notes to the Budget Plan.) Training Program Training Program A: Network Phase Six months from approval of Establishment Plan.

By the end of the Network Phase:

Costs: Personnel: Third party and consultant fees: Travel and accommodation: Office: Other:

Program Linkages:

Governance/Institutional: Standards: Accreditation: Marketing:


By the end of the Partnership Phase: Training materials have been developed as required, in close consultation with the Standards Program Manager and Accreditation Program Manager. The STSC Training Program has been operational for the previous 12 months, and is already financially self-sufficient, including an appropriate contribution to STSC core and investment costs. An STSC "training for trainers" program has been prepared, and is being provided to prospective training bodies in response to growing demand. The STSC Training Program Manager has developed and the STSC Board of Directors has approved a clear long term strategy and three-year Business Plan for the development and delivery of STSC-endorsed training. Contracts/licenses to make use of STSC-endorsed training materials and covering financial aspects, payment of royalties, marketing etc. have been developed, and have been approved by the STSC Board of Directors.

Costs: Personnel: - Third party and consultant fees: Travel and accommodation: - travel and accommodation associated with development and/or provision of training services by Training Program Manager.



Training Program Office: Other:

Program Linkages:

Governance/Institutional Standards: Accreditation: Marketing:


By the end of the Accreditation Phase: The STSC Training Program Manager has been recruited, to start work at the start of the Accreditation Phase. STSC-endorsed training is being provided to prospective certification bodies, inspectors and STSC-endorsed service providers as required worldwide. STSC-endorsed training is providing a significant revenue stream to support STSC core costs.

Costs: Personnel: - salary of Training Program Director Third party and consultant fees: Travel and accommodation: Office: Other:

Program Linkages:

Governance/Institutional Standards: Accreditation: Marketing:

Marketing Program Marketing Program A: Network Phase Six months from approval of Establishment Plan.

By the end of the Network Phase: The STSC Marketing Strategy is adopted and enacted. Tourism stakeholders from the global knowledge network on sustainable tourism certification, make alliances and partnerships with the STSC. The STSC act as the secretariat for a marketing meta-network dissemination structure based on the global sub-regions. A collaboration agreement is made with the European Environment Agency’s DestiNET sustainable tourism portal to make a global map of the knowledge network, including existing sustainable tourism certificates available via the Portal, and to offer communications facilities to members of the knowledge network



Marketing Program Costs: Personnel:

Third party and consultant fees: Travel and accommodation: STSC Temporary Steering Committee meeting Office: Other:

Program Linkages:

Governance/Institutional: Standards: Accreditation: Training:


By the end of the Partnership Phase: The STSC Marketing Program Manager has been recruited and is ready to start work at the start of the Accreditation Phase The STSC logo has been commissioned, designed, and consistent 'corporate identity' materials (stationery, brochures, website, etc) have been developed. The STSC marketing strategy has generated several alliances and partnership s between the STSC and its supporters Marketing and communications materials have been prepared in support of:

• STSC and its membership program; • STSC-endorsed certification bodies and their associated services; • STSC-endorsed certified service providers and their associated

services/products; • STSC-endorsed trainers and their associated services; • 'STSC-qualified' trainees (e.g. inspectors, service providers) and their

associated services. Contracts/licenses/sub-licences to make use of STSC-endorsed marketing materials and covering financial aspects, payment of royalties, social/environmental claims etc. have been developed, and have been approved by the STSC Board of Directors.

Costs: Personnel: Third party and consultant fees: - logo design - design of 'corporate identity' materials (stationery, brochures, etc) - printing of 'corporate identify' materials (stationery, brochures, etc) - production of 'marketing packs' or similar for different user groups. - legal advice in relation to contract/license/sub-license requirements - legal registration of STSC trademark(s) in relevant jurisdictions and product/service categories - legal advice in relation to copyright protection issues; Travel and accommodation: - Marketing Program Director attendance at relevant Trade Fairs, conferences,



Marketing Program etc. Office: - Website maintenance (may be considered general institutional cost) Other:

Program Linkages:

Governance/Institutional Standards: Accreditation: Training:


By the end of the Accreditation Phase: STSC-based marketing is widely recognised both within the tourist industry and by consumers as the international benchmark for 'sustainable tourism' products and services. STSC-endorsed service providers generate significant value-added from STSC's endorsement. The full costs of the STSC marketing program are fully covered through fees or royalties for use of STSC marketing materials (including an appropriate contribution to the institutional infrastructure and ongoing support for the integrity of STSC standards).

Costs: Personnel: - salary of Marketing Program Director Third party and consultant fees: - ongoing costs of design and printing of marketing materials, brochures, etc. Travel and accommodation: - Marketing Program Director attendance at relevant Trade Fairs, conferences, etc. Office: - Website maintenance (may be considered general institutional cost) - CDs for distribution of marketing materials Other:

Program Linkages:

Governance/Institutional Standards: Accreditation: Training:



2. Financial Planning Spreadsheets for the Networking Partnership & Accreditation Phases The spreadsheet extracts can be found in the accompanying Excel Workbook STS Business Plan Overview 2007-2012 Network Phase

STSC Business Plan Overview 2007 -2012 Network Phase US$

2007 1st

Quarter

2007 2nd

Quarter

Network Phase Total

A Revenue Funding Revenue Donations - Core 22,600 64,600 87,200 Sub-Total A1 22,600 64,600 87,200 Revenue from Services KN Membership fees 0 0 Subtotal A2 0 0 0 Total Revenue 22,600 64,200 87,200 B Costs Core Staff Staff Salaries - with employer's costs 0 0

Program Staff Staff Salaries - with employer's costs 0 0 (total staff costs) Third Party, Consultant & Marketing IT - external support 20,000 Design work 10,000 Printing and publishing 10,000 Translation 2,000 Administration 5,000


47,000 47,000

Travel and accommodation STSC staff and consultants 10,000 5,000 event travel and accommodation 10,000 10,000 (Total Travel and Accommodation) 20,000 15,000 35,000 Office costs Rent Phone, fax, internet 2,000 2,000 0

2 Financial Planning

Spreadsheets for the Networking

Partnership & Accreditation Phases



Office Supplies 600 600 0 Miscellaneous Office costs Computer Equipment (total office costs) 2,600 2,600 5,200 B Total Costs 22,600 64,600 87,200

Total Balance (A- B) 0 0 0 Total Funding Requirement MINIMUM 22,600 64,600 87,200 Total Funding Requirement MAXIMUM 22,600 64,600 87,200

Partnership Phase (Extract from STSC Budget 2007 -2012. xls /Partnership Phase.Worksheet

STSC Business Plan Overview 2007 -2012 Q 3 Q2 Q1 Q2 Q3 Q4 Total

Partnership Phase Quarterly Summary 2007 2007 2008 2008 2008 2008 PartnershipA Revenue US Dollars $ Phase Funding Revenue Donations - Core 84,250 26,250 96,600 45,600 54,600 69,600 376,900Donations - Project Specific 24,000 0 0 0 24,000Sponsorship of STSC events 40,000 50,000 64,000 154,000Sub-Total A1 148,250 146,600 109,600 54,600 69,600 554,900Revenue from Services KN Membership fees 0 0 10,000 6,000 2,000 2,000 20,000Membership fees Other Services Royalties/commissions on STSC standards use

0 0 0 0

Accreditation Fees - Maximum estimate 0 0 0 0 Training Fees 5,000 10,000 20,000 20,000 55,000STSC Trademark Marketing Fees 0 0 0 0 Subtotal A2 0 5,000 10,000 16,000 22,000 22,000 75,000A Total Revenue 148,250 31,250 156,600 125,600 76,600 91,600 629,900B Costs US Dollars $ Staff Salaries Staff Salaries 35,000 17,500 17,500 17,500 17,500 105,000Staff Emploment Costs Employer's costs 0 0 0 0 (total staff costs) 35,000 17,500 17,500 17,500 17,500 105,000

Partnership Phase Quarterly Summary 2007 2007 2008 2008 2008 2008 PartnershipThird Party, Consultant & Marketing

Audit Fees 0Outsourced accreditation costs

Legal Fees 10,000 2,500 2,500 2,500 2,500 20,000Trademark registration costs 5,000 5,000 10,000Staff training 2,000 2,000



IT - external support 10,000 20,000 20,000 50,000Design work 10,000 10,000 5,000 0 0 30,000 55,000Printing and publishing 10,000 10,000 30,000 10,000 10,000 25,000 95,000Translation 10,000 10,000 0 0 0 20,000Administration 5,000 5,000 10,000 5,000 5,000 10,000 40,000(Total 3rd Party) 55,000 25,000 84,500 37,500 22,500 67,500 292,000


STSC staff and consultants 28,000 2,000 50,000 2,000 32,000 2,000 116,000event travel and accommodation 20,000 0 64,000 84,000(Total Travel and Accommodation) 48,000 2,000 50,000 66,000 32,000 2,000 200,000

Office costs

Rent 1,250 1,250 2,500 2,500 2,500 2,500 12,500Phone, fax, internet 1,000 1,000 1,500 1,500 1,500 1,500 8,000Office Supplies 3,000 2,000 300 300 300 300 6,200Miscellaneous Office costs 300 300 300 300 1,200Computer Equipment 5,000 0 0 0 0 5,000(total office costs) 10,250 4,250 4,600 4,600 4,600 4,600 32,900B Total Costs 148,250 31,250 156,600 125,600 76,600 91,600 629,900Total Funding Requirement MINIMUM 148,250 26,250 146,600 109,600 54,600 69,600 554,900Total Funding Requirement MAXIMUM 148,250 31,250 156,600 125,600 76,600 91,600 629,900





Extract from STSC Budget 2007 -2012. xls /Overview.Worksheet

STSC Business Plan Overview 2007 -2012

2009 Total

2010 Total

2011 Total

2012 Total


Accreditation Phase 2009 -2012 US $

A Revenue US Dollars $ Funding Revenue Donations - Core 1,070,358 732,707 411,508 233,012 2,447,585 Donations - Project Specific 123,800 122,793 126,541 128,548 501,681 Sponsorship of STSC events 84,500 94,500 214,500 864,500 1,258,000 Sub-Total A1 1,278,658 950,000 752,549 1,226,060 4,207,266 Revenue from Services 0 KN Membership fees 0 0 0 0 Membership fees 71,484 142,969 214,453 285,938 714,844 Other Services 0 0 0

Royalties/commissions on STSC standards use

0 0 00

Accreditation Fees - Maximum estimate 0 0 20,000 60,000 80,000 Training Fees 12,500 100,000 175,000 250,000 537,500 STSC Trademark Marketing Fees 101,042 202,083 404,167 606,250 1,313,542 Subtotal A2 113,542 445,052 813,620 1,202,188 2,574,401 A Total Revenue 1,392,200 1,395,052 1,566,169 2,428,247 6,781,667 B Costs US Dollars $ Staff Salaries Staff Salaries 395,000 464,750 515,550 591,328 1,966,628 Staff Emploment Costs 0 Employer's costs 158,000 185,900 206,220 236,531 786,651



(total staff costs) 553,000 650,650 721,770 827,859 2,753,279 Third Party, Consultant & Marketing

Audit Fees 20,000 30,000 10,000 10,000 70,000 Outsourced accreditation costs 0 0 0 0 0 Legal Fees 65,000 55,000 65,000 70,000 255,000 Trademark registration costs 10,000 10,000 10,000 10,000 40,000 Staff training 8,000 6,000 3,000 3,000 20,000 IT - external support 55,000 55,000 55,000 75,000 240,000 Design work 65,000 35,000 55,000 110,000 265,000 Printing and publishing 112,000 127,000 170,000 235,000 644,000 Translation 20,000 20,000 50,000 110,000 200,000 Administration 20,000 20,000 50,000 540,000 630,000


375,000 358,000 468,000 1,163,0002,364,000


STSC staff and consultants 92,000 104,000 104,000 107,000 407,000 event travel and accommodation 272,000 224,000 224,000 224,000 944,000 (Total Travel and Accommodation) 364,000 328,000 328,000 331,000 1,351,000 Office costs Rent 24,000 24,000 24,000 24,000 96,000 Phone, fax, internet 7,200 7,200 7,200 7,200 28,800 Office Supplies 6,200 1,200 1,200 1,200 9,800 Miscellaneous Office costs 0 0 0 0 0 Computer Equipment 62,800 16,000 16,000 16,000 110,800 (total office costs) 100,200 48,400 48,400 48,400 245,400 B Total Costs 1,392,200 1,385,050 1,566,170 2,370,259 6,713,679

Total Funding Requirement MINIMUM 1,278,658 950,000 752,549 1,226,060 4,207,266

Total Funding Requirement MAXIMUM 1,392,200 1,385,050 1,566,170 2,370,259 6,781,667



3) Operational ('Accreditation') Phase – Governance and Financial Options

A) Excel Spreadsheet of Accreditation Phase Income and Expenditure Options

B) Notes to the Business Plan with Optional Scenarios (includes STSC Governance Structures- Options for the Accreditation Phase and Offer of Premises/Services in Bonn

These documents have provide a detailed discussion of the methodology of the business plan spreadsheets as well as alternative governance and budget considerations.

. To use all the workbooks as a calculating tool, go to the Notes to the Business Plan Section’. Here you will be taken step by step through the data and shown how to edit the number to make your own calculations.

3 Operational Procedures & Financial Planning Spreadsheets

for the Accreditation phase

Notes to the

Business Plan with Optional Scenarios

Commentary by Matthew Wenban



4 : UN Type II Partnership Registration Form Please read the CSD-11 decision on partnerships before completing this form. Submitting the completed form to the CSD secretariat indicates that you consider your partnership meets the criteria and guidelines.

* Asterisked items must be filled in

General

* Name of partnership: Sustainable Tourism Stewardship Council

* Expected timeframe: Start: (month/year)

2007 July End: (month/year) 2012Dec

Partnership website (if any): www.stsc.org

* Partners involved (Please identify, for each relevant type, the names of all partners involved in the partnership.)

Governments (country, name of government body): See stakeholder grid of knowdedge network members

Major groups 25 (group, name of organization, country):

UN System (name of UN body, country):

Other intergovernmental organizations (name, country):

Other 26 (name of organization, country):

* Lead partners Please designate one or at most two partners as the focal point(s). Please provide contact

information (*full name, address, *phone, email). To be decided by STSC temporary steering committee

Coverage

* Themes involved Select one or more themes from the multi-year programme of the work of the Commission on Sustainable Development, by placing an X in the relevant boxes.

Primary focus/theme(s) please use the left box (1), other theme(s) use the right box (2).

1 2 1 2 1 2 Agriculture Energy for sustainable Ocean and seas development Air pollution / Atmosphere Forests Poverty eradication

Biodiversity Gender equality Protecting & managing

natural resource base Biotechnology Health and sustainable Rural development

development Changing unsustainable Human settlements Sanitation patterns of consumption and roduction Production Industrial development Sustainable development for

Africa Chemicals x Institutional framework for

sustainable development Sustainable development of Climate change SIDS Land Desertification x Sustainable development in a Marine resources globalizing world

25 As identified in Agenda 21, the nine major groups of civil society are: Women, Youth and Children, Indigenous People, Non-Governmental Organizations, Local Authorities, Workers and Trade Unions, Business and Industry, Scientific and Technological Community and Farmers. 26 Other organizations e.g. academic institutions, media, etc.

4

UN Type II Partnership

Process



Disaster management and x Tourism Vulnerability Means of Implementation (Trade, Finance, Technology Transport Drought Transfer, etc.) Mining Waste management x Education Mountains Water * Geographic scope Please select one of the following to describe the geographic scope of your partnership:

x Global Sub-regional (specify): Sub-national / local Regional (specify): National

* Please identify every country where the partnership is being implemented: Provide List of countries with members who sign up to the Partnership phase

Objectives

* Partnership goals and objectives (Please provide a brief description. Maximum 200 words): The core mission of the STSC is to enhance the sustainability of tourism operations by encouraging -through the establishment of a global accreditation, standards, training, support and marketing organization - better performance in terms of social/environmental issues and improved economic benefits to ethical businesses and local communities worldwide, in order to increase the number and quality of certified sustainable tourism enterprises in the global marketplace. The Objectives 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

* Partnership targets (quantifiable or other) (Please be as specific as you can. Maximum 200 words):

2007 Signing of Members to Global Knowledge Network on Sustainable Tourism

Network Phase

Unifying global event involving global sub- regional events formally marking the

establishment of the global knowledge network on sustainable tourism certification

Call for Partnership Members..

Establishment of Training, Accreditation Standards Review and Marketing Sub-groups

Partnership Phase

Creation of STSC Partnership with elections to



Multi-Stakeholder Executive Board 2008 and Management Sub-Groups.

End of Year Funding and In-Kind Contribution Assessment

Standards Review and Agreement.

Training Programme Development finalised – pilot completed

Dissemination channel operational

Accreditation Phase

Full Funding Commitment signed with between Partnership members

Establishment of final Accreditation Phase Governance body composed of Knowledge

Network Membership base Multi-stakeholder Council Board of Directors and Executive

Staff

Standards Review and Agreement

Staff Appointments

STSC Work Programs activated.

First Accreditations

Marketing Campaign

Coordinated global calendar of training, marketing and awareness events

Standards Review and Agreement

Staff Appointments

STSC Work Programs expanded across global sub regional networks

First Accreditations

Marketing Campaign

Approval of and commitment to coordinated global calendar of training, marketing

and Awareness-raising events in 2012

Full participation in World Summit on Sustainable Development + 10 Year of Tourism Sector CRI/SCP Activities

Millennium Goal Assessment and Refocus

Internal STSC assessment of self-financing capability

Review of STSC Structure

Self Sufficient Operation of the STSC

* Progress against targets (Maximum 200 words) If none, state none.

Partnership is in process of formation. An annual review of progress against targets will

be made when the partnership is operational

Arrangements for capacity-building and technology transfer (if relevant): x Human resources development/training x Education/building awareness Other x Institutional strengthening, including local participation x Technology transfer/exchange



Please provide a brief description:

Coordination mechanism of the Partnership (Please provide a brief description. Max. 200 words): The good governance principles of openness, participation, transparency, accountability and effectiveness27 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)

Implementation mechanism of the Partnership (Please provide a brief description. Max. 200 words): The governance body, through its executive staff and membership organisations, will conduct the following activities:

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

27 EU Better Regulation Package June 2002



certification programs.

* Please indicate how the partnership contributes to the implementation of Agenda 21, the Programme for the Further Implementation of Agenda 21, and/or the Johannesburg Plan of Implementation.28 If possible, please specify the relevant sections of the agreements that relate to your partnership.

At a general level the STSC’ remit is located in the JPOI section III Changing unsustainable patterns of consumption and production 14. Fundamental changes in the way societies produce and consume are indispensable for achieving global sustainable development. All countries should promote sustainable consumption and production patterns, with the developed countries taking the lead and with all countries benefiting from the process, taking into account the Rio principles, including, inter alia, the principle of common but differentiated responsibilities as set out in principle 7 of the Rio Declaration on Environment and Development. Governments, relevant international organizations, the private sector and all major groups should play an active role in changing unsustainable consumption and production patterns. This would include the actions at all levels set out below. 15. Encourage and promote the development of a 10 -year framework of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumpt ion and production to promote social and economic development within the carrying capacity of ecosystems by addressing and, where appropriate, delinking economic growth and environmental degradation through improving efficiency and sustainability in the us e of resources and production processes and reducing resource degradation, pollution and waste. All countries should take action, with developed countries taking the lead, taking into account the development needs and capabilities of developing countries, through mobilization, from all sources, of financial and technical assistance and capacity-building for developing countries. This would require actions at all levels to: (a) Identify specific activities, tools, policies, measures and monitoring and assessment mechanisms, including, where appropriate, life -cycle analysis and national indicators for measuring progress, bearing in mind that standards applied by some countries may be inappropriate and of unwarranted economic and social cost to other countries , in particular developing countries; (b) Adopt and implement policies and measures aimed at promoting sustainable patterns of production and consumption, applying, inter alia, the polluter-pays principle described in principle 16 of the Rio Declaration o n Environment and Development; (c) Develop production and consumption policies to improve the products and services provided, while reducing environmental and health impacts, using, where appropriate, science-based approaches, such as life-cycle analysis; (d) Develop awareness-raising programmes on the importance of sustainable production and consumption patterns, particularly among youth and the relevant segments in all countries, especially in developed countries, through, inter alia, education, public and consumer information, advertising and other media, taking into account local, national and regional cultural values; (e) Develop and adopt, where appropriate, on a voluntary basis, effective, transparent, verifiable, non -misleading and non-discriminatory consumer information tools to provide information relating to sustainable consumption and production, including human health and safety aspects. These tools should not be used as disguised trade barriers; (f) Increase eco -efficiency, with financial support from all sources, where mutually agreed, for capacity -building, technology transfer and exchange of technology with developing countries and countries with economies in transition, in cooperation with relevant international organizations. 16. Increas e investment in cleaner production and eco

28 Copies of these documents are available by following the links given or visiting the following page of the CSD Secretariat website: www.un.org/esa/sustdev/partnerships/partnerships_registration



The STSC Specifically address item 18a of the JPOI. 18. Enhance corporate environmental and social responsibility and accountability. This would include actions at all levels to: (a) Encourage industry to improve social and environmental performance through voluntary initiatives, including environmental management systems, codes of conduct, certification and public reporting on environmental and social issues, taking into account such initiatives as the International Organization for Standardization standards and Global Reporting Initiative guidelines on sustainability reporting, bearing in mind principle 11 of the Rio Declaration on Environment and Development; (b) Encourage dialogue between enterprises and the communities in which they operate and other stakeholders; (c) Encourage financial institutions to incorporate sustainable development considerations into their decision -making processes; (d) Develop workplace-based partnerships and programmes, including training and education programmes. At a sectoral level the STSC remit from the JPOI is stated in item 43 Promote sustainable tourism development, including non -consumptive and eco-tourism, taking into account the spirit of the International Year of Eco -tourism 2002, the United Nations Year for Cultural Heritage in 2002, the World Eco -tourism Summit 2002 and its Quebec Declaration, and the Global Code of Ethics for Tourism as adopted by the World Tourism Organization in order to increase the benefits from tourism resources for the population in host communities while maintaining the cult ural and environmental integrity of the host communities and enhancing the protection of ecologically sensitive areas and natural heritages. Promote sustainable tourism development and capacity -building in order to contribute to the strengthening of rural and local communities. This would include actions at all levels to: (a) Enhance international cooperation, foreign direct investment and partnerships with both private and public sectors, at all levels; (b) Develop programmes, including education and tra ining programmes, that encourage people to participate in eco -tourism, enable indigenous and local communities to develop and benefit from eco -tourism, and enhance stakeholder cooperation in tourism development and heritage preservation, in order to improve the protection of the environment, natural resources and cultural heritage; (c) Provide technical assistance to developing countries and countries with economies in transition to support sustainable tourism business development and investment and touris m awareness programmes, to improve domestic tourism, and to stimulate entrepreneurial development; (d) Assist host communities in managing visits to their tourism attractions for their maximum benefit, while ensuring the least negative impacts on and risks for their traditions, culture and environment, with the support of the World Tourism Organization and other relevant organizations; (e) Promote the diversification of economic activities, including through the facilitation of access to markets and comme rcial information, and participation of emerging local enterprises, especially small and medium-sized enterprises. * * *

Resources As stated in the CSD-11 guidelines and criteria, partnerships should be based on predictable and sustained resources for their implementation, including new resources. Please provide as much information as possible. Funding currently available: Amount in US$

Source(s): Government Inter-Governmental Organizations (IGOs) Foundations / charities



Private sector Non-Governmental Organizations (NGOs) Other (please specify):

Specify source(s) e.g. names of organizations, ministries, etc.: A business plan has been prepared to raise money for the partnership

Additional funding sought: Amount in US$

Specify source(s) already approached: Not yet applicable

Non-financial resources available:

Type(s): Computers Office space Staff Other None

Source(s): Government Inter-Governmental Organizations (IGOs) Foundations / charities Private sector Non-Governmental Organizations (NGOs) Other (please specify):

Specify source(s): Not yet applicable

Non-financial resources sought: Requirement(s): Computers Office space Staff Other (specify below) None

Specify source(s) already approached and provide details of requirements:

See business plan

National Focal Points

Taking into account the CSD-11 guidelines and criteria in this respect, please indicate if the partnership has made contact with the national focal points for sustainable development29 in the countries involved:

x Yes x No Don’t know

Additional Relevant Information

Please share any lessons learned from experience with this partnership, including any problems and constraints encountered and successful strategies employed for dealing with them, possible opportunities for extending this initiative and/or replicating it elsewhere, etc.

Not yet applicable

Please submit completed form to:

Partnerships Team

Two UN Plaza, DC2-2220, New York, NY 10017 USA

Fax: +1 (917) 367 2341 E-mail: [email protected]

29 A list of National Focal Points is available at http://www.un.org/esa/sustdev/natlinfo/nfp.htm



5: DestiNET In particular, to ensure a positive start for the networking phase and the need for minimal cost activity, the European Environment Agency’s (EEA) DestiNET Portal can be used as an initial marketing tool for this work, starting with the networking of existing stakeholders through the DestiNET Sustainable Tourism Portal. This could provide the following marketing and communications tool for STSC use:

How the Tourism Value Chain map can be used to launch the marketing strategy: Developed specifically for the Tourism Learning Areas approach by the European Commission’s DG Enterprise’s Tourism Unit, the Tourism Value Chain Map provides the technical structure for constructing knowledge networks. It has already been made available for use as a Learning Area on Sustainable Production and Consumption as part of the DestiNET Sustainable Tourism Portal Partnership .The use of the Portal by the STSC will facilitate the logistical, organisational and communications structure needed for a global knowledge network on sustainable tourism certification. Furthermore, the Portal already lists over 60 Eco-labels linked to certified products in tourism, and provides a single European-level point of contact for SCP issues in tourism. The EEA are the lead proponents of DestiNET, and provide a stable and reliable platform on both a technical level and by a programme basis. The Portal has also recently been backed by the WTO and UNEP, and opportunities to engage these inter-governmental agencies in a new partnership clearly exist. The DestiNET Partnership has offered to provide a Portal for the global system in the network phase, and will therefore provide active support to other coordinating agencies involved, such as the RA, TIES, Network of the Americas, PATA etc …

5 DestiNET Portal on

Sustainable Consumption and Production for the

Tourism Sector



Steps to build the networked marketing infrastructure include:

STSC stakeholder categories will be matched to the DestiNET Portal interface categories

All STSC members will be logged onto the Portal, with direct links to individual websites A global map of members will be made accessible on Google Earth to launch the

certification knowledge network. Founding Members will be offered cost-free direct Portal links and allocated Portal

editing rights during the Network Phase The DestiNET bulletin board and Circa Communications tool will be used to create a

common global certification forum. All members events will be eligible for display in the DestiNET calendar The DestiNET information pages on Good Practice and Sustainable Consumption and

Production will reflect STSC content. The UNWTO’s current participation in the DestiNET Partnership alongside UNEP already provides a existing framework in which such a knowledge network can be realised. DestiNET, as the European Portal on Sustainable Consumption and Production for the Tourism Sector, would make it possible fro the STSC to work within a partnership formula that has already expressed its intention to provide best practice information for the tourism stakeholders on all things to do with sector sustainability.

In 2001 about 7,000 tourism products were certified worldwide, most of them in Europe (about 6,000) (WTO, 2002). Blue Flag is the market leader for a specific niche market, certifying over 2,700 beaches and marinas, again mainly in Europe (Font, 2002). (Feasibility Study p72) Would you be interested in seeing all of these tourism products and services on one global map? An aim of the marketing strategy is to have all these certified tourism products, and others, accessible via the DestiNET Portal, and visible to all prospective clients as a positive demonstration of the STSC’s knowledge networking and marketing capabilities.



6 WSSD Framework of Programmes on Sustainable Consumption and Production The following text is extracted from the World Summit on Sustainable Development Plan of Implementation Johannesburg 2002 (JPOI), available from the UN Commission on Sustainable Development. The JPOI section III Changing unsustainable patterns of consumption and production 14. Fundamental changes in the way societies produce and consume are indispensable for achieving global sustainable development. All countries should promote sustainable consumption and production patterns, with the developed countries taking the lead and with all countries benefiting from the process, taking into account the Rio principles, including, inter alia, the principle of common but differentiated responsibilities as set out in principle 7 of the Rio Declaration on Environment and Development. Governments, relevant international organizations,the private sector and all major groups should play an active role in changing unsustainable consumption and production patterns. This would include the actions at all levels set out below. 15. Encourage and promote the development of a 10 -year framework of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production to promote social and economic development within the carrying capacity of ecosystems by addressing and, where appropriate, delinking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste. All countries should take action, with developed countries taking the lead, taking into account the development needs and capabilities of developing countries, through mobilization, from all sources, of financial and technical assistance and capacity-building for developing countries. This would require actions at all levels to: (a) Identify specific activities, tools, policies, measures and monitoring and assessment mechanisms, including, where appropriate, life -cycle analysis and national indicators for measuring progress, bearing in mind that standards applied by some countries may be inappropriate and of unwarranted economic and social cost to other countries , in particular developing countries; (b) Adopt and implement policies and measures aimed at promoting sustainable patterns of production and consumption, applying, inter alia, the polluter-pays principle described in principle 16 of the Rio Declaration o n Environment and Development; (c) Develop production and consumption policies to improve the products and services provided, while reducing environmental and health impacts, using, where appropriate, science-based approaches, such as life-cycle analysis; (d) Develop awareness-raising programmes on the importance of sustainable production and consumption patterns, particularly among youth and the relevant segments in all countries, especially in developed countries, through, inter alia, education, public and consumer information, advertising and other media, taking into account local, national and regional cultural values; (e) Develop and adopt, where appropriate, on a voluntary basis, effective, transparent, verifiable, non -misleading and non-discriminatory consumer information tools to provide information relating to sustainable consumption and production, including human health and safety aspects. These tools should not be used as disguised trade barriers; (f) Increase eco -efficiency, with financial support from all sources, where mutually agreed, for capacity -building, technology transfer and exchange of

6

WSSD Framework of Programmes on

Sustainable Consumption and

Production



technology with developing countries and countries with economies in transition, in cooperation with relevant international organizations. The STSC Specifically address item 18a of the JPOI. 18. Enhance corporate environmental and social responsibility and accountability. This would include actions at all levels to: (a) Encourage industry to improve social and environmental performance through voluntary initiatives, including environmental management systems, codes of conduct, certification and public reporting on environmental and social issues, taking into account such initiatives as the International Organization for Standardization standards and Global Reporting Initiative guidelines on sustainability reporting, bearing in mind principle 11 of the Rio Declaration on Environment and Development; (b) Encourage dialogue between enterprises and the communities in which they operate and other stakeholders; (c) Encourage financial institutions to incorporate sustainable development considerations into their decision -making processes; (d) Develop workplace-based partnerships and programmes, including training and education programmes. At a sectoral level the STSC remit from the JPOI is stated in item 43 Promote sustainable tourism development, including non -consumptive and eco-tourism, taking into account the spirit of the International Year of Eco -tourism 2002, the United Nations Year for Cultural Heritage in 2002, the World Eco -tourism Summit 2002 and its Quebec Declaration, and the Global Code of Ethics for Tourism as adopted by the World Tourism Organization in order to increase the benefits from tourism resources for the population in host communities while maintaining the cult ural and environmental integrity of the host communities and enhancing the protection of ecologically sensitive areas and natural heritages. Promote sustainable tourism development and capacity -building in order to contribute to the strengthening of rural and local communities. This would include actions at all levels to: (a) Enhance international cooperation, foreign direct investment and partnerships with both private and public sectors, at all levels; (b) Develop programmes, including education and tra ining programmes, that encourage people to participate in eco -tourism, enable indigenous and local communities to develop and benefit from eco -tourism, and enhance stakeholder cooperation in tourism development and heritage preservation, in order to improve the protection of the environment, natural resources and cultural heritage; (c) Provide technical assistance to developing countries and countries with economies in transition to support sustainable tourism business development and investment and touris m awareness programmes, to improve domestic tourism, and to stimulate entrepreneurial development; (d) Assist host communities in managing visits to their tourism attractions for their maximum benefit, while ensuring the least negative impacts on and risks for their traditions, culture and environment, with the support of the World Tourism Organization and other relevant organizations; (e) Promote the diversification of economic activities, including through the facilitation of access to markets and commercial information, and participation of emerging local enterprises, especially small and medium-sized enterprises. * * *



7. Glossary of terms Accreditation STSC-Accreditation, where tourism

certification programs are assessed in their ability to meet standards and their capacity to show competence in certification, What is the difference between the terms "accreditation" and "certification"? The definition of these terms is given in EN ISO/IEC 17000:2004: Para 5.6 Accreditation Third-party attestation related to a conformity assessment body conveying formal demonstration of its competence to carry out specific conformity assessment tasks. Para 5.5 Certification Third-party attestation related to products, processes, systems or persons. (UKAS website)

Accreditation Bodies An accreditation body executes the task of accreditation. In effect it certifies that the certifiers are doing their job correctly.

Accreditation Phase 3rd stage of STSC development during which the accreditation of certification bodies takes place alongside all other services

Accreditation Service A service to certificates to that offers accreditation. The running of the accreditation service by the STSC envisages the contracting of an external accreditation body to implement its service.

business-to-business Communication from one business to another business-to-consumer Communication from a business to the

consumer Capacity building measures Actions that improve the ability of an

organization to function, based on development of human, material and financial resources. Measures can include improved governance and communications structures to resource allocation and finance.

Certification bodies Certification is defined as the procedure by which the certification/awarding body gives written assurance and awards a logotype (to the consumer and the industry in general) to signify that a product, process, service, or management system conforms to specified requirements.

7 Glossary of

terms



Civil Society UN term referring to non government elements

of society and classified as Major Groups Conformity Assessment Conformity assessment is the process by

which a body, that is known to be competent and credible, issues a certificate that a particular business or product will comply with a particular standard (AF website)

CSR Corporate Social Responsibility – Public and Private Sector responsible governance

FSC Forestry Stewardship Council Framework of Programmes on Sustainable Consumption and Production (SCP)

Part of the WSSD Outcomes agreed in Johannesburg 2002. By 2012 a Framework of programmes should be established (JPOI section 3)

geo-referenced corroboration Verification of data by use geographical location/proximity as part of the method

governance The process of policy making with the organisations and institutions of the state &corporate entities, and other legal institutions.

Governance Model A blueprint of a governance system green purchasing eContent Internet content point to environmentally

friendly products and services in-kind support Donations of actions that contribute to the

STSC work program that can be given an equivalent financial value

institutional and governance framework of the STSC

The set of forums, committees and elect posts that constitute the power relationships of the STSC process

IAF International Accreditation Forum ISEAL International Social and Environmental

Accreditation and Labelling Alliance JPOI Johannessburg Plan of Implementation agreed

at the WSSD in 2002 Major Groups UN categorisation of civil society members

composing of Business and Industry, Local g Government, NGOs, Trade Unions, Women’s Groups, Youth groups, Farmers, Indigenous People, Scientists and Academics.

multi-stakeholder network Network of stakeholders from across the spectrum of major groups, usually including a mixed trilogy of business enterprises, public administrations and NGOs

multi-stakeholder partnership Group of stakeholders who have joined together within a common agreement

Multi-Stakeholder Road Map Calendar of action covering a range of different stakeholder processes related to each other

Network phase The 1st Phase of the STSC during which a global knowledge network is established

Partnership Phase The 2nd Phase of the STSC during which the capacity for setting up the STSC service is developed

RSS 'Really Simple Syndication' news feeds. In essence, the feeds themselves are just web



pages, designed to be read by computers rather than people. News feeds allow you to see when websites have added new content. You can get the latest headlines and video in one place, as soon as its published, without having to visit the websites you have taken the feed from

responsible tourism Tourism that is considered to be conducted

with respect to social and environmental principles

tourism certification knowledge network A group of organisations actively exchanging information, developing expertise and taking common actions in the field tourism certification

Small and Medium Enterprises (SMEs) Businesses of up to 10 – 99 employees Seed funding Initial donation to help start a bigger process Stakeholder Council A group of representative stakeholders

proposed by the STS knowledge network members to sit and discuss STSC matters in an advisory capacity.

standard-setting Process of seeking agreement on standards STSC-accredited’ certification bodies Organisations that are accredited by the STSC

service STSC-accredited, certified tourism service providers

End-users of certification bodies that are accredited by the STSC service

STSC Board of Directors Body elected by the knowledge network to manage the full STSC service

STSC-contracted accreditation body Organisation specialised in accreditation that the STSC can use when outsourcing the accreditation service

STSC Executive Director Highest member of staff STSC Membership base The knowledge network on tourism

certification STSC Partnership Executive Board The board established to oversee the

partnership phase. STSC Temporary Steering Committee The committee in charge of the current STSC

phase, and who will also run the network phase

synchrony The planned scheduling or occurrence different events in harmony

synergy The effect of joining various processes in order to achieve a whole that is greater than the sum of the parts.

territorially networked marketing strategy A marketing strategy that uses alliances and partnership to cover different geographical areas

Tourism supply chain The chain of tourism sector goods and services that links producers to consumers

Tourism value chain The tourism supply chain within its institutional framework

triple bottom line accounts. Accounting system which demonstrates economic, environmental and social performance figures (cf Global Reporting Initiatives)



Value Chain Map A map of the supply chain and its stakeholders WSSD Plan of Implementation The key outcomes of the 2002 World Summit

on Sustainable Development hosted by the uN in Johannesburg South Africa



8. Bibliography and Websites For a complete list of supporters and more information on the STSC and the consolidation of regional networks of certification programs, please visit www.stscouncil.org. The following list provides an entry point to those organisations mentioned in this report: Selected Websites International Standards Organisation http://www.iso.org/iso/en/comms-markets/industryforums/services/tourism.html International Social and Environmental Accreditation Alliance ISEAL http://www.isealalliance.org/ International Accreditation forum IAF http://www.iaf.nu/ International Federation of Organic Agriculture Movements IFOAM http://www.ifoam.org/index.html Forestry Stewardship Council FSC http://www.fsc.org Marine Stewardship Council MSC http://www.msc.org/ Social Accountability International www.sa-intl.org/ UNCSD http://www.un.org/esa/sustdev/csd/policy.htm UNEP Task Force on Sustainable Tourism http://www.uneptie.org/pc/sustain/resources Global Reporting Initiative GRI www.globalreporting.org/ World Business Council on Sustainable Development WBCSD http://www.wbcsd.org/t National Sustainable Development Strategy Network http://www.nssd.net/index.html Bellagio Forum for Sustainable Development http://bfsd.server.enovum.com/en/ Stakeholder Forum www.stakeholderforum.org www.unedforum.org/ Regions for Sustainable development Network (R4SD Network) Waleshttp://www.sustainableregions.net/site/index.php?article=121 Rainforest Alliance www.rainforest-alliance.org/ Internaitonal Ecotoruism Society TIES www.ecotourism.org Ecotrans www.ecotrans.org Network of the Americas http://www.rainforest-alliance.org/tourism.cfm?id=network Pacific & Asia Travel Association PATA www.pata.org VISIT www.visit.org EU Good Governance http://ec.europa.eu/governance/index_en.htm Destinet Sustainable Tourism Portal http://destinet.ewindows.eu.org

8

Bibliography and web

references



Selected Bibliography Rainforest Alliance Final Report March 2003, Version 8.6. Sustainable Tourism Stewardship Council - Raising the Standards and Benefits of Sustainable Tourism and Ecotourism Certification UNEP Tourism Certification as a Sustainability Tool: Assessment and Prospects author X Font Nov 2005 UNEP (2005). The trade and environmental effects of ecolabels: assessment and response. Paris, United

Nations Environment Programme. UNEP and WTO (2005). Making tourism more sustainable: a guide for policy makers. Paris, United

Nations Environment Programme World Bank (2005). CSR in the tourism industry? the status of and potential for certification, codes of

conduct and guidelines. Washington DC, World Bank WTO (2002). Voluntary Initiatives for Sustainable Tourism. Madrid, World Tourism Organization. WTO (2003). Recommendations to governments for supporting and/or establishing national certification systems for sustainable tourism. Madrid, World Tourism Organization The International Ecotourism Society 2006 Financial Sustainability of Certification Programs Abi Rome, Alice Crabtree

UNCTAD – IISD initiative Governance and Multi-stakeholder Processes March 2004 Study Prepared for the Sustainable Coffee Partnership Prepared byNancy Vallejo Pierre Hauselmann UN General Assembly 2002 Resolution adopted by the General Assembly 56/76. Towards Global Partnerships UN Commission on Sustainable Development Twelfth session 2004 Partnerships for Sustainable Development Report of the Secretary-General Law of Sustainable Development Prof. M Decleris DG Environment 2000



9: About this Consultancy

This appendix will enable the reader of this document to see what contract deliverables were expected from the consultants. These can then be matched to the chapters to see the outputs and tools themselves. These outputs are to be found in this document plus in the following accompanying documents: Excel Sheets • STSC BUSINESS PLAN OVERVIEW 2007 – 2012 • Network Phase Budget • Partnership Phase Budget • Accreditation Phase Budget • Accreditation Phase Fee calculator (M Wenban Smith) Word Document • Accreditation Phase Budget Discussion Notes (M Wenban Smith) Powerpoint Presentation • STSC VISION and IMPLEMENTATION PROCESS • STSC BUSINESS PLAN 2007 – 2012

Project Outputs & Deliverables STSC Project Outputs: Consultant Deliverables, Roles and Responsibilities This tender response is divided into nine separate but related outputs, which are listed below: 1 Sharing a Common Vision - How will the STSC Look as it Develops between 2006 -2012? 2 STSC’s Specific Characteristics - the Global Organization Framework 3 An Implementation Strategy for the Establishment of the STSC – Networking, Association and Accreditation Development 4 Specific Operational, Administrative and Financial Needs of the STSC to meet the Implementation Strategy 5 A Business Model of Financial Sustainability –Planning Revenues to Guarantee the STSC’s Sustainability 6 Marketing Strategy – Growth and Development Strategies that Reflect Sectoral Conditions 7 Contacts and Sources for Information and Support 8 Timetabling the implementation programme – the 2006 -2012 Multi-Stakeholder Road Map 9 Final Report Details of each Output

9 About this Consultancy



1 Sharing a Common Vision - How will the STSC Look as it Develops between 2006 -2012? Preliminary Stakeholder Discussion Document - the STSC Draft Implementation Plan 2006 -2012- A Working Vision

1st draft 16th June. Final 31st August. (NB This deadline was extended to 15th September owing consultation process extension, which was then extended to 30 November. This also applies to all other end of August deadlines)) 2 STSC’s Specific Characteristics - the Global Organization Framework a) Governance model of excellence incorporating results from existing benchmarking studies and related to key stakeholders b) Accreditation implementation model of excellence. From the models the following inventories can be detailed: - Inventory of items of fixed capital costs - Inventory of items of core personnel costs - Inventory of communications and networking items for costing This output is related to output 3, needing to describe the overall STSC growth in the three phases of its development (network, association, accreditation) in sufficient detail to apply costs. The model outlines the relationships between the key stakeholders, and the functions of networking, standards development, training, branding/marketing, accreditation, etc. The lead consultant prepares the chapters relating to the ‘network’ phase, the 2nd consultant prepares the chapters relating to the ‘associate’ and ‘accreditation’ phases. The first stage of the work is to describe in some detail the functions, and necessary resources to implement the functions. Specific costs are attached after these functions have been discussed (see 4, below). Progress to be presented to Steering Committee on 22nd/23rd June. 1st draft 31st July 2nd draft 31st August Final 30th November 3 An Implementation Strategy for the Establishment of the STSC – Networking, Association and Accreditation Development Quarterly progress map of the 3 phase implementation plan, with key milestones to lead and record progress

This section specifies, in three-monthly steps, how to set up the STSC conformity assessment scheme, starting with a network and ending with a fully functional accreditation capacity. The lead consultant will focus on the development and implementation of the Network Phase, the 2nd consultant on the Association and Accreditation phases. The lead consultant will combine the work into an integrated output. (This is the “design for a tourism service conformity assessment implementation model of excellence“.) 1st draft 31st August Final 30th November 4 Specific Operational, Administrative and Financial Needs of the STSC to meet the Implementation Strategy Costs/Expenses Formula in Excel and Word formats.

This section specifies the full implementation costs for the STSC conformity assessment scheme, including the costs of running the scheme as well as the project development costs. Essentially it adds together the costs associated with sections 2 and 3, above. It covers the years 2007 - 2012 1st draft 31st August Final 30th November



5 A Business Model of Financial Sustainability –Planning Revenues to Guarantee the STSC’s Sustainability Revenue Formula in Excel and Word formats. This section specifies the projected revenue for the project development and long term running of the STSC conformity assessment scheme. It covers the years 2007 – 2012. The lead consultant will focus on potential funding sources and strategies for raising funding. The 2nd consultant will focus on revenues from STSC services (membership, accreditation, branding, training). In both cases the consultants will aim to engage consultees to ensure that the projections are as solid as possible.

1st draft 31st August Final 30th November 6 Marketing Strategy – Growth and Development Strategies that Reflect Sectoral Conditions - A marketing strategy concept updating and elaborating the feasibility report process from network stage through to accreditation stage, linked to the tourism value chain model - A marketing calendar of activities, regionally and global specified, and matched to the business planning documents. Lead consultant Including strategy for increasing numbers of tourist service providers with STSC accredited certificates in all global regions 1st draft 31st August Final 30th November 7 Contacts and Sources for Information and Support - Model of an evolving global knowledge network for the certification and accreditation process - A Stakeholder Grid of contact information and organisation profiles. - Draft UN Type II Partnership Application - DestiNET Portal profile Lead Consultant Note: these outputs contribute to the “global mapping tool of the world of b2b and b2c tourism product and service certification” created through the application of the tourism supply chain and destination development tool 1st draft 31st August Final 30th November 8 Timetabling the implementation programme – the 2006 -2012 Multi-Stakeholder Road Map A road map for the 2006 -2012 process showing key project targets, milestones, accompanying stakeholder responsibilities and duties and accompanying documents and events Lead Consultant 1st draft 31st August Final 30th November 9 Final Report The final report will include reference to the Powerpoint presentation that will be developed for those who need an induction into the STSC management process. Lead Consultant 30th November



A list of Final Recommendations Recommendation 1

Agree to set up a work group and adopt the executive text as the summary overview of the STSC capacity building strategy 2007-2012, with the intention to discuss each specific chapter recommendation.

Recommendation 2 Adopt the Vision chapter 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

Recommendation 3 1) Adopt the governance structures as recommended in this Section B ch 2 model by drawing up a legal document that takes the model definitions and constitutes the STSC governance program with named organisations in place

Recommendation 4 1) Adopt this three phased development process as recommended in this section( B ch 2) and as elaborated fully in section C ch1.

Recommendation 5 1) Validate the estimated cost requirements by hosting a general discussion as an agenda item after full circulation of the document and sufficient consideration time. Recommendation 6 1) Validate the business capacity-building strategy through detailed discussion as an agenda item, after full circulation of the document and sufficient consideration time. Recommendation 7 1) Adopt the Marketing Strategy- as recommended in this Section B ch 5 and as timetabled in the Multi-Stakeholder Roadmap - as the guidance document for the STSC marketing programme. Recommendation 8

1) Agree on the multi-stakeholder and territorial classification system to be used by the STSC 2) Adopt an expanded (more filled in) stakeholder grid as the basis for the global knowledge network

on tourism certification Recommendation 9

3) Agree to start the implementation of the knowledge network phase of the STSC business strategy. 4) Draw up a letter of invitation to the knowledge network potential members. 5) Establish membership signing process based on this report.

Recommendation 10 1) Sign a Memorandum of Understanding between temporary steering committee members that they

are jointly committed to the STSC implementation process on a phased basis, based on the recommendations suggested in this report and agreed to by the board.

2) Allocate roles and responsibilities to steering group members to achieve the network phase milestones highlighted in the Multi-Stakeholder Roadmap Section B ch7 and specified in the Implementation process Section B ch2 and Section C ch1.

3) Agree on specific tools to use to execute the work program (Section C) 4) Set a date for the formal launch of the knowledge network on tourism sector



‘That’s the end of the Technical Tools

Section. You can now go to any of the Excel workbooks to look at the full financial picture underlying this document . You should start with the workbook ‘ Business Plan Primary

Overview 2007-2012.xcl’ . To use all the sheets as a calculating tool, go to the Notes

to the Business Plan Section’, which will show you how to interpret and edit the data.

Documents

Governance Systems, Business and Marketing Plans for Setting