South Asia Subregional Economic Cooperation …...South Asia Subregional Economic Cooperation Tourism Development Plan A subregional cooperation program is underway in eastern South

ASIAN DEVELOPMENT BANKAND

SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATIONTOURISM WORKING GROUP

TOURISM RESOURCE CONSULTANTS LTD, NEW ZEALANDIN ASSOCIATION WITH

METCON CONSULTANTS PTE LTD, NEPAL

December 2004

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SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION

Photo Credits:Les ClarkLisa ChoegyalDepartment of Tourism, BhutanDepartment of Tourism, IndiaNepal Tourism Board

© 2005 Asian Development BankAll rights reserved.

This book was prepared by staff and consultants of the Asian Development Bank(ADB). The analyses and assessments contained herein do not necessarily reflectthe views of the Asian Dvelopment Bank, or its Board of Directors, or thegovernments its members represent.

ADB does not guarantee the accuracy of the data included in this publication andaccepts no responsibility for any consequences of their use.

The term “country,” as used in the context of ADB, refers to a member of ADBand does not imply any view on the part of ADB as to the member’s sovereignty orindependent status.

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel (63-2) 632-4444Fax (63-2) 636-2444www.adb.org

Asian Development Bank. 2004.South Asia Subregional Economic Cooperation Tourism Development Plan

Publication Stock No. 111304

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ABBREVIATIONS

ABBREVIATIONS

ABTO — Association of Bhutan Tour OperatorsACAP — Annapurna Conservation Area ProjectADF — Asian Development FundACT — Association for Conservation and TourismADB — Asian Development BankASEAN — Association of South East Asian NationsAPETIT — Asia Pacific Educational Training Institute for TourismASI — Archaeological Survey of IndiaBBIN — Bangladesh Bhutan India NepalBIMST-EC — Bay of Bengal Initiative for Mult-Sectoral Technical and

Economic Cooperation (formerly Bangladesh India MyanmarSri Lanka Thailand—Economic Cooperation)

BPC — Bangladesh Parjatan CorporationBZ — buffer zoneCAREC — Central Asia Regional Economic CooperationCBO — community-based organizationCI — Conservation InternationalDFID — Department for International Development, United KingdomDDC — district development committeeDMC — developing member country (of ADB)DNPWC — Department of National Parks and Wildlife ConservationDOA — Department of ArchaeologyDONER — Department of Development of the North East RegionDOT — Department of TourismECOSS — Ecotourism and Conservation Society of SikkimEIRR — economic internal rate of returnENVIS — Environmental Information System for EcotourismEU — European UnionFDI — foreign direct investmentFICCI — Federation of Indian Chambers of Commerce and IndustryFIRR — financial internal rate of returnGEF — Global Environment FacilityGMS — Greater Mekong SubregionHMTTI — Hotel Management and Tourism Training Institute, BhutanHRD — human resource developmentICIMOD — International Center for Integrated Mountain DevelopmentICIMOS — International Commission on Monuments and SitesIDBI — Industrial Development Bank of IndiaIFC — International Finance CorporationIITTM — Indian Institute of Tourism and Travel ManagementIMF — International Monetary FundINGO — international nongovernment organizationINTACH — Indian National Trust for Arts and Cultural HeritageJBIC — Japan Bank for International CooperationJICA — Japan International Cooperation Agency

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KCA — Kanchenjunga Conservation Area, NepalKCC — Khangchendzonga Conservation Committee, SikkimKEEP — Kehedi Ecotourism and Ecodevelopment PromotionsKMTNC — King Mahendra Trust for Nature ConservationLDT — Lumbini Development TrustLTO — local tourism organizationMBNPBZ — Makalu-Barun National Park and Buffer ZoneMFI — multilateral financing institutionMOCAT — Ministry of Civil Aviation and Tourism, BangladeshMOCTCA — Ministry of Culture, Tourism and Civil Aviation, NepalMOF — Ministry of FinanceMOT — Ministry of TourismMOU — Memorandum of UnderstandingNATHM — Nepal Academy of Tourism and Hotel ManagementNCD — Nature Conservation Division, BhutanNEC — North Eastern CouncilNEDFI — North East Development Finance CorporationNGO — nongovernment organizationNRI — non-resident IndianNTB — Nepal Tourism BoardNTO — national tourism organizationOCR — Ordinary Capital ReservesPAP — Protected Area PermitPATA — Pacific Asia Travel AssociationPIO — person of Indian originPPP — private-public partnershipPPT — pro-poor tourismPRC — People’s Republic of ChinaRCNP — Royal Chitwan National ParkRSPN — Royal Society for the Protection of Nature, BhutanSAARC — South Asian Association for Regional CooperationSABF — South Asia Business ForumSADB — South Asia Development BankSADF — South Asia Development FundSAGQ — South Asian Growth QuadrangleSASEC — South Asia Subregional Economic CooperationSATTE — South Asia Tourism and Travel ExchangeSEDF — South Asia Enterprise Development FacilitySME — small and medium enterpriseSTIDP — Second Tourism Infrastructure Development ProgramSNP — Sagarmatha National ParkSNV — Netherland Development OrganisationSPCC — Sagarmatha Pollution Control CommitteeSTDU — Sustainable Tourism Development UnitSTF — Sustainable Tourism ForumSTN — Sustainable Tourism NetworkTA — technical assistanceTAAI — Travel Agents Association of IndiaTAAS — Travel Agents Associated, Sikkim

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ABBREVIATIONS

TAR — Tibet Autonomous RegionTDC — Tourism Development CommitteeTDP — Tourism Development PlanTIF — Tourism Investment FundTFCI — Tourism Finance Corporation of IndiaTMI — The Mountain InstituteTOAB — Tour Operators Association of BangladeshTRC — Tourism Resource ConsultantsTRPAP — Tourism for Rural Poverty Alleviation ProgramTSF — tourism service feeTWG — Tourism Working GroupUNDP — United Nations Development ProgrammeUNEP — United Nations Environment ProgrammeUNESCAP — United Nations Economic and Social Commission for Asia

and the PacificUNESCO — United Nations Educational Scientific and Cultural

OrganisationUP — Uttar PradeshVDC — village development committeeVFR — visiting friends and relativesWHS — World Heritage SiteWTO — World Tourism OrganizationWTTC — World Travel and Tourism CouncilWWF — World Wide Fund for Nature/World Wildlife Fund

NOTE

In this report, “$” refers to US dollars

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Map of the South Asia SubregionalEconomic Cooperation Subregion

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ABBREVIATIONS

CONTENTS

Page

Map of South Asia Subregional Economic Cooperation Subregion viExecutive Summary ix

I. INTRODUCTION 1A. Background of the SASEC Tourism Development Plan 3B. Terms of Reference for Preparation of the TDP 3C. Approach and Methodology 4D. Acknowledgements 6E. Format of the TDP 7

II. THE PLANNING CONTEXT 9A. Background of SASEC 11B. Profile of SASEC Countries 13C. World Tourism 18

III. ANALYSIS OF SASEC TOURISM 25A. Tourism Patterns 26B. Tourism Development Agendas 40C. Tourism Attractions 51D. Issues and Constraints 59

IV. STRATEGIES FOR SUBREGIONAL COOPERATION IN TOURISM 65A. Previous Decisions of Tourism Working Group 67B. Core Strategic Directions 68C. Broad Strategies 69D. Additional Principles 70

V. SASEC TOURISM DEVELOPMENT FRAMEWORK 71A. Structure of the Framework 73B. Generic Programs 75C. Product-Focused Programs 94

D. Programs Focused on the Private Sector 106E. Key Area Programs 108

VI. IMPLEMENTATION ARRANGEMENTS 113A. TWG and its Development Partners 115B. Mobilizing Resources 118C. Public-Private Partnerships 127D. Enhancing the Pro-Poor Benefits of Tourism 129E. Managing the Impacts of Tourism 132F. Relationships with other Regional Groupings 134

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VII. DEVELOPMENT MATRIX AND ACTION PLAN 139

APPENDIXES

1. Ideas from Planning Workshops 1592. South Asia Subregional Economic Cooperation Tourism Investment Fund 1723. Economic and Financial Analysis of the Tourism Development Plan 1814. Key Area Development Concepts 1905. Format for Submitting Project Ideas to the Tourism Working Group 2036. Participants in the Planning Process 2087. Documents Consulted 221

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ABBREVIATIONS

Executive Summary

Tourism is a priority sector in the South AsiaSubregional Economic Cooperation (SASEC)program. At its second annual meeting, the SASECTourism Working Group (TWG) identified thepreparation of a subregional tourism masterplanas a priority and requested support from the AsianDevelopment Bank (ADB) to prepare the plan. TWGrefined this request at its third meeting, agreeingthat it should be a subregional TourismDevelopment Plan (TDP or “the Plan”), and that itshould build upon existing tourism plans in eachof the four SASEC countries: Bangladesh, Bhutan,India and Nepal. TWG also agreed that the Planshould establish a thematic framework for futuretourism development, and that planning shouldstart with two common themes: Ecotourismbased on Natural and Cultural Heritage, andBuddhist Circuits.

This TDP is the result of ADB technicalassistance (TA) implemented through aninternationally recruited planning team working inclose cooperation with the tourism ministries andnational tourism organizations (NTOs) of the fourSASEC countries. The Planning Team’smethodology emphasized in-country consultationswith stakeholders at national workshops aimed atunderstanding individual tourism developmentagendas. Macro-level subregional analysis was alsoundertaken. The resulting ideas were consolidated,and then discussed with TWG and prospectivedevelopment partners at a subregional workshopduring the fourth meeting of TWG at Thimphu inBhutan on 26 May 2004. TWG and developmentpartners contributed to the programs and projectsoutlined in the TDP. The Thimphu workshopstrongly endorsed the overall strategic directionsand the specific projects in the Plan.

The TDP presents profiles of existing tourismpatterns and the future tourism developmentagendas of the four countries. It then proposes corestrategic directions for TWG that will build uponand add value to the national agendas. The corestrategic directions include (i) tourism that issustainable and contributes to the reduction of

poverty, (ii) branding that focuses on SASEC’sproducts and not on the SASEC subregion itself,(iii) initiation of joint marketing before theintroduction of measures to ensure product quality,(iv) repositioning the subregion as a tourist-friendly destination, (v) facilitating thedevelopment of a more competitive tourismindustry, and (vi) improving tourism links withneighboring countries. With these strategicdirections in mind, TWG will embark on its ownagenda of subregional activities. In the future, TWGwill be open to the introduction by any interestedstakeholder of new activities into the agenda.

As a framework for the initial activities of TWG,the TDP presents seven subregional programs and23 projects. The programs begin with long-term,generic issues of concern to all countries:Coordinated Marketing, Enhancing ProductQuality, Facilitating Travel, and Developing HumanResources. Two product-focused programs pick upthe previously agreed product themes: DevelopingEcotourism Based on Nature and Culture, andDeveloping Buddhist Circuits. The seventhprogram is aimed at the private sector: Enablingthe Private Sector.

An eighth program is focused on the futurerole of TWG in fostering national projects in KeyAreas. Conceived as focal areas for tourism sectordevelopment arising from TWG subregionalprograms, each of the 11 proposed Key Areasencompass portions of at least two countries andhave growth potential of subregional significance.TWG will maintain a general strategic interest intourism planning in the Key Areas, leaving theactual development projects to individualgovernments. The 23 subregional projects arepresented under program headings. Financing andimplementation arrangements are stipulated andpotential development partners are identified. TheKey Area program presents 33 projects forimplementation at the national level.

These programs and projects will set thefuture agenda for TWG. A summary DevelopmentMatrix and Action Plan is included for use by TWG

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to track progress. Implementation strategies areoutlined and roles are summarized. The aggregatecost of the 23 subregional projects is approximately$25 million, while the aggregate cost of nationalprojects in Key Areas is estimated at $50 million.The total cost of the Plan is thus about $75 million.

An economic and financial analysis of thesubregional programs and projects yielded anestimate of their economic return of 35%. At thefourth TWG meeting, the four NTOs requestedADB’s ongoing assistance to help coordinate andmobilize resources for implementation of the TDP.

INTRODUCTION

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INTRODUCTION

A. Background of theSouth Asia SubregionalEconomic CooperationTourism Development Plan

A subregional cooperation program isunderway in eastern South Asia based on theestablishment of a South Asian Growth Quadrangle(SAGQ), comprising Bangladesh, Bhutan, India,and Nepal. The Asian Development Bank (ADB) issupporting the participating countries throughregional technical assistance (TA) aimed atestablishing a country advisors group and sectorworking groups within the SASEC program.Tourism is one of the priority sectors. ADB’s TAsupports meetings of the SASEC Tourism WorkingGroup (TWG). The TWG has met four times since2001, most recently in May 2004 at Thimphu inBhutan.

At its second meeting, TWG identified thepreparation of a subregional tourism masterplanas a priority activity, and asked ADB for TA tosupport its preparation. The third meeting of TWGrefined the proposal, agreeing that it should be asubregional tourism development plan that buildsupon existing tourism plans in each of the fourcountries. It was also agreed that planning shouldstart with two common themes: ecotourism basedon the natural and cultural heritage of thesubregion, and Buddhist circuits in the SASECcountries. Additionally, TWG agreed and that theresulting plan should establish a thematicframework for future tourism development thatwould become the future agenda of TWG.

ADB was the Executing Agency for this TA. Acontract for the TA was signed on 23 December2003, and a Planning Team consisting of nationaland international consultants commenced work inJanuary 2004. The work was undertaken on behalf ofTWG and carried out in close cooperation with thetourism ministries and national tourismorganizations (NTOs) of the four SASEC countries.Tourism Resource Consultants (TRC) of NewZealand led the Planning Team, in association with

METCON Consultants of Nepal. The Planning Teamconsisted of:

(i) Les Clark —Tourism Planning Specialistand Team Leader

(ii) Lisa Choegyal—Marketing and ProductDevelopment Specialist

(iii) David Husband—Tourism FinanceSpecialist

(iv) Faruque Hasan—Tourism PlanningSpecialist, Bangladesh

(v) Sonam Tobgay—Tourism PlanningSpecialist, Bhutan

(vi) MP Bezbaruah—Tourism PlanningSpecialist, India

(vii) MB Shrestha—Tourism PlanningSpecialist, Nepal

(viii) RS Pradhan—Tourism Economist

The work was scheduled over a period of 6months. A Preliminary Draft Tourism DevelopmentPlan (TDP) was submitted to ADB on 22 May, 2004.The Planning Team’s findings were discussed withkey stakeholders at a subregional workshop hostedby TWG in Bhutan on 26 May 2004. The Team thensubmitted a Draft TDP to ADB on 4 June 2004. ADB’scomments were incorporated and this Final TDP,which was submitted in August 2004.

B. Terms of Reference forPreparation of the TDP

The Terms of Reference (TOR) for the TAestablished the purpose of the planning work as:prepartion, with active participation by the tourismsectors of the SASEC countries, of a SASEC TourismDevelopment Plan that will provide a thematicframework of programs and projects for the futuresubregional cooperation activities of the SASECTWG. The SASEC TDP should contribute to theoverall goal of achieving, through subregionalcooperation, significant growth in tourism leadingto overall economic growth and reduction of ruralpoverty in the SASEC subregion.

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The resulting ideas were consolidated, thendiscussed with TWG and its prospectivedevelopment partners at a subregional workshopduring the the fourth meeting of TWG in May 2004at Thimphu.

2.2.2.2.2. WWWWWork Programork Programork Programork Programork Program

The Planning Team’s work was carried out in fivephases as detailed below.

PHASE I:PHASE I:PHASE I:PHASE I:PHASE I: HOME OFFICE RESEARCH AND WORKHOME OFFICE RESEARCH AND WORKHOME OFFICE RESEARCH AND WORKHOME OFFICE RESEARCH AND WORKHOME OFFICE RESEARCH AND WORKPLANNINGPLANNINGPLANNINGPLANNINGPLANNING

Timeframe : 24 December 2003 to 25 January2004.

Activities : Research, literature reviews, workplanning, and preparation forworkshops.

PHASE II:PHASE II:PHASE II:PHASE II:PHASE II: NANANANANATIONAL LEVEL CONSULTIONAL LEVEL CONSULTIONAL LEVEL CONSULTIONAL LEVEL CONSULTIONAL LEVEL CONSULTTTTTAAAAATIONSTIONSTIONSTIONSTIONS

Timeframe : 26 January to 16 February 2004.

Activities : An inception workshop in Nepal,followed by an intensive round ofconsultations in the four countries. Ineach country, key stakeholders werefirst consulted individually. With theNTO’s active assistance, nationalworkshops were then convened. Publicand private sectors of the tourismindustry as well as various otherconcerned stakeholders were invited tointeract with the Planning Team and tocontribute ideas for the TDP. In the caseof India, two national workshops wereheld, one in New Delhi and one inKolkata. Appendix 1 contains details ofthe project ideas that arose at eachnational workshop. The schedule ofnational workshops is shown below.

• 29 January 2004, national workshop for Nepal,hosted in Kathmandu by the Nepal TourismBoard (NTB).

• 5 February 2004, national workshop for Bhutan,hosted in Thimphu by Bhutan’s Department ofTourism (DOT).

The TOR stipulated that the SASEC TourismDevelopment Plan should include:

(i) a thematic framework of programs andprojects for subregional cooperationactivities of the SASEC TWG over theperiod 2004–2014,

(ii) specific project ideas and concept plans forappropriate tourism development in KeyAreas where tourism resources are sharedby two or more countries, and

(iii) project ideas for joint destinationmarketing.

The TDP does not aim to be a “masterplan.”Rather, it aims to complement the national tourismplans of the four member countries by identifyingopportunities for subregional cooperation intourism development and promotion that will beof mutual benefit. The essential rationale is thatimplementation of this Plan will result in a level andquality of tourism that is much higher than thatachievable through the actions of the individualcountries working alone.

C. Approach and Methodology

1.1.1.1.1. Overall ApproachOverall ApproachOverall ApproachOverall ApproachOverall Approach

The Planning Team’s overall approach was toemphasize in-country consultations withstakeholders, in order to obtain and understandgovernment and industry views on how best to usesubregional cooperation as a means forstrengthening both intra-regional and inter-national tourism. The essential strategy was to gainthorough understanding of the tourismdevelopment agendas of the four countries. Thiswas achieved by research in each country by thenational tourism planning specialists, followed bynational stakeholder workshops hosted by theNTOs. In addition, the Team took a macro-planningperspective, seeking ways to foster tourism sectorgrowth by analyzing tourism and developmentpatterns of the SASEC subregion as a whole. Theoutcomes of these two approaches were merged.

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INTRODUCTION

• 12 February 2004, national workshop for India,hosted in Kolkata by India’s DOT.

• 15 February 2004, national workshop forBangladesh, hosted in Dhaka by Bangladesh’sMinistry of Civil Aviation and Tourism (MOCAT).

• 20 February 2004, national workshop for India,hosted in New Delhi by India’s DOT.

PHASE III: INTEGRAPHASE III: INTEGRAPHASE III: INTEGRAPHASE III: INTEGRAPHASE III: INTEGRATION, FOLLOW-UP VISITS,TION, FOLLOW-UP VISITS,TION, FOLLOW-UP VISITS,TION, FOLLOW-UP VISITS,TION, FOLLOW-UP VISITS,ADDITIONAL RESEARCH, ANALADDITIONAL RESEARCH, ANALADDITIONAL RESEARCH, ANALADDITIONAL RESEARCH, ANALADDITIONAL RESEARCH, ANALYSIS, ANDYSIS, ANDYSIS, ANDYSIS, ANDYSIS, ANDREPORTINGREPORTINGREPORTINGREPORTINGREPORTING

Timeframe : 17 February to 22 May 2004.Activities : Visits and consultations associated

with priority Key Areas arising from theworkshops, completion of research,and preparation of the PreliminaryDraft and Draft Final 3Reports. Visitsincluded participation at the SouthAsia Tourism and Travel Exchange(SATTE) in New Delhi from 25 to 27March 2004. (See Appendix 1 for areport on the consultations at SATTE.)Five members of the Planning Teamalso visited Sikkim and North WestBengal over the period 26 April to 2May 2004. The Ecotourism andConservation Society of Sikkim(ECOSS) helped convene PlanningWorkshops in Gangtok on 29 April 2004and in Siliguri/Bagdogra on 30 April2004. Appendix 1 also contains detailsof the ideas that arose from thePlanning Workshops in this phase.

PHASE IV: SUBREGIONAL CONSULPHASE IV: SUBREGIONAL CONSULPHASE IV: SUBREGIONAL CONSULPHASE IV: SUBREGIONAL CONSULPHASE IV: SUBREGIONAL CONSULTTTTTAAAAATIONTIONTIONTIONTION

Timeframe : 22 May to 31 June 2004.Activities : The Team gathered for a Subregional

Workshop with TWG in Thimphu,Bhutan from 26 to 28 May 2004. TheTeam then debated changes to theDraft TDP based on the results of theWorkshop.

PHASE V: FINAL REPORTPHASE V: FINAL REPORTPHASE V: FINAL REPORTPHASE V: FINAL REPORTPHASE V: FINAL REPORT

Timeframe : 1 June to 31 July 2004.Activities : Team Leader coordinated final

changes to the TDP.

3.3.3.3.3. KKKKKey Features of the Methodologyey Features of the Methodologyey Features of the Methodologyey Features of the Methodologyey Features of the Methodology

Key features of the methodology utilized areoutlined below.

• All previous SASEC tourism planning work wasreviewed and built into the Team’sdeliberations.

• Existing subregional tourism markets,marketing, product demand and supply, costand quality competitiveness, and constraintsto tourism growth were analyzed.

• Existing national, state and district level plans,priorities, and institutional frameworks fortourism development were reviewed, withparticular reference to the two agreed themes.

• National policies, laws, and regulations—across all sectors—that influence or areinfluenced by the economic, social, andecological impacts of tourism development inthe agreed themes were evaluated.

• Potential development partners were identifiedand consulted individually.

• Key tourism resources shared by two or morecountries were identified and concept planswere prepared for their appropriate tourismdevelopment.

• A draft Program Framework with detailedproject ideas was prepared early in theplanning process and used for consultationswith stakeholders, including prospectivedevelopment partners, in order to help ensurea final output with wide acceptance.

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D. Acknowledgements

The Planning Team wishes to thank all thosewho participated in the study, as listed in Appendix4. The considerable contribution to the preparationof the Plan by ADB’s Project Officer Ms. SnimerSahni is gratefully acknowledged. TWG members,SASEC NTO Focal Persons, and all senior officialsof the SASEC NTOs generously gave time andenthusiastic support and made a majorcontribution by arranging and participating in theNational Workshops. In this regard, the Team wouldspecifically like to thank: Mr. B.M.M. Mozharul Huq,Mr. Md. Humayun Kabir, Dr. Mahbubur Rahman,and Mr. Mohammed Ahsanullah from Bangladesh;Mrs. Rathi Vinay Jha, Shri Amitabh Kant and Dr. VVenu from India; Mr. Lava Kumar Devacota, Mr.Shanker Prasad Koirala, Mr. Tek Bahadur Dangi andMr. Subash Nirola from Nepal; and Dasho KarmaDorjee, Dasho Lhatu Wangchuck, Dasho UgenTshechub, and Mr. Thuji D. Nadik of Bhutan. TheTeam also gratefully acknowledges the prospectivedevelopment partners who were consulted andwent out of their way to participate in the study:

• Austrian Development Assistance, Bhutan• Bay of Bengal Initiative for Multi-Sectoral

Technical and Economic Cooperation (BIMST-EC) (via Delhi and Thailand)

• Department for International Development(DFID), India, Nepal, and United Kingdom (UK)

• Ecotourism and Conservation Society of Sikkim(ECOSS)

• Federation of Indian Chambers of Commerceand Industry (FICCI)

• Indian National Trust for Arts and CulturalHeritage (INTACH), New Delhi

• International Center for Integrated MountainDevelopment (ICIMOD)

• International Finance Corporation South AsiaEnterprise Development Facility (IFC SEDF)

• Japan Bank for International Cooperation(JBIC), India and Nepal

• Lotus Tours (Buddhist circuit specialists), NewDelhi

• Pacific Asia Travel Association (PATA)

• Cost-effective ways of promoting the agreedthemes in both intra- and inter-regionalmarkets through joint destination marketingwere prepared in consultation with thesubregion’s tourism marketers.

• Project ideas were identified, according toagreed screening and selection criteria, for thedevelopment of physical infrastructure neededto facilitate tourism growth under the twoagreed themes. Highest priority was accordedprojects shared by two or more countries (theseideas are included in the Key Areas program).

• Human resource development (HRD) needs ofgovernment agencies, the private sector,individual entrepreneurs, and communitiesassociated with the two themes were identified(one proposed project relates specially totraining of trainers).

• Needs for improvements in tourism facilitiesat border crossings were identified, as wereother improvements required to facilitate travelassociated with the agreed themes (oneproposed program relates to this).

• The proposed programs and projects includespecific ways to address the need for subregionalguidelines for tourism development, includingcriteria for a subregional code of conduct andgood practice for the tourism industry. They alsoinclude ways to ensure sustainable developmentand management of tourism in protected areas,and ways to preserve and enhance the rights ofindigenous people in tourism, with particularattention to the social impact of tourism ondistinct ethnic groups living in border areas.

• Mechanisms, especially financial mechanisms,to facilitate private sector investment intourism development associated with theagreed themes were developed, as were waysto link the private sector and communities (oneproposed program relates to this).

• An action plan outlining the immediatesequence of steps required for implemen-tation of the framework programs, a timeframefor implementation, and basic guidelines foreach country’s participation were prepared.

• Roles and procedures for TWG and other keyplayers in the implementation process wererecommended.

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INTRODUCTION

• Royal Society for the Protection of Nature(RSPB), Bhutan

• SAARC Secretariat, Kathmandu and ChamberTourism Council, Sri Lanka

• SATTE• SNV (Netherland Development Organisation),

Bhutan, Nepal, and the Netherlands• Sustainable Tourism Network (STN), Nepal• The Mountain Institute (TMI), Nepal, Sikkim,

and Tibet Autonomous Region (TAR), People’sRepublic of China (PRC)

• Tour Operators Association of Bangladesh andTour Planners, Dhaka

• United Nations Development Programme(UNDP), Bhutan, Nepal, and India

• United Nations Economic and SocialCommission for Asia and the Pacific(UNESCAP), Bangkok

• United Nations Educational, Scientific andCultural Organization (UNESCO), Bangkok andNew Delhi

• World Tourism Organization (WTO)• World Wildlife Fund (WWF), Bhutan and Nepal

E. Format of the TDP

Section II of the Plan establishes the broad contextfor planning by examining the background toSASEC, presenting profiles of the four membercountries, and providing an overview of worldtourism trends. Section III provides a detailedexamination of the SASEC tourism sector, analyzingtourism attractions and patterns as well as tourismdevelopment agendas, issues, and constraints inthe subregion and in each of the four SASECcountries.

Section IV presents overall strategies forsubregional cooperation in tourism, with emphasison strategies that underpin the selection of TWGprograms and projects. A comprehensive TourismDevelopment Framework for SASEC is presented inSection V, complete with a series of programs andprojects at both subregional and national levels.This is the heart of the TDP and sets the futureagenda for TWG.

Section VI provides a discussion ofimplementation strategies for mobilization ofresources, enhancement of the pro-poor benefitsof tourism, and management of the impacts oftourism. The roles of TWG and its developmentpartners as well as relationships with other regionalgroupings are also discussed in this section.Section VII presents a summary of the action-oriented aspects of the Plan in a DevelopmentMatrix and Action Plan, for use at TWG meetings.

Appendix 1 summarizes project ideas thatarose during the consultation workshops heldthroughout the subregion. Appendix 2 describes theproposed Tourism Investment Fund. Appendix 3presents the economic and financial analysis ofbenefits to SASEC from tourism, albeit in a generalmanner, as the proposed projects will need to bedefined further. Appendix 4 describes the Key AreaTourism Development Concepts that aresummarized in Section V.E. Appendix 5 contains astandardized form to be utilized for submission ofproject ideas to TWG. Finally, Appendix 6 listspeople and organizations consulted during theplanning process, and Appendix 7 lists data sourcesand reference material.

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INTRODUCTION

THE PLANNINGCONTEXT

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THE PLANNING CONTEXT

A. Background of SASEC

1.1.1.1.1. Definition of the SASEC SubregionDefinition of the SASEC SubregionDefinition of the SASEC SubregionDefinition of the SASEC SubregionDefinition of the SASEC Subregion

For purposes of this Plan, the SASECsubregion is defined as Bangladesh, Bhutan, 13 ofthe North, East, and North East states of India (WestBengal, Bihar, Uttar Pradesh, Orissa, Jharkhand,Assam, Meghalaya, Manipur, Tripura, Mizoram,Nagaland, Arunchal Pradesh, and Sikkim), andNepal. SASEC thus encompasses the EasternHimalaya–Bay of Bengal subregion of South Asia.

Distinction is made in the analysis betweenthe “SASEC subregion” as defined above, “SASECcountries” (Bangladesh, Bhutan, India, and Nepal),and “South Asia.” South Asia is normally used torefer to the seven countries of the South AsianAssociation for Regional Cooperation (SAARC)(Bangladesh, Bhutan, India, Maldives, Nepal,Pakistan, and Sri Lanka). However, when using WTOdata, South Asia also includes statistics fromAfghanistan and Iran. On the basis of Government

of India data, it has been estimated for the purposesof this Plan an average of 35% of all internationaltourists to India visit the 13 North, East, and NorthEast states of India.

2.2.2.2.2. Genesis of SASECGenesis of SASECGenesis of SASECGenesis of SASECGenesis of SASEC

In 1997, SAARC member countries agreed to theformation of a subgroup termed the South AsianGrowth Quadrangle (SAGQ), comprisingBangladesh, Bhutan, India, and Nepal. Goals forSAGQ included creation of an environment thatwould foster accelerated economic growth,improved infrastructure linking the four countries,and greater coordination of policies and projects.Cooperation was initially focused on sustainableutilization of natural resources (water and energy),trade and investment, transportation, and tourism.It was expected that initiatives in these areas wouldaccelerate broader cooperation within SAARC.Initially, for a variety of reasons, little was achievedunder the SAGQ framework.

Since 2000, ADB has taken a lead role inhelping SAGQ move forward. Under its South Asia

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Subregional Economic Cooperation (SASEC)Program, ADB is providing financial and technicalsupport for subregional cooperation, as well asacting as a catalyst and “honest broker” to helpbuild consensus among the four countries. ADB’sgoals for the program include pro-poor benefits,broad-based stakeholder participation, growth ofthe private sector, and infrastructure developmentin rural and border areas. Operational principles ofthe SASEC Program emphasize practical results,private sector involvement, and inclusion ofinvestment projects and projects for regulatory andpolicy reform.

Two sequential regional technical assistance(RETA) initiatives by ADB have helped establishworking groups and an institutional frameworkin support of the SASEC Program. RETA 5936helped member countries identify opportunitiesfor subregional cooperation in the prioritysectors of energy and power, transportation,tourism, environment, trade and investment, andprivate sector cooperation. RETA 6010 helpedinstitutionalize the sector working groups and toconsolidate progress achieved under RETA 5936.

Most working groups have met three timessince 2001, and all have recorded agreement on anumber of priorities for subregional cooperation.In the case of transportation, for example, theworking group has called for a review of existingbilateral transit agreements, simplification of cross-border inspections, standardization ofdocumentation requirements, and greaterinvolvement of the private sector.

TWG has met four times and has agreed thatits priorities should be improved access, jointdestination marketing, new product development,consolidation of successful projects, andmobilization of resources for tourism investments.As noted in the Introduction, TWG called forpreparation of this TDP with emphasis on highlypractical subregional initiatives for tourismpromotion, facilitation, and product development.Accordingly, the SASEC Program for 2003/04included an advisory TA to support prepartion of atourism development plan for the subregion. At itsfourth meeting, TWG hosted a subregionalworkshop as part of its participation in the finalstages of the preparation of the TDP.

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B. Profile of SASEC Countries

The four countries that comprise SASEC havea collective population of 1.2 billion and acombined GDP of approximately $570 billion(Tables 1 and 2). Per capita incomes average about$450, but vary widely from less than $250 (Nepal) toover $800 (Bhutan) (Table 3).

The more narrowly defined SASEC subregionis one of the world’s largest areas of poverty, with acollective population of almost 600 million. HumanDevelopment Indices for this area are generally verylow, and literacy rates are low (Table 4). Per capitaincomes in the SASEC subregion average about$300. Half the population lives on less than $1 aday. On a purchasing power parity basis, however,per capita income is five to six times higher thanthese numbers suggest. GDP per capita levels in2002, based on purchasing power parity estimates,were as follows: Bangladesh: $1,720; India: $2,570;and Nepal: $1,353 (no data for Bhutan).1

Fortunately, economic growth in the subregionis accelerating. For South Asia as a whole, GDP grewby 6.9% in 2003. It is expected to continue at thishigh rate or marginally higher during 2004 and 2005,assuming peaceful relations are maintained.2

Sharply rising demand for imported goods in thePeople’s Republic of China (PRC) combined withstrong consumer expenditure in South Asia arefueling economic expansion in the subregion.

India’s economy grew by 7.4% in 2003, and itsindustry and service sectors are growing by 10%annually. During the first quarter of 2004, India’seconomy expanded at an annualized rate of over10%, more rapidly than that of the PRC and amongthe fastest in the world. India’s economic growthrate is expected to continue to be very strong, inthe 7.5 to 8% range, to 2006.

In part because their large neighbors aregrowing so rapidly, but also because of domesticreforms and better management, Bangladesh,Bhutan, and Nepal are also experiencing strongereconomic growth. The Bangladesh economy grew

1 World Bank. 2003. World Development Indicator Database. Washington D.C.2 ADB. 2004. Asian Development Outlook. Manila.

by 5.7% in 2003 and is expected to experience steadygrowth (about 6%) up to 2006. This is despite theimpact on Bangladesh’s garment industry of thephasing out of the Multifiber Agreement.

Nepal’s economy has suffered a severe setbackdue to the security situation. Economic growth,however, has gradually recovered to 2.6% in 2003and is projected to reach 4% in 2004. Five percentgrowth is expected in 2005, contingent on greaterstability in the country. Bhutan’s economy isgrowing at a rapid annual rate of about 8%, spurredby electricity exports to India and the recovery of itstourism industry.

The structure of the economies and ofemployment in the four SASEC countries is animportant element in both international andsubregional tourism. In India and Bangladesh theagriculture and industry sectors each account forabout 25% of GDP, while the service sector accountsfor about 50%. In Nepal, however, the agricultureand service sectors each account for about 40% ofGDP, while the industry sector is relatively small, at20% of GDP. Similarly, Bhutan’s agriculture andservice sectors are of major importance, eachcontributing 45% of GPD. Bhutan’s industry sector,at only 10% of GDP, is very small.

More important than sector GDP shares aresector contributions to employment. For all fourcountries, agriculture is the dominant form ofemployment and the major source of householdincome. More than 70% of the population of thesubregion is dependent on agriculture. In the caseof Bhutan, 80% of the population depends onagricultural production. Consequently, less than20% of Bhutan’s population lives in urban areas, aproportion even less than that for the SASECsubregion as a whole.

Intra-SASEC trade and investment isextensive for Nepal and Bhutan but very limitedfor India and Bangladesh. For example, trade withIndia accounted for 60% of Nepal’s exports and43% of its imports in 2002. The figures are evenhigher, at 90%, for Bhutan. In contrast, imports andexports with Bangladesh, Bhutan, and Nepalaccounted for less than 2% of India’s total trade.Bangladesh exports very little to India, and importsfrom India account for only 13% of total trade.Intra-SASEC investment is low overall, but as inthe case of trade, India is an important source of

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Table 1: Total Area and Population of SASEC Subregion, 2002

Area PopulationCountry State (km2) (million)

Bangladesh 147,570 131.2

Bhutan 46,658 0.7

Indiaa 3,287,262 1055.0

Arunchal Pradesh 83,574 1.1

Assam 78,523 26.6

Bihar 94,163 82.9

Jharkhand 79,714 26.9

Manipur 307,477 2.4

Meghalaya 22,429 2.3

Mizoram 21,087 0.9

Nagaland 16,488 2.0

Orissa 155,707 36.7

Sikkim 7,214 0.5

Tripura 10,491 3.2

Uttar Pradesh 294,411 166.1

West Bengal 87,853 80.2

Nepal 147,181 23.7

Total SASEC 3,628,671 1,210.6Total Subregion 1,600,540 587.4

SASEC = South Asia Subregional Cooperation, km2 = square kilometers.a Population of states based on Census 2001.

Source: Asian Development Bank. 2003. Key Indicators. Manila.

Table 2: Gross Domestic Product at Current Prices in SASEC Countries($ million)

Country 1990 2000 2001 2002

Bangladesh 37.2 45.5 45.4 47.2

Bhutan 0.3 0.5 0.5 0.6

India 306.0 450.1 476.5 516.8

Nepal 3.6 5.1 5.4 5.4

TTTTTotalotalotalotalotal 347.1347.1347.1347.1347.1 501.2501.2501.2501.2501.2 527.9527.9527.9527.9527.9 570.0570.0570.0570.0570.0

SASEC = South Asia Subregional Cooperation.


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Table 3: Per Capita Gross Domestic Product at Current Prices in SASEC Countries($ million)

Country 1990 2000 2001 2002

Bangladesh 266.7 350.4 351.5 359.7

Bhutan 185.0 689.2 739.2 828.6

India 366.4 443.5 461.2 480.0

Nepal 194.2 223.0 231.1 226.8

AAAAAverageverageverageverageverage 253.1 253.1 253.1 253.1 253.1 426.5426.5426.5426.5426.5 445.8445.8445.8445.8445.8 473.8473.8473.8473.8473.8

SASEC = South Asia Subregional Economic Cooperation.


Table 4: Selected Indicators for SASEC Countries, 2002

Indicator Bangladesh Bhutan India Nepal

Social

Literacy Rate (%) 64 42 65 58

Life Expectancy (yrs) 58 66 a 65 59

Principle Language Bengali Dzonghka Hindib Nepali

Main Religions (%) Muslim 87 Buddhist Hindu 82 Hindu 81

Hindu 12 Muslim 12 Buddhist 11

Buddhist 1 Muslim 4

Economic

Currency Taka Ngultrum Rupees Rupees

Exchange rate, January 2004 $=59.15 $=45.7 $=45.7 $=74.1

GDP Growth Rate, real, 2003 (%) 5.7 7.7 7.4 2.6

SASEC = South Asia Subregional Economic Cooperation, GDP = gross domestic product.a Planning Commission. 1999. Bhutan 2020–A Vision for Peace, Prosperity and Happiness. Thimpu: Government of Bhutanb Plus 17 other main languages.

Source: Asian Development Bank. 2003. Key Indicators. Manila. (Except where noted)

investment in Nepal. Until recently, Bhutan’spolicy on foreign investment has been restrictive.These trade and investment relationshipsinfluence business travel and tourism moregenerally.

Tourism is part of the service sector. Asdiscussed more fully in subsequent sections ofthis report, SASEC’s share of world tourism is low

(less than 0.5%) and tourism contributes less than1% to the aggregate GDP of the subregion.According to ESCAP’s 2004 Economic Survey,tourism accounts for 2% of Bhutan’s GDP and for4% of Nepal’s GDP. Tourism accounts for anestimated 3% of employment in India. Figures forBangladesh are not available, but tourism’scontribution to GDP is very small.

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International visits to SASEC countriesnumbered 3.3 million in 2003 and foreign exchangeearnings from tourism were only $3.1 billion in 2002.For the SASEC subregion, international visitstotaled about 1.5 million. These numbers areexamined in more detail in Section III, where it isshown that they understate considerably theimportance of tourism. They exclude both domestictourism and the growing importance of intra-regional tourism via land routes (currently cross-border land travel by some SASEC nationals is notrecorded in tourist arrival data).

Looking ahead to the year 2014, it can beanticipated that the subregion will continue to betransformed by sweeping economic, social, andgeopolitical changes. SAARC is expected to matureinto an effective regional grouping, and the SouthAsian Free Trade Area and South Asian EconomicUnion are evolving realities. With strengtheninglinks to Association of South East Asian Nations(ASEAN) and East Asia, the prospect of an AsiaUnion is within the realm of possibility. SASEC willcontinue to be an effective subgroup, meeting theinterests of the four member countries, just as theGreater Mekong Subregion (GMS) Program services

the interests of the six Mekong countries within thecontext of ASEAN and ASEAN plus three countries.

In this highly positive context, GDP per capitawill likely more than double by 2014. Agriculture willcontinue to shrink in importance, but will remainthe dominant source of employment. Rapid growthof the manufacturing and service sectors combinedwith the higher incomes available from jobs in thesesectors could result in more rural areas beingtransformed into urban areas, with growingdisparities between the two areas. With respect totrade, PRC, East Asia, Southeast Asia, and SouthAsia could well become the largest trade bloc inthe world. These and other changes will encourageacceleration in the process of economic integration.These same changes will also require greaterinvolvement of civil society in shaping andprotecting its destiny.

The subregion is a rich diversity of peoples andcultures. Nepal well illustrates the diversity.

The National Census 2001 reports 103 castes/ethnicgroups—mostly Indo-Aryan and Mongols—and 93different languages—mostly Indo-Aryan and Tibeto-Burman, with Nepali being the official language, mothertongue of over 48 percent of the population. Fifty sevenpercent of the population are included in caste groups, 35percent in ethnic groups and eight percent others,including Muslim and Christians. About 80 percent ofthe population follows the Hindu religion with the nextlargest groups being Buddhist (11 percent), and Muslim(4%). About 67 percent of the population originated fromhill areas, 32 percent from the Terai and 0.7 percent fromthe Mountains.3

India and Bangladesh have an even richerdiversity. Even in the case of Bhutan, social andcultural diversity is a hallmark.

Cultural differences within the nation are considerable,with each ethnic group making its own distinctivecontribution to our living past. There are differences infolklore, myths, legends, dance, poetry, and crafts thattogether add richness to the nation’s cultural tapestry.4

3 Nepal Resident Mission. 2004. People and Livelihood Dimensions in PovertyReduction Strategy in Nepal. Information Paper No.4. Manila: ADB.

4 Planning Commission. 1999. Bhutan 2020—A Vision for Peace, Prosperity andHappiness. Thimphu: Government of Bhutan.

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Frequent changes in policies, governmentintervention, complex regulatory provisions andlicensing procedures, uncertainties concerning landtitle, corruption, security concerns, and otherimpediments bear most heavily on small andmedium-sized businesses, which are the backboneof the tourism sector. Recent progress isencouraging, but a push is needed to reap the fullbenefits of more market-oriented, open economies.

Essential to growth and prosperity is peaceand political stability in South Asia. The 2004Islamabad Declaration and improving relationsthroughout South Asia provide a window ofopportunity for advancing subregionalcooperation. In this context, WTO projects thattourist arrivals in South Asia will grow by 6.2%annually up to 2020, compared with 4.1% growthworldwide (Table 5). The World Travel and TourismCouncil (WTTC) projects that within the next 10years the economic value of personal travel andtourism will swell to the equivalent of 5% ofSASEC’s combined GDP.

Table 5: World Tourism Organization Forecast of Inbound InternationalTourist Arrivals, World by Region

(million except where noted)

Base Forecasts Average Annual Market ShareYear Growth Rate (%) (%)1995 2010 2020 1995-2020 1995 2020

World 565.4 1,006.4 1,561.1 4.1 100.0 100.0

Africa 20.2 47.0 77.3 5.5 3.6 5.0

Americas 108.9 190.4 282.3 3.9 19.3 18.1

East Asia & Pacific 81.4 195.2 397.2 6.5 14.4 25.4

Europe 338.4 527.3 717.0 3.0 59.8 45.9

Middle East 12.4 35.9 68.5 7.1 2.2 4.4

South Asia 4.2 10.6 18.8 6.2 0.7 1.2

Intra-regional 464.1 790.9 1,183.3 3.8 82.1 75.8

Long-haulLong-haulLong-haulLong-haulLong-haul 101.3101.3101.3101.3101.3 215.5215.5215.5215.5215.5 377.9377.9377.9377.9377.9 5.45.45.45.45.4 17.917.917.917.917.9 24.224.224.224.224.2

Source: World Tourism Organization. 2000. Tourism 2020 Vision. Madrid.

Population growth will be a continuingchallenge. Over the period to 2014, the populationof the four SASEC countries could increase to 1.4billion, or 200 million more than the current level.The Eastern Himalaya–Bay of Bengal area couldaccount for more than half of this increase. Familyplanning and education will be vital in reducingpopulation growth, and in achieving the millenniumpoverty goals. Even Bhutan’s population growthrate is of concern (footnote 4). Population controlwill also be essential for conserving theenvironment and creating better living conditionsfor all households. Urban and rural town planningwill need to be strengthened to accommodategrowing urbanization and to help attract moreindustry, including tourism.

In summary, the prospects for the subregionare highly favorable, but at the same time manychallenges exist. Foreign investors are taking noteof the favorable prospects and of the improvingenvironment for investment. Still, the situationfacing the business sector is far from optimal.

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C. World Tourism

1.1.1.1.1. Global TGlobal TGlobal TGlobal TGlobal Tourism Pourism Pourism Pourism Pourism Patternsatternsatternsatternsatterns

Tourism remains the largest industry in theworld. However, global patterns of tourism haverecently been greatly disrupted by the impact of thetriple shocks of September 11, the SARS outbreak inAsia, and the war in Iraq. Overall, WTO reports that2003 was the worst year on record for global tourism,as measured in terms of the decline in the number ofpeople arriving as holidaymakers at internationaldestinations. World international arrivals dropped1.2% to 694 million, or nine million less foreignvisitors than in 2002. The disruptions have bred anew kind of traveler, averse to long flights and tojourneys planned in advance. They favor cheapervacations arranged at the last minute (often over theInternet), and not too far from home. While securityand safety remain an essential precondition fortourism to flourish, the economic situation in sourcemarkets is also a powerful influence in determiningglobal patterns. The habit of holiday travel is deeplyrooted, and markets are remarkably resilient.

Tourists are getting more and more experienced, althoughthe amount of information on war threats, images of thesites after bomb attacks, and doubtful official suggestionshas never before been so enormous. The biggest problem inthe current situation of world tourism is uncertainty(WTO).

Table 6 shows subregional trends ininternational tourist arrivals since 1990, with aglobal average annual growth rate during the 1995to 2003 period of 3.3%. Although representing only1% of the world market, South Asia outperformedall other regions of the world in 2003 with 16.5%growth over 2002. In contrast, 2001 saw South Asiaarrivals drop 4.5% from those in 2000. Arrivals in2002 increased only 0.9% over 2001. In terms ofaverage annual growth, South Asia achieved a rateof 7.7% during the 1995 to 2003 period, more thandouble the global average of 3.3% andoutperforming all other regions except the MiddleEast.

By way of comparison, GMS data show thatregion recorded 16.5 million arrivals in 2002, a 72%increase over 1995 arrivals (9.6 million), with anaverage annual growth rate of 9.9%. The increase inarrivals in Cambodia has averaged 21% annually

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Table 6: International Tourist Arrivals by Region, 1990 to 2003

AverageDestination International Tourist Arrivals Market Share Change Annual Growth

( million ) (%) (%) (%) a

2001- 2002- 1995-1990 1995 2000 2001 2002 2003b 1995 2003b 2002 2003b 2003b

World 455.9 550.4 687.3 692.6 702.6 694.0 100.0 100.0 2.7 (1.2) 3.3

Europe 280.6 322.3 392.7 390.8 399.8 401.5 58.6 57.8 2.3 0.4 3.1

Americas 93.0 108.8 128.0 120.2 114.9 112.4 19.8 16.2 (4.4) (2.1) 0.4

Africa 15.0 20.0 27.4 28.3 29.1 30.5 3.6 4.1 2.8 4.9 6.6

Middle East 9.7 13.6 24.0 23.6 27.6 30.4 2.4 3.3 16.7 10.3 15.4

Asia/Pacific 57.7 85.6 115.3 121.1 131.3 119.1 15.6 17.2 8.4 (9.3) 4.9

South Asiac 3.2 4.2 6.1 5.8 5.9 6.8 0.8 1.0 0.9 16.5 7.7

a Tourism Development Plan Study Estimate.b Provisional data.c Afghanstan, Bangladesh, Bhutan, India, Iran, Maldives, Nepal, Pakistan, and Sri Lanka.

Source: World Tourism Organization. 2004. WTO Tourism Barometer. Madrid.

since 1995. Even a small country like the LaoPeople’s Democratic Republic (PDR) hasexperienced a dramatic increase in tourism, from14,000 arrivals in 1990 to 736,000 in 2002. SoutheastAsia, according to WTO data, suffered the worst ofany region in the world in 2003 due to the SARSoutbreak, registering a 15.4% drop overall in arrivals.

Volume alone, of course, does not paint thefull picture. According to the International LaborOrganization, 6.6 million, or one in 12 tourism jobsworldwide, have been lost in recent years.Economic recession and the effects of the poorperformance of the tourism industry are still beingfelt. Many major destinations have suffered double-digit drops. The United States (US), for example,has seen international tourist arrivals fall 12% since2000. Employment in the tourism industry therewas down 5.8% with around 1.1 million jobs lost.All countries that usually attract North Americanvisitors experienced steep declines in internationaltourism after September 11. Those that haverecovered have succeeded in finding alternatemarkets. Long-haul travel has been one of the majorcasualties, resulting in increased appreciation ofshort-haul, regional and domestic markets.

2.2.2.2.2. TTTTTourism Growth Projectionsourism Growth Projectionsourism Growth Projectionsourism Growth Projectionsourism Growth Projections

WTO predicts that the number internationaltourist arrivals will reach 1.6 billion by the year 2020(Table 5), spending a total of $2 trillion per year, or$5 billion a day. This represents more than doublethe 694 million international tourist arrivalsrecorded in 2003, with projected expendituresnearly four times more than the $474 billion spentworldwide in 2002. Tourism in Asia is projected tomore than double by 2010, reflecting the growingstrength of the PRC and India, the expectedresurgence of Japan’s economy, and the continuingsharp recovery of economies hurt during the Asianfinancial crisis.

Forecasts of inbound arrivals for individualSASEC countries show that by 2020 the leadingcountries will be India (8.9 million arrivals) andNepal (just under 2 million). Bangladesh is forecastto grow to 415,000 arrivals by 2020. At 75%, SouthAsia has the highest ratio of long-haul arrivals tototal arrivals of any region in the world. This ispossibly due to discrepancies in data collection.Long-haul tourism in South Asia is predicted togrow to 85% of the total by 2020. Of the forecasted18.8 million visitors to South Asia in 2020, WTO

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predicts 2.9 million will be intra-regional visitorsand 15.9 will be long-haul visitors.

WTO forecasts that South Asia will generatealmost 17 million outbound tourists by 2020. Theannual growth rate is expected to average 5.6% overthe period 1995 to 2020, stronger than the globalaverage of 4.1%. India is predicted to experience themost rapid growth in outbound tourists amongSouth Asian countries between 1995 and 2020, withnumbers increasing 5.7% each year to reach 6.7million outbound tourists by 2020.

3.3.3.3.3. International TInternational TInternational TInternational TInternational Tourism Tourism Tourism Tourism Tourism TrendsrendsrendsrendsrendsRelevant to SouthRelevant to SouthRelevant to SouthRelevant to SouthRelevant to South

a. Trend Towards Regional Grouping

South Asia is not alone in recognizing thebenefits of subregional grouping to promotetourism. Motivated by reduced marketing budgetsand tourism downturns, neighboring countries havebeen pooling their financial and human resourcesand establishing cost-effective regional jointmarketing and promotion programs. Successfulexamples include the Agency for CoordinatingMekong Tourism Activities (AMTA), the Regional

Tourism Organization for Southern Africa(RETOSA), the Caribbean Tourism Organization(CTO), and the South Pacific Tourism Organization(SPTO). To combat the effects of SARS, the NTOs ofHong Kong, Singapore, and Thailand exhibitedunder one “Together in Asia” banner at the WorldTravel Market in London.

The subregional pooling of resources has anumber of distinct advantages: limited budgets canbe “stretched,” market research can be shared,growth in destination awareness can be faster,media exposure can be greater, product positioningcan be earlier, and penetration in target markets canbe more rapid. Joint management of resources,cooperative security, and initiatives such as cross-border protected areas, are additional subregionaltourism initiatives that present good opportunitiesfor growth.

Government-led subregional tourisminitiatives in South Asia, such as those underSAARC, have achieved only limited success to date.However, the industry’s private sector has beenworking cooperatively throughout the subregion fordecades, investing in tourism businesses andpromoting intra-regional packages. South Asiantravel magazines—both trade and consumer,

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conferences (e.g. the Travel Agents Association ofIndia [TAAI] and the Indian Institute of Tourism andTravel Management [IITTM]), and exhibitions (e.g.SATTE) have been successfully bringing togetherthe travel industry for many years.

b. Domestic Tourism Trends

Fostering domestic tourism is widelyrecognized as a means of keeping tourism revenueat home, upgrading living standards, and achievingnational social objectives. Tourism can contributerecreational, sport, leisure, and educationalfacilities to host communities, although aperception that tourism is only for foreigners oftenmust be overcome. With the recent decline in long-haul travel, many destinations have come to relyon the domestic market, especially for nicheproducts such as ecotourism and soft adventure.

A study this year of the economic multipliersof tourism in India, conducted by JPS Associates ofIndia, found that the multiplier and povertyalleviation effects of domestic tourists are moresignificant than of foreign tourists, despite thehigher spending of the latter. This was due to thegreater number of domestic tourists and their

length of stay, which more than made up for theirmuch lower daily spending.

Targeting domestic and intra-regional SouthAsian travelers will help create an awareness of theimportance of tourism, and contribute throughoutthe year to the viability of businesses. Ecotourismand Buddhist circuits are attractive products fordomestic markets. There is considerable politicalcommitment in the subregion to the promotion ofdomestic tourism. Suitable products need to beidentified and appropriate commercial channels ofdistribution organized, particularly within the radiusof large population centers.

c. Quality and Price Sensitivity

Recent downturns in tourism have putpressure on prices, and consumers increasinglydemand value for money when making holidaychoices. Knowledgeable observers feel that the ageof conspicuous consumption has passed andtravelers are now more sensitized to the gapbetween rich and poor. This is particularly relevantto destinations such as South Asia. While a demandfor ultra-deluxe products for special occasions willalways exist, WTO maintains that value-for-money

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has become critical in today’s travel decisions.Competitiveness between destinations is such thattourists will choose destinations where they get thebest quality experience for the best price. This trendemphasizes South Asia’s need to position itself inthe international marketplace as being a quality,value-added destination, delivering value for moneyacross the spectrum of tourism services.

d. Independent Travelers

Free and independent travelers (FITs—i.e. notorganized or pre-booked) are becoming moremature and are no longer limited to young budgetvisitors. FITs prefer a more flexible style of traveland demand an authentic experience. They getinformation from and make bookings on theInternet. The WTO reported in late 2003: “Do-it-yourself trips are becoming more common,particularly for mature and experienced travelers,vigorously stimulated by the possibilities offered bylow-cost airlines and the Internet.”

Independent travelers arrange their own flightsand accommodations, then purchase excursionsafter arrival on a walk-in basis. Although some maynot wish to spend substantial amounts on

accommodation, research shows that FITs pay wellfor unique ecotourism experiences and adventureactivities. Long stays often compensate for low dailybudgets.

There are opportunities to attract moreindependent travelers to South Asia if perceptionsof the difficulties of travel can be corrected. Betterinformation must be provided and the currentproduct range must be expanded, highlightingsecurity initiatives and facilitating internal travel.These travelers favor ecotourism, including trekkingand adventure activities as well as Buddhist andcultural products. The wide use of English in thesubregion is a strong competitive advantage.

e. Ecotourism Trends

The concept of ecotourism, a combination ofecology and tourism, emerged in the 1980s as aresponse to the unsustainable aspects ofinternational tourism. By 1990 the InternationalEcotourism Society had been formed, definingecotourism as “responsible travel to natural areasthat conserves the environment and sustains thewell-being of local people.” The International Yearof Ecotourism was organized by the United Nations

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Environment Programme (UNEP) andWTO in 2002. A number of events,deliberations and seminars culminated inthe Quebec Declaration, the benchmarkfor ecotourism that was forged at theWorld Ecotourism Summit in May 2002.Many destinations, including Bhutan andNepal, formulated and publishednational ecotourism strategies to ensurethat their styles of tourism broughtbenefits to local people and preservedthe environment.

Although the term “ecotourism” isnow widely used in conservation andtourism sectors, definitions varywidely. For the purposes of thisPlan, a broad and inclusivedefinition has been used,borrowed from Bhutan’sNational Ecotourism Strategy:“Styles of tourism thatpositively enhance theconservation of theenvironment and/or culturaland religious heritage, andrespond to the needs of localcommunities.”

In 1995, the size of theecotourism market wasestimated at between 7% and15% of the total market, orabout $50 billion globally. TheWTO now estimates that ecotourism is increasingby 20% per annum, or some six times the growthrate of standard tourism, prompting NTOs andtourism operators to consider it seriously in termsof promotion and planning. Based on theseprojections, the ecotourism market may haverepresented up to 20% of total international tourismspending in 2003. Although the global market isdifficult to quantify accurately, trends confirmstrong consumer enthusiasm and awareness forsustainable styles of tourism.

SASEC countries, particularly Bhutan andNepal, are firmly established as pioneers ofecotourism. South Asia is uniquely placed to buildon this comparative advantage to spread tourismbenefits to remote areas where there is minimalinfrastructure. The relatively unknown states of

India’s North East are areas with particular potentialin this regard.

f. Trends in Pilgrimage Travel

South Asia is uniquely positioned as the“Buddhist Heartland,” containing many of the world’smajor Buddhist attractions. There are approximately360 million Buddhists worldwide, about 6% of theglobal population. The enormous opportunity forBuddhist pilgrimage travel has been recognized in anumber of international seminars, including those ofUNESCO, UNESCAP, and the International Conclaveon Buddhism and Spiritual Tourism hosted by Indiain February 2004. Nepal is actively targetingpilgrimage visitors to the major Buddhist attractionsof Lumbini and Kathmandu Valley.

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Buddhist tourists range across aspectrum, from pilgrims visiting thesubregion’s religious sites to long-stayvisitors pursuing academic and religiousstudies. Western visitors undertakeBuddhism studies and attend teachingsarranged by monasteries and institutions,such as those in the Kathmandu Valleyand the Namgyal Institute of Tibetology inSikkim. Buddhist pilgrims are divided intofollowers of Theravada (Hinayana, or smallvehicle), largely from Thailand, Myanmar,and Sri Lanka, Mahayana (great vehicle),largely from Nepal, Bhutan, and Sikkim,and the Vajrayana (diamond vehicle) sectsthat include Japan (Zen), TAR, PRC andnorthern Himalaya (Lama), and PRC (Chan).Monasteries and sites sacred to their respectivetraditions attract each group.

Traditional healing, Himalayan spas, yogapractices, and meditation appeal to broader, generalinterest visitors with an interest in “spiritual wellbeing.” These visitors are currently targeted in the“Incredible India” campaign. The subregion’sspectacular Buddhist monuments attract visitorsinterested in sightseeing, particularly the “LivingBuddhism” found in Nepal, Bhutan, and India—suchas Arunchal Pradesh, Sikkim, Ladakh, andDharamshala. The “Footsteps of the Lord Buddha”

circuit associated with the Buddha’s life in what is nowIndia and Nepal appeals to Buddhists from all overthe world, especially those from Japan, Thailand, SriLanka, Taipei, China, Republic of Korea, and the PRC.When facilities are improved, general interest visitorswill also be attracted to this circuit.

The history, iconography and art associatedwith Buddhism can be found in numerousimportant archaeological sites in Bangladesh, India,and Nepal. Some of these sites are listed below.

BANGLADESH: Paharpur, Mahastangar,Comila, Mainamati, and Ramu

INDIA: Madhya Pradesh(Sanchi), Maharashtra(Ajanta and Ellora),Sikkim (Rumtek, Tashidingetc.), Ladakh; Orissa(Khandagiri, Udaygiri,Ratnagiri and Lalitgiri),Arunchal Pradesh(Tawang); Tripura(Pilak. etc.)

NEPAL: Tilaurakot,Niglihawa, Gotihawa,Sagarhawa, Arorakot,Kudan, and Ramagrama.

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ANALYSIS OF SASEC TOURISM

ANALYSIS OFSASEC TOURISM

26


A. Tourism Patterns

1.1.1.1.1. Subregional TSubregional TSubregional TSubregional TSubregional Tourism Pourism Pourism Pourism Pourism Patternsatternsatternsatternsatterns

The SASEC subregion and the four SASECcountries experienced a surge in tourism arrivals in2003, with increases of 19.2% and 15.7%,respectively, over 2002. As may be seen in Table 7,however, these encouraging increases representedonly a partial recovery from the sharp drop inarrivals in 2002. Over the five-year period from 1999to 2003, arrivals in the SASEC subregion declinedan average of 3.8% each year. Arrivals in the fourSASEC countries increased at an average annualrate of 1.3% during the same period.

During the 1995 to 2003 period, internationaltourist arrivals in all SASEC countries grew at anannualized average rate of 3.2%. This was close tothe global average of 3.3% during the same period,but well below South Asia’s average of 7.7% (Table6). Bangladesh achieved strong average annualgrowth in arrivals from 1995, at 7.1%, but from a lowbase. Arrivals in Bhutan and India during the sameperiod increased gradually, with annual growthaveraging 3.9% and 3.7%, respectively, while Nepalarrivals decreased 1.5% on average over the period.

Fostering growth in tourism should bebeneficial to all SASEC countries. Historically,however, governments have been slow in givingpriority to the sector. Despite sharp improvementsin 2003, South Asia’s share of world tourism hasbeen largely stagnant, amounting to 1% in 2003, upfrom 0.8% in 1995. The 1.5 million visitors to theSASEC subregion in 2003 represented only 0.2% ofworld tourism that year, and the four countries’ totalof 3.3 million arrivals represented only 0.5% of theworld total.

As shown in Table 8, tourism earnings frominternational visitors totaled $3.1 billion in 2002,equivalent to about 0.5% of aggregate GDP for theSASEC countries. The average earnings per touristvisit in SASEC countries are shown in Table 9. On aweighted average basis, earnings per tourist visit in2002 for the four countries have been calculated at$1,326.

These data, however, exclude domestic visitorsand understate the importance of intra-regionaltourism. To illustrate the significance of thesecomponents, India’s Ministry of Tourism (MOT) saysthe country recorded 300 million domestic touristarrivals in 2003, but this already large number risesto an estimated 550 million when visiting friendsand relatives (VFR) and social visits are included.

Many intra-regional visitors, particularly landarrivals, are not recorded as tourist visitors althoughthey conform with WTO criteria as such visitors. Forexample, an estimated 15,000 Indians visit Bhutaneach year but are not counted as tourists. A largenumber of Indians visit Nepal by land, but only airarrivals are recorded (Table 10). Similarly, there is asignificant amount of informal travel betweenBangladesh and India that is not recorded. These“lost” arrivals are difficult to estimate, but industryperceptions place them as high as 5 to 10 millionadditional visitors annually. Even counting only therecorded arrivals from SASEC neighbors, intra-regional travel comprises a significant percentageof inbound visitors—on average almost 30% toSASEC areas, excluding Bhutan and not countingIndian arrivals.

Meaningful estimates of the purpose ofinternational travelers’ visits are also constrainedby lack of data and differences in recordingmethods. Official NTO figures show that 65% ofvisits to Bangladesh were for “other” purposes, withonly 19% for holiday and 16% for business. Visits toBhutan were all (100%) for holiday, while 97% ofvisits to India were for holiday and 3% for business.Data for Nepal are probably the most accurate; theyare recorded the purposes of visits as 62% holiday,14% business, and 24% other in 2002. Overall,arrivals in the four SASEC countries are about 70%for holiday, 8% for business, and 22% for otherpurposes. These percentages should be viewed withcaution, however, as visitor inputs are influencedby perceived visa difficulties. Further analysis, wherestatistics are available, is included in the countryprofiles below.

The fact remains that SASEC countries havelow levels of international tourism, at least relativeto their potential. There are extensive opportunitiesfor growth, building on current and new markets.

27


As shown in Table 11, the main tourism sourcemarkets for SASEC countries are predominantlySAARC countries, followed by the UK and the US.Europe and North America are both traditionalecotourism markets and are likely to remainsignificant for SASEC, although it will be importantto seek out specialist and niche market segments.In terms of new markets, there is potential to attractmore visitors from Asia, particularly the countrieswith Buddhist connections such as Japan, Thailand,Sri Lanka, Taipei, China, the Republic of Korea, andthe PRC. In 2003 there were more than 20 milliontourists outbound from PRC alone, and this figureis expected to reach 100 million by 2020.

At the third TWG meeting in New Delhi in July2003 it was agreed that SASEC priorities includejoint marketing by the four NTOs to achieve clearproduct branding under the themes of ecotourismand Buddhist circuits. SASEC was not found to bean appropriate brand. It was agreed by TWG thattarget markets were

(i) the strong intra-regional and domesticmarket segments within SASEC,

(ii) short-haul markets with easier access andbetter connectivity, and

(iii) long-haul markets for the longer term.

In terms of subregional air services, there aredirect air links between seven cities in SASECcountries, currently comprising 144 flights perweek and providing 21,351 round-trip seats. Thetrend in the subregion toward liberalizing airagreements and enabling private regional airlinesoffers opportunities for increased tourism.

Kathmandu and New Delhi act as air hubs inthe region, with Kathmandu having the more directSASEC regional connections. There are issuesconcerning national, regional, and domestic airlinesin SASEC countries, however, that undermine theirreputation for reliability. The safety record in Nepalis poor. Druk Air of Bhutan and most private airlinesare not accessible by international reservationssystems. The national carriers of Nepal andBangladesh are heavily subsidized. Interliningfacilities and ticket exchange agreements betweennational and domestic airlines in the region areweak or non-existent, leaving travelers dependenton only local bookings.

2.2.2.2.2. TTTTTourism Pourism Pourism Pourism Pourism Patterns in Bangladeshatterns in Bangladeshatterns in Bangladeshatterns in Bangladeshatterns in Bangladesh

The Government of Bangladesh firstrecognized tourism as important industry with theframing of a National Tourism Policy in 1992. In

1999, tourism was declared a Thrust Sector, and taxexemptions and other benefits are given to theindustry. While tourism has remained at low levels,revenue from tourism has grown an average of 26%per annum since 1995, reaching $57 million in 2002(Table 8). Growth in tourism arrivals averaged ahealthy 10.4% increase each year from 1999 to 2003,but started from a low base (Table 7). Arrivals for2003 totaled 244,509, of which about 37% came fromSASEC countries (Table 12). Bangladesh is not wellestablished in international tourist markets,reflecting limited promotional activities to date.

Only 18.6% (38,448 visitors) of foreign touristsarrived for leisure and recreational purposes in2001. Others came mainly for business, official orVFR reasons. Bangladesh attracts very fewbackpackers and budget tourists due tocomplicated visa formalities and perceiveddifficulties of travel. The most dynamic element ofthe sector in Bangladesh is domestic and Indiantourism. Rapid growth in these market segmentsis helping to build infrastructure for possiblefuture international tourism.

In Dhaka there are only two 5-star, one 4-star,and four 3-star hotels, with a combined total of1,024 rooms. Forty-six international-standardguesthouses in the city have about 1,000 rooms.Two new 5-star hotels will be in operation in Dhakaby the end of 2004 and two more are underconstruction, anticipating an increase in thenumber of business and official visitors.

Hotel rates in Dhaka are high compared toneighboring countries, reflecting the high level oftaxation imposed on hotels in Bangladesh. In

28


January 2004 the 42.3% tax on hotel bills wasreduced to 29.4%, but this rate is still high comparedto rates in hotels in India (10%), Malaysia (5.5%),and Thailand (11%).

Recent trends indicate visitor interest incultural World Heritage Sites, such as the ruins ofthe famous Paharpur Buddhist monastery and the15th century Shaat Gambus mosque Bagerhat.

Visitors to Paharpur numbered 86,704 in 2003, upsignificantly from 56,364 in 2002, of whom anestimated 700 were foreign visitors, reportedlymainly from Japan. Similar numbers visit theBuddhist site of Mahastangar.

More than 300,000 tourists are estimated tohave visited the beach at Cox’s Bazar in 2003. Mostof these are domestic and Indian tourists, with less

Table 7: Foreign Tourist Arrivals in the SASEC Subregion, 1995 to 2003(Million except where otherwise noted)

1995 1996 1997 1998 1999

Bangladesh 156,231 165,887 182,420 171,961 172,781

Bhutan 4,765 5,138 5,363 6,203 7,158

India, Total 2,123,683 2,287,860 2,374,094 2,358,629 2,481,928

Nepal 363,395 393,613 421,857 463,684 491,504

TTTTTotal SASEC Countriesotal SASEC Countriesotal SASEC Countriesotal SASEC Countriesotal SASEC Countries 2,648,0742,648,0742,648,0742,648,0742,648,074 2,852,4982,852,4982,852,4982,852,4982,852,498 2,983,7342,983,7342,983,7342,983,7342,983,734 3,000,4773,000,4773,000,4773,000,4773,000,477 3,153,3713,153,3713,153,3713,153,3713,153,371

West Bengal – – – – 198,711

Bihar – – – – 76,389

Uttar Pradesh – – – – 822,150

Orissa – – – – 25,759

Jharkhand – – – – –

Assam – – – – 604

Meghalaya – – – – 1,971

Manipur – – – – 277

Tripura – – – – 335

Mizoram – – – – 216

Nagaland – – – – 119

Arunchal Pradesh – – – – 48

Sikkim – – – – 8,554

Subtotal SASEC India StatesSubtotal SASEC India StatesSubtotal SASEC India StatesSubtotal SASEC India StatesSubtotal SASEC India States ––––– ––––– ––––– ––––– 1,135,1331,135,1331,135,1331,135,1331,135,133TTTTTotal SASEC Subrotal SASEC Subrotal SASEC Subrotal SASEC Subrotal SASEC Subregionegionegionegionegion ––––– ––––– ––––– ––––– 1,806,5761,806,5761,806,5761,806,5761,806,576

SASEC = South Asia Subregional Economic Cooperation, – = no data available or not calculated.Note: The numbers of foreign visitors to Indian states include visitors who may visit more than one state, hence the numberof foreign visitors to the states will exceed the recorded total.a Provisional for Nepal, Nagaland and Sikkim. Data unavailable for Arunchal Pradesh.

Source: National tourism organization statistics and Tourism Development Plan study estimates.

29


than 10% estimated to be international visitors.Tourism is highly seasonal, with about one quarterof all visitors arriving during the cool months ofDecember and January.

Bangladesh has begun to experience growthin ecotourism. The Sundarbans mangrove forestincreasingly attracts both domestic andinternational visitors; they numbered 25,000 in

2003, of which about 5% or 1,250 persons wereforeigners. Ethnic-based tourism aroundChittagong was popular in the past, but instabilitiesin the tribal areas have caused a sharp decline. Thesigning of a peace treaty in 2001 has led toimprovement in the peace and order situation,reviving hopes that ethnic-based tourism willrecover.

Average AverageAnnual Annual

Change Growth Growth2000 2001 2002 2003a 2002/03 1999-03 1995-03

(%) (%) (%)

199,211 207,199 207,246 244,509 18.0 10.4 7.8

7,559 6,393 5,594 6,267 12.0 (3.1) 3.9

2,649,378 2,537,282 2,384,398 2,753,029 15.5 2.7 3.7

463,646 361,237 275,468 320,000 16.2 (8.7) (1.5)

3,319,7943,319,7943,319,7943,319,7943,319,794 3,112,1113,112,1113,112,1113,112,1113,112,111 2,872,7062,872,7062,872,7062,872,7062,872,706 3,323,8053,323,8053,323,8053,323,8053,323,805 15.715.715.715.715.7 1.41.41.41.41.4 3.23.23.23.23.2

197,061 284,092 529,366 705,457 33.3 63.8 –

73,321 85,673 112,873 60,820 (46.1) (5.1) –

848,000 795,000 109,464 140,972 28.8 (20.7) –

23,723 22,854 23,279 25,020 7.5 (0.7) –

– 2,979 2,244 3,223 43.6 – –

5,954 6,171 6,409 6,402 (0.1) 240.0 –

2,327 2,390 3,146 6,304 100.4 55.0 –

429 183 221 257 16.3 (1.8) –

0 0 0 3,198 – 213.7 –

235 152 259 279 7.7 7.3 –

451 920 657 1,000 52.2 185.1 –

2,044 323 187 0 (100.0) (25.0) –

10,409 31,028 8,566 7,800 (8.9) (2.2) –

1,163,9541,163,9541,163,9541,163,9541,163,954 1,231,7651,231,7651,231,7651,231,7651,231,765 796,671796,671796,671796,671796,671 960,732960,732960,732960,732960,732 20.620.620.620.620.6 (3.8)(3.8)(3.8)(3.8)(3.8) –––––1,834,3701,834,3701,834,3701,834,3701,834,370 1,806,5941,806,5941,806,5941,806,5941,806,594 1,284,9791,284,9791,284,9791,284,9791,284,979 1,531,5081,531,5081,531,5081,531,5081,531,508 19.219.219.219.219.2 (3.8)(3.8)(3.8)(3.8)(3.8) –––––

30


Figure 1: Tourism Patterns in Bangladesh

31


3.3.3.3.3. TTTTTourism Pourism Pourism Pourism Pourism Patterns in Bhutanatterns in Bhutanatterns in Bhutanatterns in Bhutanatterns in Bhutan

Bhutan first opened to tourism in 1974, andthe industry was privatized in the early 1990s.Arrivals increased from a low base of only 287visitors in 1974 to a record 7,559 in 2000. In 2003Bhutan received 6,267 arrivals, representing 12%growth over 2002 and an average annual growth of3.9% from 1995 to 2003 (Table 7). Gross earningswere $8.33 million in 2003, contributing $2.88

million to Government revenue. Tourism accountsfor about 5% of national revenue.

Growth was largely due to the relaxation ofrestrictions on the number of operating licensesissued to private sector travel agencies. By 2003, 133tour operator licenses had been issued. Most agentsare small-scale, however, and several have yet tobecome operational. The industry is dominated by asmall number of large companies. Ten operatorshandled about 60% of all visitors in 2003.

Table 8: Earnings from Tourism in SASEC Countries, 1995 to 2002

AverageAnnualGrowth

Country 1995 1996 1997 1998 1999 2000 2001 2002 2002/95 ($ million) (%)

Bangladesh 20 34 42 51 50 59 49 57 26.4

Bhutan 5.88 6.52 6.55 7.98 8.88 10.49 9.19 7.98 5.1

India 2,583 2,832 2,889 2,948 3,009 3,168 3,042 2,923 1.9

Nepal 117 117 116 153 168 167 140 107 (1.2)

SASEC countriesSASEC countriesSASEC countriesSASEC countriesSASEC countries 2,7262,7262,7262,7262,726 2,9892,9892,9892,9892,989 3,0533,0533,0533,0533,053 3,1603,1603,1603,1603,160 3,2363,2363,2363,2363,236 3,4043,4043,4043,4043,404 3,2403,2403,2403,2403,240 3,0953,0953,0953,0953,095 1.91.91.91.91.9


Source: National tourism organizations.

Table 9: Average Earnings per Tourist Visit, 1995 to 2002

AverageAnnualgrowth

Country 1995 1996 1997 1998 1999 2000 2001 2002 2002/95 ($) (%)

Bangladesh 128 205 230 297 289 296 236 275 16.4

Bhutan 1,223 1,269 1,221 1,286 1,240 1,389 1,438 1,425 2.4

India 1,216 1,238 1,214 1,250 1,212 1,196 1,199 1,226 0.1

Nepal 474 430 402 476 479 454 472 512 1.1

Source: National tourism organization statistics and national banks.

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Table 10: Intra-Regional Air Travel in SASEC Countries, 2002(Number of arrivals except where noted)

From / To Bangladesh Bhutan India Nepal

Total Arrivals 207,199 5,594 2,384,398 275,468

Bangladesh – – 435,867 5,507

Bhutan 1,241 – 4,123 1,426

India 80,415 – – 66,777

Nepal 4,159 257 43,056 –

SASEC RegionSASEC RegionSASEC RegionSASEC RegionSASEC Region 85,81585,81585,81585,81585,815 ––––– 483,046483,046483,046483,046483,046 73,71073,71073,71073,71073,710SASEC % of TSASEC % of TSASEC % of TSASEC % of TSASEC % of Totalotalotalotalotal 40.340.340.340.340.3 ––––– 20.320.320.320.320.3 26.826.826.826.826.8

SASEC = South Asia Subregional Economic Cooperation, – = no data available or not calculated.

Source: National tourism organizations statistics.

Table 11: Arrivals in SASEC Countries from Major Market Countries, 2002(Number of arrivals, except where noted)

PercentCountry Bangladesh Bhutan India Nepal Total of Total

SAARC Countries 97,192 – 612,785 84,986 794,963 27United Kingdom 28,905 519 387,846 21,007 438,277 15United States 13,622 1,913 348,182 17,518 381,235 13Canada 3,603 – 93,598 3,747 100,948 3France 2,589 192 78,194 13,376 94,351 3Japan 7,325 893 59,709 23,223 91,150 3Germany 3,297 346 64,891 15,774 84,308 3Malaysia 3,706 – 63,784 2,777 70,267 2Australia 3,409 214 50,743 7,159 61,525 2Italy 2,112 177 37,136 8,057 47,482 2Republic of Korea 6,511 – 29,374 8,798 44,683 2Netherlands 4,159 197 31,669 8,306 44,331 2Israel – – 25,503 6,286 31,789 1PRC 6,681 – 15,422 8,715 30,818 1Thailand 3,997 46 19,647 4,694 28,384 1Switzerland 1,621 164 21,606 3,352 26,743 1Spain 2,524 68 19,567 5,267 27,426 1Belgium 795 22 13,945 2,847 17,609 1Austria 87 92 13,801 3,140 17,120 1Denmark 1,248 – 10,230 2,040 13,518 0Others 13,836 751 386,766 24,399 463,042 16

TTTTTotalotalotalotalotal 207,246207,246207,246207,246207,246 5,5945,5945,5945,5945,594 2,384,3982,384,3982,384,3982,384,3982,384,398 275,468275,468275,468275,468275,468 2,909,9692,909,9692,909,9692,909,9692,909,969 100100100100100

PRC = People’s Republic of China, SAARC = South Asia Association for Regional Cooperation, SASEC = South Asia Subregional EconomicCooperation, – = no data available.

Source: National tourism organizations statistics.

33


Table 12: Visitor Arrivals from SASEC Countries in Bangladesh, 1997 to 2003(Number of arrivals except where noted)

Country 1997 1998 1999 2000 2001 2002 2003

Total Arrivals inBangladesh 182,420 171961 172,781 199,211 207,199 207,246 244,509

From: Bhutan 959 441 730 1,010 1,263 1,241 1,228 India 61,606 57,937 62,935 74,268 78,090 80,415 84,704 Nepal 5,296 4,799 4,733 4,481 4,280 4,159 3,904

TTTTTotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arrivalsrivalsrivalsrivalsrivals 67,86167,86167,86167,86167,861 63,17763,17763,17763,17763,177 68,39868,39868,39868,39868,398 79,75979,75979,75979,75979,759 83,63383,63383,63383,63383,633 85,81585,81585,81585,81585,815 89,83689,83689,83689,83689,836SASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of Totalotalotalotalotal 37.237.237.237.237.2 36.736.736.736.736.7 39.639.639.639.639.6 40.040.040.040.040.0 40.440.440.440.440.4 41.441.441.441.441.4 36.736.736.736.736.7


Source: Bangladesh Parjatan Corporation.

Figure 2: Tourism Patterns in Bhutan

34


Table 13: Number of Visitor Arrivals in Bhutan by Nationality, 1996 to 2003

Change2002/03

Nationality 1996 1997 1998 1999 2000 2001 2002 2003 (%)

United States 963 910 1,471 2,122 2,754 2,149 1,913 1,806 (5.6)

Japan 1,211 1,173 1,032 1,102 875 1,038 892 952 6.7

Germany 722 533 520 574 662 414 346 496 43.4

United Kingdom 358 642 686 646 595 681 519 605 16.6

France 331 229 366 236 399 287 192 288 50.0

Netherlands 131 234 370 362 359 180 197 179 (9.1)

Canada 57 89 82 149 194 197 166 121 (27.1)

Australia 71 121 64 131 179 138 214 165 (22.9)

Taipei, China 32 83 135 179 175 44 40 90 125.0

Italy 242 186 218 276 156 192 177 331 87.0

Spain 49 33 109 118 141 73 68 77 13.2

Switzerland 161 186 170 296 137 170 164 177 7.9

Austria 156 156 270 197 131 128 92 152 65.2

Belgium 77 75 95 107 95 76 22 104 372.7

Thailand 181 140 19 71 92 36 46 66 43.5

Others 396 573 596 592 615 590 546 658 20.5

TOTTOTTOTTOTTOTALALALALAL 5,1385,1385,1385,1385,138 5,3635,3635,3635,3635,363 6,2036,2036,2036,2036,203 7,1587,1587,1587,1587,158 7,5597,5597,5597,5597,559 6,3936,3936,3936,3936,393 5,5995,5995,5995,5995,599 6,2676,2676,2676,2676,267 12.012.012.012.012.0

TREK 1,851 746 1,343 830 926 468 357 438 23.7CULTURE 3,287 4,617 4,860 6,328 6,633 5,925 5,242 5,829 11.2

Source: Government of Bhutan

Table 13 shows that Bhutan traditionally hasa high dependence on the North American market,which accounted for 40% of all visitors in 2000.That share declined to 31% of the total in 2003 asarrivals dropped following September 11. Europeis strengthening as a source market, and in 2003accounted for 38% of all arrivals. The number ofJapanese visitors, characterized by their short stay,has declined in recent years, accounting for 15%of arrivals in 2003.

Currently, there are 13 approved trekkingroutes, many of which are interconnected. In termsof the ratio of trekkers to cultural visitors, trekkershave been declining sharply in recent years, theirshare down to 7% in 2003 as compared to 36% in1996. Cultural tours mostly follow the Paro,Thimphu, Punakha/Wangdue Phodrang tourist

triangle, a pattern unchanged since the 1970s. Lessthan 35% of visitors ventured beyond this route in2003, reflecting short stays, a lack of marketing, andundeveloped tourism infrastructure.

Another reason for the apparent low numberof arrivals is that visitors from Bangladesh and Indiaare not recorded, making it difficult to assess theimportance of intra-regional tourism in Bhutan.Industry perceptions are that an estimated 15,000Indians visit Bhutan annually.

Tourist visits are concentrated in the highseason, which includes March, April, May,September, October, and November. More than 80%of tourists arrive during these six months, leavinghotels, transport facilities, and other tourisminfrastructure with very low capacity utilizationrates during the other six months.

35


The average length of stay is about 8 days, withthe longest stays (23 days) recorded by specialinterest groups, such as bird watchers and religiousstudy groups. Repeat visits are very low in number.There are 57 hotels in Bhutan with 1,013 rooms. Asurvey conducted in 2001 indicated that the hotelsector was employing over 1,000 staff, but about 180of these were non-nationals. In 2001 there were 224cultural guides and 87 trekking guides. About 50%of trekking guides are also registered as culturalguides, so there is a pool of about 263 culturalguides. Some are fully employed by tour operators;some are kept on monthly retainers and some workfreelance. Cultural guides are licensed after a basictwo-week entry-level training course. Overallprofessional standards are not considered high,especially in light of the advanced knowledge ofmany of the tourists. Nonetheless, guides aregenerally rated excellent for their cooperative,caring, and friendly attitudes.

4.4.4.4.4. TTTTTourism Pourism Pourism Pourism Pourism Patterns in Indiaatterns in Indiaatterns in Indiaatterns in Indiaatterns in India

In 2003 India received a record 2.8 millionforeign visitors, 15.5% more than in 2002. India’sshare of world tourist arrivals in that year, however,was only 0.38%, the same share as in the early1990s. From 1995 to 2003 international arrivals inIndia grew at an average annual rate of 3.7%. Theannual rate of growth during the 1999 to 2003period, however, was only 2.7% (Table 7), incontrast to the world average of 3.3%. Whereas thePRC is now ranked among the world’s top fivetourism destinations, India still ranks around 40th.The past decade has been difficult for India,reflecting sanctions imposed by Western countriesdue to nuclear tests, and security concerns due tothe war with Pakistan, the Afghan War, the Iraq War,the terrorist attack on India’s Parliament, riots inGujarat, and other developments. Since October2002, however, there has been a revival in tourism,due to significant policy changes and increasedcommitment from the Government of India.

The length of stay for foreign visitors to Indiaaverages about 21 days, which is among the highestin the world. Consequently, India’s share of worldtourism receipts was 0.62% in 2002, or almostdouble its share of total world tourism visits.Tourism receipts (foreign exchange earnings) for

India amounted to $2.9 billion in 2002 and $3.6billion in 2003.

The recent surge in the Indian economy hasincreased tourism. The number of Indian nationalstraveling abroad surged to an estimated 5 million in2003, up from 4.1 million in 2001. As noted earlier,India received over 300 million domestic tourismarrivals in 2003. A major inbound market for India isthe significant population of persons of Indian origin(PIOs) with foreign passports, estimated by FICCI tonumber about 22 million and spread over 110countries. Less easy to monitor are non-residentIndian (NRI) nationals, who also account for a verylarge volume of VFR and business traffic.

India’s main source markets are Europe, SouthAsia and North America, which accounted for 31%,26%, and 19%, respectively, of tourist arrivals in 2002(Table 11). Bangladesh alone accounted for 436,000tourist arrivals in 2002, or 18% of the total. The UK isalso a significant market for India. Other sourcemarkets of significance include Sri Lanka, France,Japan, Germany, and Malaysia. New Delhi is themain port of entry; Kolkata accounts for less than5% of arriving visitors.

As shown in Table 14, intra-regional arrivals inIndia from SASEC countries are increasing inimportance, contributing more than 20% of allarrivals in 2002. The true number is likely to bemuch higher when overland cross-border traffic isincluded. Seasonality is not marked and tourism isspread fairly evenly throughout the year. One thirdof foreign visitors to India combine that visit withvisits to other countries in Asia, notably Nepal.Culture is the main attraction for the non-business,non-VFR visitors, according to a DOT India exitsurvey.

Of particular relevance to the TDP, an averageof about 35% of foreign visitors to India visit the 13North, East, and North East, states (Table 7). Inaddition, these states received almost 90 milliondomestic visits in 2002, most notably to UttarPradesh and West Bengal.5

When only the eight North East states areconsidered, however, foreign arrivals are low,averaging only 19,000 annually over the last 5 years.In 2003 only 25,240 foreign tourists visited the eight

5 MOT. 2002. Domestic Tourism Study. New Delhi: Government of India.

36


Table 14: Number of Visitor Arrivals from SASEC Countries in India, 1997 to 2002

Country 1997 1998 1999 2000 2001 2002

Total Arrivals in India 2,374,094 2,358,629 2,481,928 2,649,378 2,537,282 2,384,398

From: Bangladesh 355,371 339,757 414,359 414,437 431,312 435,867

Bhutan 2,318 2,915 3,896 2,893 3,517 4,123

Nepal 43,155 38,199 25,859 38,801 41,135 43,056

TTTTTotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arrivalsrivalsrivalsrivalsrivals 400,844400,844400,844400,844400,844 380,871380,871380,871380,871380,871 444,114444,114444,114444,114444,114 456,131456,131456,131456,131456,131 475,964475,964475,964475,964475,964 483,046483,046483,046483,046483,046SASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of Totalotalotalotalotal 16.816.816.816.816.8 16.116.116.116.116.1 17.217.217.217.217.2 17.217.217.217.217.2 18.718.718.718.718.7 20.320.320.320.320.3


Source: Government of India.

Figure 3: Tourism Patterns in India

37


North East states, up 30% from 2002, but downdramatically from the 41,167 in 2001. This dropreflected declines in international arrivals in Sikkim,from 31,028 in 2001 to an estimated 7,800 in 2003.Sikkim’s main international markets are Europe, US,UK, and Japan. Domestic tourism has been morestable to the North East, with just over two milliondomestic arrivals in the eight states in 2003. Sikkimis successful in attracting high-yield domesticmarket segments as well as trekkers, youth traininggroups, and adventure enthusiasts.

5.5.5.5.5. TTTTTourism Pourism Pourism Pourism Pourism Patterns in Nepalatterns in Nepalatterns in Nepalatterns in Nepalatterns in Nepal

Total arrivals for 2003 are provisionallyestimated at 320,000. During the first four monthsof 2004, air arrivals showed convincing growth of48% over the same period in the previous year, withforeign arrivals registering 51% growth. Nepal’sinternational visitor arrival numbers have fluctuatedsharply over the past decade, however, and declinedon average at an annual rate of 1.5% from 1995 to2003. Arrivals peaked in 1999 at nearly a half millionforeign visitors. But significant drops in 2001 and2002 brought arrivals down to 1991 levels, withIndian visitors falling to less than half earlier levels,and foreign (third country non-Indian) touristarrivals down by 43% during the same period.Recovery occurred in 2003, with growth of 23% inair arrivals and 16.2% in estimated total arrivals,fueled by growth in Indian arrivals. Nevertheless,tourism in Nepal remains vulnerable to thecontinuing uncertainties of the conflict.

Visitors by air from India traditionally accountfor about a third of all arrivals in Nepal. Table 15shows the recent significant growth of intra-regionalarrivals from SASEC countries. As can be seen inTable 16, other important markets for Nepal tourismremain Japan, Europe, and the US despite recentdisruptions. Asia and the subregion representsignificant emerging markets for Nepal, particularlythe PRC. Asia grew from 51% of total arrivals in 1999to 57% in 2002.

While news of the insurgency has of course hada negative influence on tourism, a number of recentevents have had positive effects, including (i) theMount Everest Golden Jubilee celebrations in May2003; (ii) the opening of 50 new trekking peaks, 123new mountaineering peaks, and 5 new rivers for

rafting; (iii) the issuing of free visas for SAARC and,PRC citizens; (iv) waiving the need for liaison/environment officers on restricted area treks; (v)promotions in Indian and Asian pilgrimage marketsegments, and; (vi) the availability of discountedpackage tours from India.

Holiday and pleasure are the main purposesof travel to Nepal, accounting for 40% of arrivals in2002, followed by treks and expeditions at 22%,business at 6%, and pilgrimage at 5%. Visitorsdesiring treks, expeditions, and pilgrimage havebeen increasing faster than other market segmentsin recent years. Arrivals and length of stay sufferedin 2002 when trekkers could not move around thecountry due to the security situation. Trekking since2003 has been limited almost exclusively toAnnapurna, Langtang, and Sagarmatha. Thelongest staying visitors are from Australia,Denmark, Canada, Netherlands, Switzerland,Germany, and the UK, with an average length of stayof 16 days, mostly for trekking. The overall averagelength of stay dropped from 12 days in 2001 to 8days in 2002, but the majority of visitors stay foronly 2 to 3 nights. Foreign exchange receipts fromtourism more than doubled during the period 1991to 1999 from $59 million to $168 million. Since thentourism earnings have declined with decreasingvisitor numbers. In 2002 Nepal earned $106.8million from tourism, representing averagespending per day of $65. Rupee income from thesignificant number of subregional visitors is notcounted in tourism foreign exchange receipts.

Visitors to Nepal mostly arrive by air (about80%) at the country’s only international airport inKathmandu. Land entry points open for foreignersare at Sunauli, Kodari, Kakarbita, Mahendranagar,Birganj, Nepalganj, and Dhangadhi. NTB isestablishing Tourism Service Centers at key crossingpoints along the Asian Highway in Nepal. Some 22%of all arrivals visit Pokhara, Nepal’s seconddestination after Kathmandu, mostly by air fromKathmandu.

In 2002, Nepal had 37,616 beds in 943 hotels,60% of which were in the Kathmandu Valley. Thesupply of hotel beds has far exceeded demand,resulting in low occupancy rates—less than 40%on average. Present hotel bed capacity couldaccomodate well over one million visitorsannually.

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Table 15: Number of Visitor Arrivals in Nepal from SASEC Countries, 1997 to 2003

Country 1997 1998 1999 2000 2001 2002 2003a

Total Arrivals by Air 421,857 463,684 491,505 463,646 361,237 275,468 265,600

From: Bangladesh 6,206 6,004 10,003 9,365 7,742 5,507 4,049

Bhutan 1,129 1,078 1,608 1,454 1,523 1,426 –

India 133,438 143,229 140,661 95,915 64,320 66,777 87,066

TTTTTotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arotal SASEC Arrivalsrivalsrivalsrivalsrivals 140,773140,773140,773140,773140,773 150,311150,311150,311150,311150,311 152,272152,272152,272152,272152,272 106,734106,734106,734106,734106,734 73,58573,58573,58573,58573,585 73,71073,71073,71073,71073,710 91,11591,11591,11591,11591,115SASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of TSASEC as % of Totalotalotalotalotal 33.433.433.433.433.4 32.432.432.432.432.4 30.930.930.930.930.9 23.023.023.023.023.0 20.420.420.420.420.4 26.826.826.826.826.8 34.334.334.334.334.3

SASEC = South Asia Subregional Economic Cooperation, – = no data available or not calculated.a Preliminary

Source: Nepal Ministry of Culture, Tourism and Civil Aviation and Nepal Tourism Board.

Figure 4: Tourism Patterns in Nepal

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Table 16: Number of Visitor Arrivals in Nepal by Nationality, 1996 to 2003

Change2002/03

2003 AirAir Arrivals

Arrivals OnlyCountry 1996 1997 1998 1999 2000 2001 2002 Only (%)

India 122,512 133,438 143,229 140,661 95,915 64,320 66,777 87,066 33

Japan 28,923 35,038 37,386 38,893 41,070 28,830 23,223 19,551 9

United Kingdom 29,466 29,998 35,499 36,852 37,765 33,533 21,007 19,260 11

United States 25,155 30,056 35,902 39,332 40,442 32,052 17,518 16,675 8

Germany 24,963 22,374 23,862 26,378 26,263 21,577 15,774 12,648 0

France 19,913 21,573 21,992 24,490 24,506 21,187 13,376 13,213 26

Sri Lanka 5,758 4,021 11,031 12,432 16,649 9,844 9,805 924 (7)

Republic of Korea 5,255 5,543 2,786 5,098 8,880 11,568 8,798 – –

PRC – – – 5,638 7,139 8,738 8,715 4,418 27

Netherlands 8,718 9,214 14,403 17,198 16,211 13,662 8,306 5,641 5

Italy 10,258 11,034 12,864 12,870 11,491 8,745 8,057 6,190 5

Australia 9,720 10,227 11,132 11,873 12,189 10,455 7,159 6,060 5

Israel 6,477 8,143 7,538 7,412 8,078 7,411 6,286 3,597 3

Bangladesh 5,489 6,206 6,004 9,262 8,731 7,742 5,507 4,049 11

Spain 8,658 8,621 8,832 9,370 8,874 5,897 5,267 6,407 80

Thailand 4,855 3,499 3,280 5,917 8,709 5,312 4,694 – –

Canada 5,480 6,245 7,136 7,578 8,590 7,068 3,747 3,603 20

Switzerland 6,961 10,630 6,644 8,431 6,230 5,649 3,352 2,859 8

Austria 4,163 3,986 4,603 6,377 5,221 4,164 3,140 2,620 7

Belgium 5,495 5,033 5,483 5,513 5,406 4,803 2,847 2,114 (10)

Malaysia 2,630 3,654 2,597 2,835 3,486 3,787 2,777 – –

Denmark 4,454 4,322 4,781 4,577 4,847 3,854 2,040 2,014 9

Others 48,310 49,002 56,700 52,517 56,954 41,039 27,296 46,691 71

TTTTTotalotalotalotalotal 393,613393,613393,613393,613393,613 421,857421,857421,857421,857421,857 463,684463,684463,684463,684463,684 491,504491,504491,504491,504491,504 463,646463,646463,646463,646463,646 361,237361,237361,237361,237361,237 275,468275,468275,468275,468275,468 265,600265,600265,600265,600265,600 2323232323

PRC = People’s Republic of China, – = no data available or not calculated.

Source: Ministry of Culture, Tourism and Civil Aviation and Nepal Tourism Board.

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TWG will seek at all times to complement tourismactivities in the four countries, as well as thoseinitiated by SAARC and BIMST-EC.

2.2.2.2.2. TTTTTourism Development Agendaourism Development Agendaourism Development Agendaourism Development Agendaourism Development Agendaof Bangladeshof Bangladeshof Bangladeshof Bangladeshof Bangladesh

a. Policy and Plans

The Industrial Policy of 1999 identified tourismas a Thrust Sector. Prior to that, the National TourismPolicy of 1992 recognized tourism’s contribution topoverty alleviation. The beaches of Cox’s Bazar andKuakata along with the Sundarbans forest are to beestablished as Exclusive Tourist Zones. Eleven eco-parks have also been established across the country.

In 2003, the MOCAT examined the possibilityof establishing a National Tourism Board, followingthe private-public partnership approach of Nepal’sNTB. Ecotourism has been given high priority in theNational Environmental Policy and in tourismpolicy and programs. Plans and priorities in thenational Tourism Development Plan for 2003 maybe seen in Table 17.

B. Tourism Development Agendas

1.1.1.1.1. Subregional TSubregional TSubregional TSubregional TSubregional Tourism Developmentourism Developmentourism Developmentourism Developmentourism Development

South Asia does not have a history ofsuccessful subregional cooperation in tourism. InJanuary 2004, however, at the SAARC Summit inPakistan, 2005 was designated South Asia TourismYear. Additionally, the dramatic decision was takento relocate the SAARC Tourism Working Group baseto Sri Lanka. Tourism also featured prominently asa major component of the recent Plan for RegionalIntegration and Free Trade in South Asia, and theIslamabad Declaration states: “Development oftourism within South Asia could bring economic,social, and cultural dividends. There is a need forincreasing cooperation to jointly promote SouthAsia as a tourism destination inter alia by improvedair links.”

The TOR for the SASEC TDP calls for buildingon existing policy, planning, and marketingpriorities. Thus the foundation of the TDP is that

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Integrated Coastal ZoneManagement Plan.

Conservation and optimum uses ofmarine resources, enhancement ofalternate livelihood, and povertyreduction and ecotourism.

Ministry of Water Resources,Water Resources PlanningOrganization, ProjectDevelopment Office-IntegratedCoastal Zone ManagementPlan, and Ministry of CivilAviation and Tourism.

Table 17: Bangladesh Tourism Development Plan Priorities, 2003

PlansPlansPlansPlansPlans PrioritiesPrioritiesPrioritiesPrioritiesPriorities Responsible InstitutionsResponsible InstitutionsResponsible InstitutionsResponsible InstitutionsResponsible Institutions

Source: Government of Bangladesh

Development of Sundarbans asecotourism product.

Ecotourism. Ministry of Environment andForest, Ministry of Civil Aviationand Tourism, and BangladeshParjatan Corporation.

Sundarbans BiodiversityConservation Project.

Sustainability aspects of theSundarbans and alternate incomegeneration for the peoplesurrounding the mangrove forest.

Department of Environment.

Construction of a Marine Parkand Ecotourism Development atSt. Martin Island.

Sustainability of the Island. Ministry of Environment andForest and Ministry of Defense.

Establishment of an eco-park atSithakunda, Chittagong.

Plantation of trees andconservation of flora and fauna—an ecotourism project.

Ministry of Environment andForest.

A masterplan was prepared in1988 in which suggestions forthe development of Buddhistrelics sites were given.

Conservation of Buddhist relics andBuddhist circuit tourism.

Ministry of Culture,Department of Archeology, andMinistry of Civil Aviation andTourism.

To attract foreign and local investment, theGovernment has floated tenders for theestablishment of 5-star hotels and other touristfacilities. In addition, the Bangladesh ParjatanCorporation (BPC) is now seeking to develop itsvacant land on a build-operate-transfer basis, andmanagement of hotels is being transferred to localand foreign investors on a lease basis in an effort toimprove administration and financial managementand to develop public-private partnerships. Astrategy for developing the ecotourism potential of

the Sundarbans has recently been developed,including the leasing of accommodations ownedby BPC to private sector entrepreneurs.

b. Marketing Strategy

Historically, the Government has not givenhigh priority to tourism, and the industry hasgenerally overlooked the importance of marketing.BPC was formed in 1973 as the national tourismorganization to provide administrative and

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regulatory support to the tourism sector and toengage in promotional activities. Due to fundingconstraints, however, it has been unable to achievemuch in the area of marketing.

BPC has published brochures, CDs, andposters and established a website for internationalmarkets, but the material needs to be upgraded. Anumber of brochures have been published inBengali for the domestic and Indian market.Initiatives have been taken to translate somebrochures into Arabic and Japanese languages.Bangladesh attends international tourism events,such as the World Travel Mart in the UK,International Tourismus-Borse (ITB) in Berlin, theTravel and Tourism Fair (TTF) in Kolkata, JapanAssociation of Travel Agents (JATA) in Japan, andthe PATA Travel Mart. As a member of BIMST-EC,Bangladesh is now taking part in joint marketingefforts with other member countries to developtourism in the subregion.

c. Human Resource Development

Founded in 1974, the BPC’s National Hotel andTourism Training Institute (NHTTI) receivedtechnical and financial assistance from UNDP until1996. The NHTTI has trained about 19,000 personsin six subject areas: front office and secretarialoperation, travel agency and tour operation, foodand beverage services, housekeeping and laundryoperation, and bakery and pastry production. BPCis currently endeavoring to upgrade the school andinternational accreditation is being sought. Twoprivate universities are now offering aninternationally recognized four-year course intourism: a Bachelor of Science in Tourism andHospitality Management. The Department ofEnvironment provides training in ecotourism to itsstaff and other relevant personnel.

Bangladesh, however, urgently needs toupgrade the hospitality sector by training trainersin tourism marketing, planning, and management.For ecotourism products, Bangladesh needstraining in planning, site development,management, and conservation.

3.3.3.3.3. TTTTTourism Development Agenda of Bhutanourism Development Agenda of Bhutanourism Development Agenda of Bhutanourism Development Agenda of Bhutanourism Development Agenda of Bhutan

a. Policy and Plans

Tourism is a priority sector in Bhutan’s NinthPlan 2003-2007. While the guiding policy will remain“high value, low impact,” tourism growth is nowactively encouraged as a revenue earner and ruralemployer. Tourist arrivals are projected to reach15,000 by 2007, when gross earnings should exceed$21 million and Government revenues from tourismare expected to reach $8 million.

Ninth Plan goals relevant to tourism include:

• Assist in the diversification of the nationaleconomic base and stimulate other economicsectors through the multiplier effect.

• Develop and strengthen the private sector.• Generate foreign exchange, increased incomes

for the industry, and revenue for the Government.• Increase jobs and employment opportunities

in the sector.

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• Facilitate appropriatedevelopment and growth oftourism infrastructurethrough active private sectorparticipation.

• Increase awareness ofBhutan and its uniqueidentity and generateinternational goodwill andpositive public relations.

• Encourage and facilitateincreased communityparticipation in tourismactivities.

• Improve tourism and travelrelated skills and knowledgethrough vocational training,education, and capacity-building programs.

• Generate awareness and commitment of allstakeholders to a pristine and unspoiledenvironment.

• Create an international image as a “high value,low impact” but value-for-money tourismdestination.

Programs include strengthening the capacityof Dhutan’s DOT with adequate manpower andfinancial resources, and preparation of a tourismdevelopment plan (masterplan) with assistancefrom the Austrian Government. Bhutan has anational ecotourism strategy that was published in2002.

Government policy strategists are consideringthe benefits of higher number of tourists. Highernumbers would support improved hotel facilitiesand amenities. Diversified and enhanced tourismproducts could increase the average length of stay(currently 7 days) and encourage off-season touristflows, thus contributing to employment, householdincome, and foreign exchange earnings.

Druk Air, the national carrier enjoys amonopoly servicing Paro, Bhutan’s only airport,with connections to Bangkok, Dhaka (temporarilysuspended), Gaya (seasonal), Kathmandu,Kolkata, and New Delhi. Druk Air’s seat capacitywill double with the acquisition of two Airbus 319sin late 2004.

b. Marketing Strategies

Some marketing functions have been devolvedfrom DOT to the Executive Committee of theAssociation of Bhutan Tour Operators (ABTO),which receives some funding from the TourismDevelopment Fund. Cost-effective marketingstrategies include:

• Establishing a high quality destination image.• Reprinting popular existing brochures and

developing new destination brochures,information leaflets and other promotionalmaterials, and establishing a website.

• Participating in select tourism fairs andfestivals as a platform for promotion andexchange with the private sector.

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• Establishing information counters at ParoAirport and Phuentsholing.

• Joint marketing as a subregional agenda to helpBhutan gain a wider reach and help ease thefinancial burden.

• Tapping into intra-regional travel, especially thehuge market in India, to help offsetdependence on foreign travelers who are moresensitive to security and other problems in theregion.

• Support of market positioning, productdevelopment activities, including

(i) preparation of a tourism resourceinventory prior to the development of

new products, and(ii) enhancement of existing tourism products

and development of new products, with anemphasis on culture, nature, andadventure using Bhutan’s competitiveadvantages. Efforts will be made toencourage community participation.

• Construction of wayside amenities on alltourist sections of national highways.

• Development and promotion of existingtrekking trails and related tourism infra-structure.

• Review of all tourism related public infrastructureand plans for their improvement.

• Standardization and certification of touristaccommodations, with special emphasis ondeveloping eastern Bhutan.

• Investigation of the potential of a secondairport in Bumthang, which would greatlyfacilitate travel to the east.

C. Human Resource Development

Because Bhutan seeks to position itself as ahigh value destination, human resourcedevelopment is vital. The establishment of a HotelManagement and Tourism Training Institute(HMTTI) is an important priority to improve overallservice standards, especially in view of theincreasing number of unemployed youth in Bhutan.

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Building local capacity and training guides areconsidered a priority in the industry. Together withHRD programs, improvement of touristaccommodations and related services will also bean important associated activity. Encouragingprivate sector investment in the industry is key tothe Government’s policy of making the privatesector the engine of growth. With the recent arrivalof two quality international hotel chains in Bhutan(Aman Resorts and Coma Hotels), training skillswithin the hotel sector will be upgraded.

4.4.4.4.4. TTTTTourism Development Agenda of Indiaourism Development Agenda of Indiaourism Development Agenda of Indiaourism Development Agenda of Indiaourism Development Agenda of India

a. Policy and Plans

India’s Tenth Five-Year Plan 2002–2007 setexplicit targets for key indicators of humandevelopment. These are to reduce the poverty ratioby 5%, to provide additional employment anduniversal primary school education, and toincrease the literacy rate to 75%. The Tenth Planredefines the role of government in the context ofa strong and vibrant private sector, andemphasizes the provision of infrastructure.Balanced growth among all states is emphasized.With regard to tourism, it targets 4.3 millioninternational visitors by 2007. By 2010, India istargeting an ambitious five million internationalvisitors and 400 million domestic tourists.

To achieve this, the Government hasincreased by five times the allocation to MOTduring the Plan period. Economic liberalizationpolicies have led to high growth and relaxedforeign exchange regulations, resulting in stronggrowth in outbound travel. The award winning“Incredible India” market branding has successfullypositioned India as a top destination. Civilaviation liberalization, including charters, hasimproved regional access.

The objectives of the National Tourism Policyemphasize the following elements as key to tourismdevelopment:

• an institutional framework that is government-led, private-sector driven, and communitywelfare oriented,

• a deep-rooted relationship between tourismand cultural assets,

• sustainability as the guiding principle, and• development of ecotourism in its broader

context, and rural tourism as a means ofemployment generation, eradication of poverty,skill development, craft development, andenvironmental upgrading.

The Constitution of India clearly defines theresponsibilities of the Government and the Stateswithin the country’s federal structure through theCentral List, the State List, and the Concurrent List.As tourism is a multidimensional activity, it is notmentioned in any of the Lists, resulting in ambiguityabout the roles of the Center and Stategovernments. There is a long-standing demand tomake tourism a subject in the Concurrent List.

The institutional framework for tourismdevelopment varies from state to state. Each has adepartment of tourism that is either independent orcombined with another department, and assisted inalmost all states by a development corporation.Uttaranchal is the only state having a tourismdevelopment board with private sector participation.A few states such as Kerala have developed advisorycouncils for peoples’ participation at product andgrass-root levels, but most states lack suchmechanisms. As part of ecotourism activities at local

46


levels, there is scope for applying the Rio sustainabledevelopment Local Agenda 21, which calls for globalaction involving local communities.

Government tourism development is financedthrough both the Plan Budget of MOT, and Planallocation to the states directly by the PlanningCommission. Recently, significant increases infunding to MOT reflect the priority being accordedtourism.

In 1998 MOT formulated its Ecotourism Policyand Guidelines, covering India’s ecotourismresources. The Policy also contains operationalguidelines and delineates the responsibilities ofgovernment authorities, developers, operators andsuppliers, visitors, host communities, andnongovernment organizations (NGOs). Somestates, such as Uttaranchal, have formulatedecotourism guidelines to take care of their specialfeatures. Others focus on ecotourism as part ofoverall tourism policy, and have adopted the centralguidelines. The eight states of India’s North East

receive a special development grant from theGovernment of India budget and are recognized asecotourism leaders. Sikkim has won nationalenvironmental and ecotourism awards.

Among the various measures undertaken forecotourism and the environment is the HimalayanTourism Advisory Board, a consultative mechanismcomposed of experts that formulates coordinated,sustainable practices for the states of theHimalayan region.


The general approach of the Government totourism development is based on selectivemasterplans in designated areas. All the areasselected for development are relevant to ecotourismand Buddhist circuits. Five-fold increases inbudgets for tourism promotion have enabled MOTto have a positive impact with its international andregional marketing activities, particularly its recent

Figure 5: India’s North East

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highly successful and award winning “IncredibleIndia” campaign.

In SASEC areas selected, the marketpositioning is: Eastern region: Buddhist circuit;Northern region: Himalaya; and North East Circuit:ecotourism and Buddhism.

Of the eight priority areas selected forpromotional and product development activities inthe Tenth Plan, six focus on ecotourism and productdevelopment: (i) cultural tourism, (ii) ecotourism,(iii) development of Himalayan tourism, (iv)adventure sports tourism, (v) development of ethnictourism, and (vi) pilgrim and spiritual tourism.


The Tenth Plan and the National TourismPolicy 2002 state that employment generation isone of the main objectives of tourism. The NationalTourism Committee Report (1988) mentions 26sectors where employment is directly or indirectlyaffected by tourism, with hospitality, travel, andtourism having the most relevance to HRD planningneeds. Other priorities need to consider bothdomestic and foreign tourists, the use of both directand indirect employment opportunities, andspecific needs to upgrade the quality of services.

India has well-established institutionalarrangements for HRD, both for the hospitality

sector and the travel and tourism sector. Thoughthe present capacity is primarily in the governmentsector, it is expected that by 2006 the private sectorwill account for 55% of tourism training.

In summary, the present state of HRD intourism is:

• The National Council for Hotel Managementand Catering Technology was established in1982 as the country’s apex regulatory andmonitoring body for hospitality managementeducation.

• Twenty-one Institutes of Hotel Managementand Catering Technology all over the countryoffer three-year degrees in Hotel Managementand diploma courses in a large number of otherdisciplines.

• Fourteen Food Craft Institutes provide craft-level training.

• IITTM was established in Gwalior in 1982 as theumbrella institution, with five chapters to“develop and promote education, research andtraining in travel and tourism.”

• The Indian Institute of Skiing andMountaineering was set up in 1962 to providetraining in adventure sports.

• The National Institute of Water Sports at Goawas established in 1990 to provide training inwater sports and safety standards.

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• The training of guides is controlled bygovernment at three levels: regional-levelguides are trained by the Central Government;state-level guides are trained by stategovernments; and local-level guides are trainedunder the control of the local administrations.

• Many Indian universities have travel andtourism management courses. A 1999 surveyestimated that 13 universities and 45 collegeshad tourism courses at post-graduate levels.

Despite this capacity for training, there is amismatch between demand and supply, with arecent MOT survey estimating the need for 50%more trained personnel to meet the needs posedby projected increases in arrivals by 2005. Thepresent HRD training also applies only to theorganized components of the sector, i.e.accommodation and travel services. Indian tourismincludes an enormous unorganized sector thatsupplies vital services to visitors without the use oftrained personnel. DOT has a Capacity BuildingProgram targeted at improving these services.

5.5.5.5.5. TTTTTourism Development Agenda of Nepalourism Development Agenda of Nepalourism Development Agenda of Nepalourism Development Agenda of Nepalourism Development Agenda of Nepal

a. Policy and Plans

Nepal’s Tenth Plan 2001–2006 recognizes thetourism sector’s ability to contribute to the nationaleconomy through increased opportunities forincome generation and employment. That Plancontains the following objectives:

(i) promotion of the tourism sector witha view to achieving sustainabledevelopment and contributing to povertyalleviation,

(ii) increase peoples’ participation in theconservation of historic, cultural, religious,and archaeological heritage, and

(iii) establishment of a standard airport andaviation service for domestic andinternational flights.

To achieve these objectives, the Tenth Plan hasidentified three priority areas: marketing andproduct development, tourism facilitation, andinfrastructure development. Activities andindicators are delineated in Table 18, with theirrelevance to the twin themes of ecotourism andBuddhist circuit.

The Tenth Plan also set goals for Nepaltourism, some of which are quanitative:• Achieve 7.2% annual growth in tourist arrivals

with 516,000 visitors by 2006.• Lengthen average visitor stay to 13 days.• Increase foreign exchange earnings by 7.9%

annually to $205 million, with earnings betterdistributed to rural areas.

• Increase employment opportunities.• Increase seat capacity on international flights.• Enhance domestic tourism.• Enhance the contribution of tourism to the

economy by 3%.

The Ministry of Culture, Tourism and CivilAviation (MOCTCA) oversees the implementationof these national objectives. NTB, a public-privatepartnership, coordinates all activities relating toproduct development, marketing, and promotion innational and international markets.

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The Government is keen to promote tourism asa source of foreign exchange income, employment,and poverty alleviation through the distributive effectsof rural tourism. Market promotions position Nepalas “Mount Everest and More,” with a prominent focuson attracting regional visitors since the collapse oflong-haul markets. Pilgrimage tourism is a feature ofNTB’s recent promotions.

Strategies for regional promotion include freevisas for tourists from SAARC countries and fromthe PRC (announced in July 2003), and for alltourists visiting Nepal for 3 days or less. A singleentry visa fee of $10 for 15 days is designed toappeal to Sri Lankan pilgrims visiting Lumbini. NTBroadshows and marketing activities in Japan andThailand, and the recent production of a pilgrimagebrochure and a Buddhist Circuits CD, promoteLumbini, Kathmandu Valley, Buddhist sites and themore remote attractions, such as ThyangbocheMonastery and the Khumbu.

To encourage Hindu pilgrimage tourism fromSouth India, discounted economy packages werepromoted in 2003 with great success. There are good

prospects in other parts of India for the promotion ofpilgrimage visits, as the Hindus of India consider visitsto Pashupatinath temple in Kathmandu, Muktinathin Mustang and many other holy Hindu pilgrimagesites as spiritually important.


The Nepal Academy of Tourism and HotelManagement (NATHM) was established in 1972 as theHotel Management and Tourism Training Center(HMTTC) under MOCTCA with support from UNDPand ADB. It has provided training in the hotel, travel,and trekking sectors to 17,300 students. Twenty-sixprivate sector institutes have been set up tosupplement the efforts of NATHM. In addition, theCouncil for Technical Education and VocationalTraining (CTEVT) offers basic courses in hotelmanagement at the Lete and Pokhara training centers.

Nepal is presently self-sufficient in tourismtraining. In order to upgrade the quality of services,however, there is a need to coordinate the qualityand standard of courses offered by differentinstitutes so that they can be termed “centers ofexcellence” in the subregional context.

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Tourismmarketing andproductdevelopment.

Infrastructuredevelopment.

TourismFacilitation

Increase number ofpromotional activities.- Follow World Heritage

guidelines- National heritage sites

developed andconserved.

- Improve infrastructureand physical structures

- New destination opened- Increase tourist activities

in national parks andnature conservation areas.

Air services at ecotourismareas.Enhanced Infrastructureand institutions forecotourism developed.Dumping sites/incinerators established.Air pollution standardimproved.Strengthen air safetystandards.

Visa issuing simplified.Domestic air servicesenhanced.Number of internationalconnections and carriersincreased.

Tourism service standardsstrengthened andmonitored.

MOCTCANTBMOCTCADOA

NTBMOCTCA

MOCTCANTBMOLD

MOLDMunicipalitiesMOPE

CAAN

MOHMOCTCA

MOPPW

NTB

Both

Buddhistcircuits

Ecotourism

Ecotourism

Ecotourism

Ecotourism

Table 18: Nepal Tenth Plan Priorities, 2001 to 2006

Plans and Activities Immediate Institutional RelevancePriorities Indicators Framework to theme

Promotional activitiesfocused in regionalmarkets.Development andconservation of nationalheritage/ religious sites.

Promote Ecotourism.

Develop infrastructureand institutions forecotourism.

Manage solid wasteand pollution.

Manage air safety.

Simplify Immigrationsystem.Expand transportationfacilities for tourism.Accessibility ofinformation.

Promote quality oftourism services.

DOA=Department of Archaeology, MOLD=Ministry of Local Development, MOPE=Ministry of Population and Environment,MOH=Ministry of Home, CAAN=Civil Aviation Authority of Nepal, MOCTCA=Ministry of Culture, Tourism and Civil Aviation; andMOPPW=Ministry of Physical Planning and Works.

Source: National Planning Commission. 2003. The Tenth Plan (2002-2006) (Summary). Nepal.

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2.2.2.2.2. TTTTTourism Attractions of Bangladeshourism Attractions of Bangladeshourism Attractions of Bangladeshourism Attractions of Bangladeshourism Attractions of Bangladesh

a. Overview

Although visitor attractions in Bangladesh arenot yet well known in tourism circles, Bangladeshoffers some premier Buddhist sites. Additionally,there are sites with ecotourism potential, both inthe Sundarbans and amidst the ethnic peoples ofthe Chittagong Hills.

b. Buddhist Circuits

The ruins of Paharpur Monastery lie 300kilometers (km) (a 5.5 hour drive) north of thecapital city of Dhaka, covering an area of 11 hectares.It is the largest known Buddhist monastery southof the Himalaya. Dating from the 8th century, thisimmense quadrangular monastery has 177monastic cells enclosing a courtyard, and isdominated by a lofty central pyramidal stupa. A

C. Tourism Attractions

1.1.1.1.1. Attractions of the SubregionAttractions of the SubregionAttractions of the SubregionAttractions of the SubregionAttractions of the Subregion

The SASEC subregion contains the world’shighest mountain, the eastern Himalayan range, thelargest mangrove forest, the longest sea beach,internationally recognized biodiversity “hotspots,”and unrivalled cultural diversity. It is uniquely wellendowed with tourism resources, attractions andproducts that suit the ecotourism and Buddhistcircuit themes.

The subregion, particularly Nepal and Bhutan,is internationally acknowledged as “ecotourismpioneers” and home to practitioners who havedecades of experience, models, and case studies attheir disposal. Examples include the AnnapurnaConservation Area Project (ACAP), the SagarmathaPollution Control Committee, Bhutan’s NationalEcotourism Strategy, the current Tourism forPoverty Alleviation Program (TRPAP) jointly fundedby DFID, UNDP, and the Netherlands DevelopmentAgency (SNV), and several award-winning privatesector operators.

The subregion boasts many of the world’smajor Buddhist sites, particularly those directlyassociated with the life of Lord Buddha. These arethe goals of pilgrimages from all over the world. Inaddition, the subregion’s ancient monasteries,“sacred landscapes,” and hidden valleys (beyuls)attract visitors interested in living Buddhism in theHimalaya.

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cultural World Heritage Site, UNESCO has beenproviding technical and financial assistance toBangladesh to implement a masterplan for itspreservation. A site museum houses the findsexcavated from the area.

About 2.5 hours (114 km) from Dhaka by road,Mainamati was the seat of a Buddhist civilizationthat flourished between the 7th to 12th centuries.Excavations on an isolated, 18 kilometer-long spurof a dimpled low hill range known as the LalmaiMainamati Range have revealed 52 ancient sitesdotting the hills, most of them Buddhistmonasteries, temples, and stupas. Excavationshave also yielded a rich collection of stones andbronze sculptures of Buddha, various gods andgoddesses, coins, royal copper plate grants,terracotta plaques, jewelry, pots and pans, andother miscellaneous objects of daily use. Thesefinds are on display at the site museum.

The 3rd century BC city of Mahastangar is theearliest documented urban civilization inBangladesh, situated 240 kilometers northwest ofDhaka. “Mahastan” means “a great place.” Thisspectacular archaeological site with its fortifiedcitadel is an imposing landmark in the region andwas recently excavated by a Bangladeshi-Frenchteam. The ruins of this ancient city are spread overa semicircle of about 8 kilometers in radius. Afterits destruction by a great fire, this city wasabandoned in the 15th century. Buddhist ruins,such as Govinda Bhita, the stupa of Gokul Medh,and the monastery of Vasu Bihara surround thefortified city.

c. Ecotourism Based on Nature and Culture

The 15th century Shaat Gambus Mosque atBagerhat is a cultural World Heritage Site. Thismosque with 77 domes is the most magnificent andthe largest brick mosque in Bangladesh. The statelyfabric of the monument, serene and imposing,stands on the eastern bank of a vast water tank.Khan Jahan, a saint ruler, laid the foundations ofthe affluent city of Khalifabad, now known asBagerhat, in the middle of the 15th century, with themosque at its center. Bagerhat is 368 kilometersfrom Dhaka.

Kantaji Hindu temple was built in 1752. It islocated near Dinajpur town, which is 405 kilometersnorth of Dhaka. The temple is a three-story structureresting on a slightly curved and raised plinth ofsandstone blocks. Unfortunately, all the ornatetowers of the temple collapsed during anearthquake at the end of the 19th century. Thetemple walls are beautifully embellished withexquisite terracotta plaques portrayingmythological stories from Hindu epics, as well ascontemporary social scenes and scenes showingfavorite pastimes.

The Sundarbans, the world’s largest mangroveforest, is situated on the coast of the Bay of Bengalin the southwest corner of Bangladesh. The area ofthe forest is about 10,000 square kilometers, ofwhich 62% is in Bangladesh and 38% in the IndianState of West Bengal. Hundreds of rivers and canalsintersect the Sundarbans, home of the worldfamous Royal Bengal Tiger. Spotted deer, barkingdeer, wild boar, rhesus monkeys, monitor lizards,estuarine crocodiles, and pythons can also be seen.A natural World Heritage Site, the Sundarbanscontains 14 of the world’s 35 mangrove plantspecies. The best way to see the Sundarbans is froma cruise boat. Residents of the Sundarbans are notyet benefiting from tourism or contributing to itsconservation, a challenge that must be overcome.

Thirteen colorful ethnic tribes live in theChittagong hill tracts, part of the Arakan-Yomarange in southeast Bangladesh. One of the tribes,the Cooky, still maintains a primitive lifestyle. Thesepeople are Mongoloid. While some of them areanimists, most are Buddhists and have builtbeautiful monasteries.

The longest unbroken ocean beach in the worldis at Cox’s Bazar. This shark-free beach is 120kilometers long and slopes gently down into the bluewaters of the Bay of Bengal. The wide beach isendowed with golden sand and attracts more than300,000 visitors annually, mainly domestic andIndian visitors. Cox’s Bazar is 422 kilometers by roadfrom Dhaka, and 152 kilometers from the port city ofChittagong. It is also connected to Dhaka andChittagong by air.

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3.3.3.3.3. TTTTTourism Attractions of Bhutanourism Attractions of Bhutanourism Attractions of Bhutanourism Attractions of Bhutanourism Attractions of Bhutan

a. Overview

Bhutan has a pristine environmentwith spectacular mountain scenery and anetwork of national parks with rare andendangered species. Its population issmall, but its people are warm and friendlywith a rich, living culture. Bhutan offers aunique tourism product.


Bhutan maintains a strong, livingBuddhist tradition and culture. Itsfortresses (dzongs), temples, andmonasteries (gompas) are active institutionsthat also constitute the major tourism attractionsof the country. Bhutan portrays living Buddhism inthe Himalaya in a vibrant, flourishing way that is inkeeping with the middle path philosophy of LordBuddha’s teaching. Traditional lifestyles outside ofThimphu are well preserved and offer an insight toBhutanese culture. Local festivals and rituals arethriving and are big attractions for visitors. In moreremote areas, good examples of these festivals andrituals may be seen in Jambay Lakhang Drup andUra in Bumthang district. Bhutan’s DOT is presentlymaking an inventory of local festivals in an effort tolengthen the season from the main Tsechus of Paro(March and April), Thimphu (September andOctober), and Punakha (January and February).Bhutan has strong appeal for visitors studyingBuddhism and its values.


The natural environment in Bhutan isexceptionally well preserved, with 70% of the landset aside as forest cover. Eight protected areas coverone quarter of the country. Bhutan’s 13 approvedtreks are wilderness experiences with few villagesand unclimbed peaks. Although the shorter treks,particularly the Jomolhari Trek and Drukpath, arethe most popular, the Lunana Snowman Trek is theicon adventure product and defines the GreatHimalayan Trail in Bhutan. The flora and faunaattract specialist market segments such as bird

watchers. Helicopters would make outdooradventure activities, such as fishing, mountainbiking, river rafting, and kayaking in remote areasmore accessible for visitors. Mountaineering is notpermitted in Bhutan.

A major resource for tourism is always theattitude of the host community, and Bhutanesegenerally view tourism very positively. Conservationof the natural and cultural environment willimprove if locals are more actively involved intourism benefits.

Complementary activities are becomingavailable, enhancing the visitor experience andimproving the prospects for off-season tourism.These include museums, historic monuments, craftshops, and open-air markets, as well as music anddance facilities. Repeat tourism will also increaseas Bhutan’s tourism sector matures and broadensin scope.

4.4.4.4.4. TTTTTourism Attractions of Indiaourism Attractions of Indiaourism Attractions of Indiaourism Attractions of Indiaourism Attractions of India

a. Overview

There is great potential for strong growth intourism given India’s unique endowments ofbiodiversity, forests, rivers, mountains, monuments,and culture. The challenges lie in successfullypreserving and presenting these attractions in theirauthentic form, and making them accessible andappealing to domestic and international markets.

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The National Tourism Policy of India outlinesthe nature of India’s tourism product: wide variety,something for every season, tradition, civilization,and modernity. The core attractions work well withthe SASEC themes and can be summed up as aunique cultural heritage, widely divergentbiodiversity and ecotourism, and a spiritualexperience unlike anywhere else.


All three aspects of the Buddhist circuitsubthemes—Footsteps, Living Buddhism and Art andArchaeology—are most prominently present in India.

India has three of the four most holy sites in theFootsteps of the Lord Buddha circuit. Bodh Gaya isrecognized as a World Heritage Site, with themagnificent Mahabodhi temple and many others.Sarnath, outside Varanasi, is hallowed as the deerpark where Buddha preached his first sermon andset in motion the “wheel of the dharma.” Kushinagar,the place of Mahaparinirvana, has remains of manymonasteries dating from the 4th to 11th century. Inaddition, there are numerous holy places associatedwith the travels of Lord Buddha in the area, includingRajgir, Vaishali, and Sravasti.

Although data for visitor arrivals at individualmonuments shown in Table 19 reveal someinconsistencies, it is estimated that about 50,000domestic and 15,000 foreign persons travel thecircuit annually, visiting four or more sites; manymore visit individual sites when there are important

festivals and teachings. Tourism operators estimatethat between 6,000 to 7,000 foreign visitors travelthe circuit in packaged groups each year, the resttravelling as FITs. Analysis of arrival patterns at theIndian sites show that international tourist arrivalshave been almost constant or declining marginallyfrom 1999 to 2002, except at Bodh Gaya. Arrivalsthere have doubled since 2000, reflecting thedevelopment of nearby Gaya Airport. Some visitorsarrive via Patna and Lucknow airports. Domestictourism has been either constant or decliningexcept for at Vaishali and Kushinagar.

Sikkim, Ladakh, and parts of Arunchal Pradeshhave some of the most prominent examples ofliving Buddhism. Sikkim has 107 monasteries, foursacred caves blessed by Guru Rinpoche, the talleststatue of Guru Rinpoche, and 29 sacred lakes.

Some of the finest examples of Buddhist artand culture are to be found in the great Rumtek andPemayangtse monasteries in Sikkim. The Tawangmonastery in Arunchal Pradesh, situated at 3,400meters, is one of the largest in India. Udaygiri(84,000 visitors in 2001), Lalitgiri (23,000 visitors),and Ratnagiri (8,910 visitors) in Orissa are examplesof ancient centers of Vajarayana Buddhism thatwere prominent until the 12th century.

Buddhist traditions spread beyond the SASECsubregion to wider areas of India, covering statesas far flung as Ladakh, Andhra Pradesh, HimachalPradesh, and Tripura. Buddhist World Heritage Sitesin Ajanta, Ellora, and Samchi supplement theattractions of the core Buddhist circuit.

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The SASEC subregion of India is primeterritory for ecotourism. India’s national tourismpolicy states: “ecotourism should be made a prioritytourism product for India with the focal pointslocated in the Himalaya and North East States.” Thecircuit selected for development in the North Eastby the Government has appropriately been calledthe Ecotourism Circuit and promoted as“Undiscovered Paradise”. An MOT report sums upthe North East product.”

The rich natural beauty, serenity and exotic flora andfauna of the area are invaluable resources for thedevelopment of ecotourism. The region is endowed withdiverse tourist attractions and each State has its owndistinct features. These attractions and the people of theregion constitute the tourism resources at large.

Ecotourism and adventure activities are suitablefor many parts of India. Opportunities stretch fromrolling hills of Darjeeling and Kalimpong, andMeghalaya—known as “Scotland of the East,” to thehigh mountains in Arunchal Pradesh and Sikkim, andacross the Dooars plains to the beaches of Orissa andWest Bengal. Huge, swift-running rivers that are idealfor such recreation as white water rafting and fishing,intersect the entire region. Dams associated withhydro installations also offer water-based tourismpossibilities. Darjeeling and Assam are household

names in much of the world, and there areopportunities to exploit this high profile and furtherpromote tourism based on tea as an add-on forgeneral interest markets. Sikkim recently received anaward by Green Indicators 2004 as the state doingmost to protect its natural heritage. Each year about2,000 foreign trekkers enjoy 10 designated treks inSikkim.

India is known worldwide for its extensivewildlife, flora, and fauna that have been attractinginternational visitors for decades. The mangroveforests of the Sundarbans World Heritage Site inWest Bengal attract about 50,000 domestic and2,000 foreign tourists annually. Other attractionsinclude the tiger reserve of Manas with its goldenlangur monkeys, the rare hornbills in Nagaland, andone-horned rhinos in Kaziranga National Park. Thelatter received 15,988 domestic and 831 foreignvisitors in 2003. A “necklace” of world classprotected areas in India link the subregion,including Jaldapara, Kaziranga, ManasKanchenjunga, Pabitara, and Jim Corbett NationalPark. Orissa has beaches where turtles breed aftercrossing thousands of kilometers of ocean.

India is also renowned for its incomparableculture and historic monuments. The Taj Mahalin Agra is India’s and SASEC’s single mostpopular attraction, drawing about two millionvisitors annually. The cultural mosaic and ethnicvariety available in the country is ananthropologist’s delight. India is a melting pot of

Table 19: Visitors to the Footsteps of the Lord Buddha Sites, 2002(Number of visitors)

Domestic International

Vaishali 85,084 15,065

Rajgir 624,301 16,182

Bodh Gaya 94,950 65,270

Kushinagar 181,346 11,067

Sravasti 60,500 15,200

Sarnath (2001) 2,097,246 123,639

Lumbini (Nepal) 80,000 28,000

Source: State statistics, site custodians and the Lumbini Development Trust, Nepal.

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hundreds of tribes who preserve their heritage andblend with modern traditions in a unique way.Majuli in Assam is the largest river island in theworld and also the seat of the great Vaishnaviteculture. West Bengal has some of the fineattractions associated with their French and Britishheritage. There are strong ethnic links between thelittle known North East States and South Asia andSoutheast Asia.

5.5.5.5.5. TTTTTourism Attractions of Nepalourism Attractions of Nepalourism Attractions of Nepalourism Attractions of Nepalourism Attractions of Nepal

a. Overview

Nepal’s major attractions are the majesticHimalayan Mountains, cultural and artistictreasures, its friendly people, spectacularpilgrimage sites, and some of the richest ethnic andnatural biodiversity in the world. Almost 20% ofNepal’s land is designated as protected areas, withthe lowland Royal Chitwan National Parkconsidered one of the world’s best wildlife viewingexperiences. Nepal is the world’s only Hindukingdom, and home of Lord Buddha’s birthplace atLumbini.


Lord Buddha Prince Siddhartha was born inLumbini in 623 BC. Lumbini is situated in thelowlands of southwest Nepal, close to the Indianborder at Butwal and Bhairawa. Lumbini is a majorattraction of the Footsteps of the Lord BuddhaCircuit. There are seven associated Buddhist sitesnearby, including Tilaurakot Kapilavastu (27 kmwest), Niglihawa, Gotihawa, Sagarhawa, Arorakot,Kudan, and Ramagrama. The Lumbini Masterplanwas designed by the Japanese architect KenzoTange and approved by UNDP and the Governmentin 1978. Administered by the Lumbini DevelopmentTrust, some of the infrastructure requirements inthe Masterplan Area are still incomplete due to alack of resources. There are a number of newmonasteries supported by Buddhist countries.Although archaeological excavations are notpermitted in Nepal, a special case was made atLumbini, and a modern building now protects thesite. This building is adjacent to the pillar erectedby Emperor Ashok Maurya in 249 BC, whichauthenticates the exact spot where Queen MayaDevi gave birth to Lord Buddha. Lumbini isrecognized in Nepal as being of great importanceas a destination for both Buddhist and non-Buddhist visitors, but it has yet to realize thispotential.

About 80% (85,000) of the 108,000 visitors toLumbini are from India and Nepal. Of the 28,000international visitors, 60% are from Buddhistcountries such as Japan, Sri Lanka, Thailand, theRepublic of Korea, and PRC. Many connect Lumbini

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with other sacred sites in India and enter overlandfrom India via the border crossing at Sunauli. Othervisitors to Lumbini fly from Kathmandu to BhairawaAirport, or drive via Chitwan or Tansen and Pokhara.

Of the 10 World Heritage Sites andmonument zones in Nepal, 3 are dedicated toBuddhist culture: Lumbini, Bodhnath, andSwayambhunath. Many of these sites are sacredto both Buddhists and Hindus. NTB is promotingthe 15 Buddhist pilgrimage sites in and around the20 kilometer radius of the Kathmandu Valley as amajor Buddhist circuit. Kathmandu is the home ofVajarayana Buddhism. Many new monasteries andcenters of Buddhist learning in the Valley attest tothe fact that Nepal is one of the most vibrantcenters of Buddhism. In the northern Himalayanbelt, Tibetan Buddhism of the Mahayana school iswidely practiced, attracting visitors to spectacularmountain retreats and many monasteries, such asMustang and Dolpa, and Thyangboche, Chiwong,and Thupten Choeling in Solukhumbu.


Nepal’s cultural attractions includeKathmandu Valley’s unique palace squares andtemples, thousands of shrines, arts, history, andhospitable mountain people. Bhaktapur, a Newarcommunity, is a living model of community-managed urban conservation. Another feature ofNepal is the many colorful religious festivals thatdot the calendar. The friendliness of Nepal’sethnically diverse people attracts many repeatvisitors.

The Nepal Himalaya boasts 8 of the world’s14 8,000-meter peaks either within or on itsborders, including Mount Everest, the highest ofthem all at 8,848 meter. More that 100 expeditionsattempt to climb peaks every year. Trekking is thesingle largest market segment of visitors to Nepal.The record year was 1999, when over 120,000trekkers visited the country. Nepal’s experience asthe “inventor” of Himalayan trekking since mid-1960s, and the numerous projects designed tospread benefits to local people, places Nepal asleader of the field; this is evidenced by its manyecotourism case studies.

Nepal is the only South Asian country to beranked in the world’s top ten best adventure tourismdestinations. The Everest Base Camp trek isacclaimed as one of the best journeys of a lifetime.In addition to trekking and mountaineering, Nepaloffers river sports, mountain biking, paragliding, andbungy jumping.

6.6.6.6.6. The Asian Highway in SASECThe Asian Highway in SASECThe Asian Highway in SASECThe Asian Highway in SASECThe Asian Highway in SASEC

About 4,500 kilometers of the Asian Highwayconnect the SASEC subregion from east to west andnorth to south. There are a number of sections ofimportance to subregional tourism along itsnetwork, providing access and linkages to gateways,interesting sites, and Key Area attractions. Ingeneral, the tourism sector of SASEC advocatescontinued advancement of the Asian Highwayconcept. Continued advocacy is required topromote new border openings and visitor servicesin areas of the Asian Highway.

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Stretches of the Asian Highway (AH) of currentprimary importance to tourism are:

• New Delhi to Agra (AH1), recognizing Delhi asa gateway and the Taj Mahal as a major SASECattraction, and

• The north-south corridor linking Nepal withIndia, from Kathmandu to the border crossingat Raxaul/Birganj (AH2), to linkages viaNarayanghat to Royal Chitwan National Parkon the Footsteps of the Lord Buddha circuit.

Stretches of the Asian Highway of secondaryimportance for tourism include:

• east-west linkages from New Delhi via Banbasato Nepal’s Terai attractions and Narayanghat(AH2),

• the section from Kathmandu north to Lhasa inTibet Autonomous Region (TAR), PRC (AH42),

• access from East Nepal through Kakarbita toBagdogra/Siliguri in India and on viaBanglabandh/Changrabandha to Dhaka, viaPaharpur, in Bangladesh (AH2),

• kolkata south to the tourism sites of Orissa(AH45),

• kolkata to Dhaka (AH1), providing links to theSundarbans Key Area via Mongla, and

• links from Dhaka to the tourism sites of Chittagongand Cox’s Bazar (AH41), for regional visitors.

Asian Highway network sections with potentialtourism importance in the future include:

• stilwell Road, from India’s North East, linkingDimapur, Kohima, and Imphal with Mandalayin Myanmar (AH1/AH2),

• sections from Dhaka, Bangladesh to India’sNorth East via Shillong, (AH1 AH2), whentourism flows improve,

• onward links from Bangladesh via Cox’s Bazarand Teknaf into Myanmar (AH41),

• road improvements from Bagdogra/Siliguri viaPhuentsholing to Thimphu (AH48),

• potential road improvements from Bagdogra/Siliguri north to Darjeeling and Gangtok,Sikkim, recognizing that the opening of theNathu La into the PRC will increase trade andtourism traffic to Kolkata, and

• potential links from Bagdogra/Siliguri, openingup access to India’s North East through theDooars and Assam with improved roads.

Figure 6: Asian Highway Network in the SASEC Subregion

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D. Issues and Constraints

1.1.1.1.1. Subregional Issues and ConstraintsSubregional Issues and ConstraintsSubregional Issues and ConstraintsSubregional Issues and ConstraintsSubregional Issues and Constraints

Today’s tourism environment is characterizedby intense competition between the majorinternational destinations, and competition is likelyto increase. At the same time, there is greaterrecognition by almost all national governments ofthe importance of job creation, foreign exchangeearnings, and the other substantial benefitsassociated with tourism. Despite an impressiverange of attractions, the countries of SASEC aregenerally not achieving the full potential of benefitsfrom tourism.

Security problems threaten tourismsustainability in Nepal and in parts of India andBhutan. Bangladesh has a poor tourism imageabroad. Bhutan’s low tourism numbers are areflection of its high-end tourism policy.Importantly, in the context of this Plan, all SASECcountries have significant infrastructureweaknesses, especially road, rail, air, electricity,water, sanitation, and telecommunicationsinfrastructure. Similarly, all SASEC countries shareconcern about the standard of their tourist services,particularly customs and immigration procedures,health and hygiene facilities, attitudes towardhospitality, and the dearth of tourist information.

Recognition is now widespread that thebarriers to visiting SASEC countries and theconstraints to investing in their tourism industries

need to be addressed as a necessary complementto destination marketing. Border formalities,including visas and permits, are among the mostsignificant barriers (Table 20).

Travel procedures can be exceptionallycomplicated and restrictive in much of the SASECsubregion for both international and intra-regionalvisitors. Specific complications includeinconvenient currency restrictions between andwithin the four countries, lengthy processes andother entry formalities for some entry visas,requirements for Inner Line and Protected AreaPermits (PAP) for Arunchal Pradesh, Mizoram, andNagaland in India’s North East, and trek permitsand various other restrictions on internal travel.Some restrictions vary by nationality. For example,although visas for India are gratis for Bangladeshis,they are still restricted and difficult to secure. Ofthe four SASEC countries, only Nepal offers visason arrival for international visitors and free visasto nationals from SAARC countries and from thePRC.

Visa and permit issues involve matters ofnational security. Western countries are nowtightening their entry regulations in response tointernational terrorism. Consequently, it is notreasonable to assume that these issues can beresolved through tourism advocacy. For years TWGhas failed to make much headway on visa issuesdespite their stated intentions. Priority should begiven to the provision of better information andimprovements in processing of applications. Arecent BIMST-EC report on existing visa and entryformalities concluded that visas are

Table 20: Current Visa Requirements for Travel in SASEC Countries

From / To Bangladesh Bhutan India Nepal

Bangladesh — Gratis Gratis Gratis

Bhutan Gratis — Not needed Gratis

India Gratis Not needed — Not needed

Nepal $22 $30 Not needed —

Non-SAARC countries Reciprocal $20 Various $30 to $50

SAARC = South Asia Association for Regional Cooperation, SASEC = South Asia Subregional Economic Cooperation.

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…necessary for safety, social and political reasons as wellas immigration control. As such, it is not so much visarequirements that are the impediments. The problems liein the availability of information about visas, the ease ofissuance and the speed at which they are processed.

SASEC should be guided by this conclusion.The dissemination of accurate information by thetravel trade and on official websites is critical toclarify the mysteries of SASEC travel processes.

The recent growth of regional and privateairlines throughout the subregion is starting toaddress air access and connectivity constraints. Thisimprovement needs to be matched byimprovements in visitor facilities and services.Specifically, major improvements in waysideamenities for road travel are required in allcountries. There are infrastructure problems atborder crossings, compounded by surly officials andtortuous border processes. There is widespreadperception that intra-regional visitors may besubjected to rudeness from taxi drivers,shopkeepers, and airport staff. Visitor informationis lacking in all countries.

Concern about these impediments iswidespread in the SASEC tourism industry. Solutionswill not be found easily. A long-term program ofaction to gradually reduce impediments, removebarriers and improve connectivity between SASECcountries is required to coincide withimprovements in destination marketing.

In summary, the major common constraints totourism growth in the SASEC subregion include:

(i) issues of security and safety,(ii) weaknesses in tourism infrastructure,(iii) deficiencies in tourist information and

services, especially at borders, and(iv) the complexities of border formalities,

including those for visas and permits.

2.2.2.2.2. Issues and Constraints in BangladeshIssues and Constraints in BangladeshIssues and Constraints in BangladeshIssues and Constraints in BangladeshIssues and Constraints in Bangladesh

The tourism industry in Bangladesh faces anumber of constraints and problems, both nationaland international. A fundamental constraint on theindustry has been the lack of interest in tourismshown by policy makers. Historically, priorityattention has gone to other sectors, and tourismlargely has been ignored. Another of the industry’smost substantial obstacles is that Bangladesh isoften projected in foreign media as a country of onlyfloods and cyclones. Even the normal floodsnecessary for the country’s agricultural sectorgenerate negative publicity. This poor national imagepresented by the media affects adverselyinternational tourism. The problem is compoundedby the inadequacy of international promotionalactivities, resulting in poor awareness ofBangladesh’s tourist products.

Visitor services in Bangladesh are alsoinadequate. The lack of information for tourists,especially about lesser-known ecotourism andBuddhist circuit attractions, is but one example.Wayside amenities on the main highways arelacking and urgently required, and infrastructure isinadequate in many other areas. While the road andairport network is not excellent, it is adequate tofacilitate tourism movement. Accommodation andtransportation facilities for foreign tourists,however, are inadequate. Infrastructure at theborder posts used by tourists is very weak andseriously inadequate.

In 2003 the issuing of visas upon arrival washalted, thus stopping many international touristsfrom visiting the country. Further, the visaprocessing at Bangladesh missions abroad isexpensive and often not tourist-friendly. Strictborder and airport immigration and customsformalities hamper the tourist industry. There is a

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shortage of skilled personnel throughout thetourism sector, in part due to the lack of adequatetraining facilities. Training is urgently needed forofficials at border posts.

3.3.3.3.3. Issues and Constraints in BhutanIssues and Constraints in BhutanIssues and Constraints in BhutanIssues and Constraints in BhutanIssues and Constraints in Bhutan

The Government of Bhutan is concerned thatlarge numbers of visitors entering the country couldadversely impact Bhutan’s unique and delicatecultural heritage. Environmental conservation isanother concern. The current low volume of touristsreflects the high daily fee and government policy ofencouraging high value, low impact styles of tourism.Backpacking styles of tourism are not desired. Thetourism market is highly seasonal, contributing tolow hotel occupancy rates (20%, on average), poorearnings, and modest standards of facilities, servicesand amenities. Bhutan has an unfocused destinationbranding, much of it created by travel agents outsideBhutan rather being the result of a cohesive strategy.A destination marketing and branding exercise isrequired to take charge of creating the desireddestination image.

Poor air services and the poor state of the roadnetwork compound difficulties of access. Bagdograin West Bengal, India has been identified as apotential international hub for the region that couldservice Bhutan, northern Bangladesh, and easternNepal, as well as serving as a gateway for North EastIndia. Upgrading Bagdogra Airport to internationalstatus would also provide the opportunity forBhutan’s Druk Air to go regional and utilizeincreased seat capacity when its two new Airbus319s arrive in late 2004.

European, North American, Japanese, andother foreign tourists are required to pay in advance$200 per day for their visits ($165 per day in the offseason). Of this amount, $55 accrues to theGovernment in the form of a royalty. Apart fromvisitors from India and Bangladesh, who may enterfreely and are not recorded as tourists, visas forvisitors from other countries are issued only inconnection with packaged tours.

Security problems at the border with Indiahave restricted access to parts of southern Bhutan.Tourism marketing is weak. ABTO and the privatesector lack resources, and the Government generallyplays a passive role. Visitor services are inadequate.

There is a lack of modern health services and generalemergency provisions. Telecommunications servicesare weak and credit cards are not in general use,limiting bookings on the Internet.

Another constraint to growth of the sector hasbeen Bhutan’s conservative foreign investmentpolicy. In 2001, however, the Government allowedfor the first time two international hotel chains toinvest in Bhutan with majority (60%) share holdings.This signals a more open policy to foreigninvestment as well as continued support for high-end tourism policy. Both hotel chains will offer high-cost ($700-plus per night), high-quality service infacilities located across the country. Legislationnecessary to create an environment conducive toinvestment is lacking. Contradictions in tourismpolicy discourage investment in tourism. Anexample of this is the moratorium on constructionof new hotels and guesthouses recently imposed inThimphu and Paro.

4.4.4.4.4. Issues and Constraints in IndiaIssues and Constraints in IndiaIssues and Constraints in IndiaIssues and Constraints in IndiaIssues and Constraints in India

The government has been slow in giving priority to thesector. Tourism products are poorly maintained and thereis concern about safety and security. Further, theinfrastructure is weak and taxation of the industry is high.Until the “Incredible India” campaign, marketing andinformation were inadequate. Exit surveys indicate thattourists rate facilities as [sic] average or poor.6

National Tourism Policy summarizes the mainconstraints as low government priority—recently

6 The Indian Express. 2004. 7 January.

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(redressed to some extent)—the poor quality ofenvironment around products, the quality offacilities and services such as roads and hotels, andsecurity, safety, and health concerns. In a recentsurvey of 200 countries, WTTC found that India isnot among the most competitive touristdestinations in terms of price, openness,infrastructure, technology, human resources, andsocial development. In fact, India does not competewith such countries as Laos PDR, Gambia, the PRCor Indonesia in terms of price due to the lack oflow-priced, good-quality rooms.

In quality of infrastructure, WTTC ranked India89th worldwide, significantly behind leaders likeAustralia, Sweden, and Canada. A great deal needsto be done to improve tourism infrastructure. Anexample is tourist road travel in India, where thereare three main difficulties: low quality drivingexperience, lack of wayside amenities, and lack offacilities for tourists at borders. Other areas ofconcern highlighted in the survey were visa

requirements, taxes on international trade, and theimpact of tourism on human development.

India’s Tenth Plan admits that initiatives takenby the state have so far failed to yield the desiredresults. India’s share of international tourist arrivalsis only 0.38%. Training capacity in the hospitalityand travel sectors remains inadequate to meet theHRD needs created by increased tourist arrivals, andpublic awareness of the benefits of tourismcontinues to be inadequate.

Air connections between attractions areimproving, but remain a constraint. While statecapitals are connected, tourist destinations areoften very difficult to access quickly. While someparts of the Buddhist Circuit may be accessed viaGaya Airport, for example, onward air links to otherparts of the Circuit are limited.

Tapping the vast tourism potential in India’sNorth East region and reversing current negativetrends is dependent on enhanced relationships withthe mainstream Indian travel industry. Rulesgoverning the Protected Area Permit (PAP) need tobe better understood by the travel industry, and theprocess needs to be liberalized in order to attractmore than the current low level of internationalvisitors to the eight states of the North East.

Attempts are underway to rationalize, at bothcentral and state level, all of the legislation andregulations relating to tourism, environment, forest,ecology, and wildlife. It is reported that there are asmany as 70 of these at the Center, manypromulgated before independence. Tourismoperators report that the complexity of thelegislation is a constraint to development.

Improved travel connections are vital toattracting international visitors and to realizing thehuge potential for domestic tourism, an estimated2.1 million visitors in 2003. Under the new industrialpackage for the North East, the Government hassanctioned eight road and bridge projects under theNorth East Council with a total outlay equivalentto over $57 million. It has also cleared constructionand extension of existing highways, covering a totalof 1,962 kilometers. A sum equivalent to more than$22 million has been earmarked for these highways.A follow-up equivalent to over $2.2 billion,dedicated to socio-economic development of theNorth East and Sikkim, was announced in 2000.

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5.5.5.5.5. Issues and Constraints in NepalIssues and Constraints in NepalIssues and Constraints in NepalIssues and Constraints in NepalIssues and Constraints in Nepal

Security concerns are the main constraint toexpanding the tourism industry in Nepal. The Maoistinsurgency, the Palace incident, and subsequentpolitical upheavals have generated an unfavorableimage for Nepal, even though tourists have neverbeen targeted in the conflict. Many governmentshave issued advisories recommending theirnationals to avoid travel to the country. Strikes anddemonstrations disturb visitors’ movement. High-end travel to Nepal has declined, with the result thatrevenue from tourism has fallen in the face of therecent strong recovery in tourism numbers. Tourismactivity in Nepal is now limited by the securitysituation to the traditional circuits of Kathmandu,Pokhara, Lumbini, and the protected areas ofChitwan, Sagarmatha, and Annapurna. New trekkingroutes and cultural and Buddhist circuits need to bedeveloped to diversify the product and attract newmarket segments and repeat visitors.

Kathmandu has become a major air hub ofSouth Asian tourism and a gateway to Lhasa andBhutan. Despite recent political uncertainties,Kathmandu hosts many regional headquarters, suchas ICIMOD, UNICEF, and SAARC. With direct airaccess from Pakistan, the Middle East, Europe, andJapan, Nepal’s liberal open skies policy is likely tocontribute further to consolidating its regionalposition. Nepal’s poor aviation safety record,however, has raised the concern of the travelingpublic and the tourism industry.

The weakness of the national carrier, RoyalNepal Airlines (RNAC), has hampered the tourismindustry. At present, 12 international airlines connectKathmandu to 22 cities from Amsterdam to Osakawith 88 flights and 18,619 seats weekly. Thisrepresents a decline from 15 airlines connecting 26cities with 91 flights and 18,914 seats in June 2000.Nepal currently holds air agreements with 33countries. A 20% rebate on landing fees atKathmandu’s international airport (30% at domesticairports) was announced in 2003 to attract moreflights. PIA resumed services from Karachi in January2004, Qatar and Gulf Air increased flight frequencies,and Thai International expanded its daily capacitywith larger aircraft. Air Sahara from India and threeNepali airlines (Necon Air, Shangri-la and CosmicAir) are planning regional routes.

The limited national road network has placedheavy dependence on air transport for visits toNepal’s interior. Currently seven airlines provideregular domestic service to 32 of Nepal’s 45 airports,and helicopters service over 125 airstrips in theremote mountain regions of the Himalaya. Low faresto rural airstrips undermine airline viability in someareas. The majority of regional visitors uses surfacetransport, but is constrained by poor road conditionsand disorganized border facilities. Driving a vehiclecross-border requires special permits from Nepaland India. Tourism operators report that thisconstraint discourages them from packaging andselling Nepal-India cross-border itineraries, such asextending the Footsteps of the Lord Buddha circuitto Kathmandu.

Other constraints include under-resourcedmarketing and promotion, weak infrastructure(airports, roads, hospitals, and communications),pollution in Kathmandu, environ-mentaldegradation, the high level of illiteracy, and the poorquality of services. HRD is needed to enhance qualityand competitiveness. Seasonality is still a problem,with severe under-utilization of hotels during theJune to September monsoon period.

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STRATEGIES FOR SUBREGIONAL COOPERATION IN TOURISM

STRATEGIES FORSUBREGIONALCOOPERATION

IN TOURISM

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A. Previous Decisions of TWG

The strategic decisions made by TWG at itsthird meeting in New Delhi on 30–31 July 2003 areoutlined below.

On the need for a SASEC Tourism DevelopmentPlan, TWG agreed that:

• Project proposals need to be integrated into asubregional plan.

• Stand-alone tourism projects should beincluded in country programs, while projectsthat involve subregional cooperation should beconsidered under the SASEC program.

• A masterplan is not needed. Any furtherplanning should build on existing masterplansavailable within each country.

• Planning should identify and develop bankableprojects and sources of funding.

• The planning exercise should result in aroadmap and timeframe for implementation.Consideration should also be given to adevelopment finance facility/fund to fosterprivate sector participation in SASEC tourisminitiatives.

• The resulting plan should

(i) build on previous TWG reports,(ii) integrate existing national and state plans

and priorities,(iii) establish a thematic framework for future

development,(iv) help set the TWG agenda,(v) outline an implementation program, and(vi) present an action plan for promoting

subregional tourism in South Asia.

On the basic strategic objectives for subregionalcooperation in tourism, TWG agreed they should

• develop a cooperative spirit among the tourismindustries of the subregion,

• contribute to sustainable economic growth,• use ecotourism as a tool to reduce poverty,• generate employment opportunities, and• facilitate private sector investment in tourism.

On marketing themes, TWG agreed:

• The previous theme of “Experiencing andDiscovering Spirituality of SASEC Subregion”theme could be misunderstood.

• NTOs should cooperate to developcomplementary products, and focus on theneed to offer different experiences to potentialtourists.

• There is a need to identify unique anddifferentiated products (“only in South Asia”).

• Subregional tourism development planningshould start with two common programs:

(i) Ecotourism based on Natural and CulturalHeritage, and

(ii) Buddhist Circuits.

• SASEC is not appropriate as a “brand”, and“South Asia” (or other appropriate names) willbe used instead. While the initial effort willbe confined to four countries under theSASEC program, other countries in SouthAsia (for example, Sri Lanka) may be includedat a later date.

On target markets, TWG agreed that

• long-haul markets should be kept in mind forthe long-run,

• development of essentially the sameinfrastructure will be needed for both short-haul and long-haul tourism markets,

• a blend of numbers and yield targets is needed,• growing economies are in the short-haul

markets, with easier access and betterconnectivity, and

• branding is an important aspect of targeting.

On overall priorities for tourism developmentprojects, TWG agreed they should

• improve access and facilitate travel by air, road,rail, and river,

• pursue joint destination marketing,• stimulate new product development,• build on previous successful projects, and• mobilize resources for implementation.

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Resources from the private sector will be a keyfactor, and efforts should be made to work withother partners, such as NGOs.

On the need for a regional tourism forum similarto the Mekong Tourism Forum, TWG agreed that:

• To be successful, such a forum needs to haveregular participation by all governments andNTOs at a high level, by key players in thetourism industry, and by international buyers.

• Alternatives should be considered, such asindustry and media links through an eventassociated with each TWG meeting. SASECcould be presented at international travel tradeevents. Initially, associating with an existingevent could do this.

On the need for a SASEC secretariat, TWG agreed:

• A SASEC secretariat should not be perceivedas competing with the SAARC secretariat.Instead, a beginning should be made by

(i) using joint marketing initiatives, with Indiain the lead,

(ii) identifying other activities needingcoordination,

(iii) identifying a nodal person in each countryfor coordination,

(iv) seeking financial authority for annualcontributions as needs grow, and

(v) using the proposed ADB-financed TA tosupport coordination.

B. Core Strategic Directions

After listening to the Planning Team’s analysisand recommendations at its fourth meeting inBhutan on 26 May 2004, TWG adopted the followingfour catchwords to express its immediate strategicapproach.

CONVERGENCE. TWG will operate by findingconvergence of interests among stakeholders ratherthan by imposing a subregional agenda.

CONNECTIVITY. TWG will be an advocate betterconnectivity between SASEC countries as a meansto foster tourism linkages.

COORDINATION. TWG will advocate partnershipsbetween the public and private sectors of thesubregion’s tourism industries as a means tocoordinate tourism development.

CONSERVATION. TWG will ensure conservation ofthe authenticity of the natural and culturalresources on which tourism is based.

The sources of ideas for the subregionalprograms and projects contained in the SASECTourism Development Framework (Section V) were(i) the previous decisions of TWG listed above, (ii)the results of the national and subregionalworkshops, (iii) the Planning Team’s analysis ofcommon elements in the four tourism developmentagendas, as summarized above, and (iv) thePlanning Team’s macro-view assessment of theSASEC tourism sector’s needs.

It is in the nature of subregional cooperationthat a rigid structure of overall goals and objectivesis not appropriate. Tourism sector goals and theobjectives of the individual countries should takesupremacy. TWG must be free, at each meeting ifnecessary, to find a new consensus among

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participating countries. Only at the project levelshould goals and objectives be fixed.

Nevertheless, it will be an advantage if TWGevolves over time a firm sense of collective strategicdirections. To assist this process, the initial projectsin the Framework are grouped into programs. Theseprograms are envisaged as long-lasting strategicthrusts. Whereas individual projects will beconceived, implemented, and completed, theprograms will go on.

C. Broad Strategies

Underpinning the selection of programs aresome broad strategies that evolved out of thePlanning Team’s analysis of individual countryagendas. They are suggested as common threadson which to base TWG programs that explain therationale for the SASEC Tourism DevelopmentFramework. It is envisaged that TWG will regularlyrevisit and fine-tune these statements.

1.1.1.1.1. SASEC TSASEC TSASEC TSASEC TSASEC Tourism should be Sustainable andourism should be Sustainable andourism should be Sustainable andourism should be Sustainable andourism should be Sustainable andContribute to the Reduction of PContribute to the Reduction of PContribute to the Reduction of PContribute to the Reduction of PContribute to the Reduction of Povertyovertyovertyovertyoverty

This is a foundation strategy that all SASECcountries share. TWG’s primary challenge is todevelop and implement subregional projects thatwill promote tourism growth, while at the same timeensuring pro-poor results and meeting the criteriaof sustainability. In this regard, TWG will beconscious of the styles of tourism that it promotes.In the first instance, ecotourism based on naturaland cultural heritage and tourism based onBuddhist Circuits are appropriately pro-poorfocused, and can be sustainable if well managed.

2.2.2.2.2. Branding should focus on SASEC’Branding should focus on SASEC’Branding should focus on SASEC’Branding should focus on SASEC’Branding should focus on SASEC’sssssProducts and not on the Subregion ItselfProducts and not on the Subregion ItselfProducts and not on the Subregion ItselfProducts and not on the Subregion ItselfProducts and not on the Subregion Itself

This strategy is supported by all four countries.There is strong agreement that joint marketingshould focus initially on two product themes:Ecotourism based on Natural and CulturalHeritage, and Buddhist Circuits. SASEC programsbased on these product themes should be

integrated, in the sense that marketing and productdevelopment is linked and combined. Otherproduct themes may be added in future.

3.3.3.3.3. Joint Marketing will be Initiated beforeJoint Marketing will be Initiated beforeJoint Marketing will be Initiated beforeJoint Marketing will be Initiated beforeJoint Marketing will be Initiated beforeIntroducing Measures to Ensure ProductIntroducing Measures to Ensure ProductIntroducing Measures to Ensure ProductIntroducing Measures to Ensure ProductIntroducing Measures to Ensure ProductQualityQualityQualityQualityQuality

There is broad agreement to first initiatingjoint marketing activities before seeking consensuson product quality. A mutual concern for productquality will evolve naturally once the four countriesstart joint marketing. Work on subregional productquality control measures, such as codes of conductand subregional tourism development guidelines,should start immediately, but implementationshould follow rather than lead joint marketing.

4.4.4.4.4. Reposition the Subregion as a TReposition the Subregion as a TReposition the Subregion as a TReposition the Subregion as a TReposition the Subregion as a Tourist-ourist-ourist-ourist-ourist-Friendly DestinationFriendly DestinationFriendly DestinationFriendly DestinationFriendly Destination

There is a widespread concern that touristsource markets perceive SASEC as a “difficult”destination, and this impression needs to beovercome if tourism is to grow. In addition tomarketing programs promoting SASEC’s productsto niche markets, other programs should aim atfacilitating travel through such means asstreamlining and simplifying visa and other borderprocedures, improving general security andtransport safety, and improving public tourismservices—such as customs, immigration, andtourist information services.

5.5.5.5.5. Facilitate the Development ofFacilitate the Development ofFacilitate the Development ofFacilitate the Development ofFacilitate the Development ofa more Competitive Ta more Competitive Ta more Competitive Ta more Competitive Ta more Competitive Tourism Industryourism Industryourism Industryourism Industryourism Industry

The individual tourism industries of the fourcountries must become more internationallycompetitive. TWG should work to raise tourismindustry standards in the subregion. This can beachieved through human resource development inthe industry and in associated public services.Fostering private-public sector cooperation,reforming tourism regulations, and facilitatingtechnology transfer through associations withforeign operators will also help. Encouraginginvestment, including foreign direct investment, is

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essential in this regard, as are facilitating dialoguebetween tourism and other sectors, improvingbanking and credit card services, and enabling “online” booking through the Internet.

6.6.6.6.6. Improve TImprove TImprove TImprove TImprove Tourism Links with Neighboringourism Links with Neighboringourism Links with Neighboringourism Links with Neighboringourism Links with NeighboringCountriesCountriesCountriesCountriesCountries

There is widespread enthusiasm for intra-regional tourism, particularly in light of recentmajor fluctuations in inter-regional markets. TWGprograms should emphasize intra-regional tourismby building on flows from growing regional markets(e.g. India, Thailand, and the PRC), and throughcooperation to improve regional informationflows. Increasing the number and status ofinternational border crossings, developingnetworks to identify best practices, promotingcross-border packages, and linking infrastructureplanning with tourism development (e.g. roadamenities, view points) will also contribute toexpansion of intra-regional tourism.

D. Additional Principles

The programs and projects included in theSASEC Tourism Development Framework set TWGon a course to follow the strategic directionsoutlined above. Over time TWG will develop andclarify these strategic directions.

TWG will be open to the introduction of newprojects by interested stakeholders. Appendix 5contains an example format for submitting projectideas to TWG. The primary criterion for accepting aproject idea will be adherence to the strategicdirections outlined above. TWG will regularlyupdate its SASEC Tourism DevelopmentFramework, integrating selected new projects.

Several other criteria are needed to facilitatethe TWG process for selecting projects. Thefollowing criteria, based on procedures adopted bysubregional groupings elsewhere, are suggested.Once again, TWG should adjust these criteria asthey see appropriate.

(i) SASEC tourism projects should benefittwo or more member countries (the “twoplus” criterion).

(ii) Consensus should apply, or there shouldbe at least a no objection agreement fromall countries.

(iii) Community participation should shape allarea-based projects and contribute to theimplementation process.

(iv) Projects should contribute to culturalunderstanding and harmonious relationsamong SASEC countries.

(v) Projects should emphasize practical pro-poor results and sustainability.

(vi) Projects should make maximum use ofnational tourism-related infrastructure(e.g. roads, airports, etc.).

(vii) Financing of tourism-related subregionalinfrastructure investments should bebased on the share of benefits, and notsimply on national costs. .

(viii) Tourism projects should be fully integratedwith subregional initiatives in othersectors, especially transportation andenvironment.

(ix) Subregional tourism projects should beconsistent with SAARC goals andobjectives.

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SASEC TOURISMDEVELOPMENT

FRAMEWORK

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SASEC TOURISM DEVELOPMENT FRAMEWORK

A. Structure of the Framework

The programs of the Tourism DevelopmentFramework are divided into four categories. Thistiered structure has been devised to make thenature and focus of each program as clear aspossible.

1.1.1.1.1. Generic ProgramsGeneric ProgramsGeneric ProgramsGeneric ProgramsGeneric Programs

Generic, or crosscutting, programs are basedon common, ongoing elements in the tourismdevelopment agendas of the four countries. Theyprovide the essential rationale for ongoingsubregional cooperation in the medium to longterm.

Program 1: Coordinated Marketing. While mostmarketing activities will continue to be undertakenby the individual NTOs, developing a routine ofcoordinated marketing is in the interests of all fourcountries. In some instances, coordinatedmarketing will extend to joint marketing on agreedcommon themes. Initially, the focus will be onpromoting ecotourism and Buddhist circuits, andfostering intra-regional travel.

Program 2: Enhancing Product Quality. Once the fourNTOs start marketing together, a naturalconsequence will be stronger common interest ineach other’s product quality. Such interest is notyet strong. This program should evolve over time asmutual trust and confidence grows.

Program 3: Facilitating Travel. All NTOs and nationaltourism industries see value in subregional effortsto facilitate cross-border tourist travel. There is alsoagreement that a subregional approach to cross-border issues will complement bilateralapproaches. Few border issues are under theimmediate mandate of the NTOs. One drivingrationale of this program will be that NTOs shouldcollaborate to develop means of convincing othergovernment agencies to act on cross-border issuesimportant to tourism. All programs will build onSAARC’s initiatives in this regard.

Program 4: Developing Human Resources. The lessonfrom past experience is that subregional supportfor national level training is likely to be moresuccessful than seeking to enforce subregionaltraining standards and curricula. Tourism traininginstitutions in all four countries, both public andprivate, have expressed the need for developmentassistance. Training for non-tourism personnelwho are on the front line dealing with visitors isalso important.

2.2.2.2.2. Programs Focused on Product Programs Focused on Product Programs Focused on Product Programs Focused on Product Programs Focused on Product

These are programs for the medium term.They will include projects designed to enhanceexisting cross-border tourism products or developnew products. They will be integrated, in that theywill link marketing with product development.Initial projects are based on the TWG themes ofecotourism and Buddhist circuits. Later, otherthemes may be added. Joint efforts on product-focused development planning for the two initialthemes will provide frameworks for thedevelopment of national projects. These programswill support and further enable private sectoroperators who have been packaging and sellingcombinations of SASEC countries for decades. Theprograms will balance response to market demandwith recognition of the need for careful resourcemanagement and involvement of local people intourism benefits to ensure long-termsustainability.

Program 5: Developing Ecotourism based on Nature andCulture. Marketing and product quality are keyelements in the rationale for a medium-term,integrated program to develop ecotourism basedon nature and culture. Three integrated (i.e.marketing coupled with product development)planning projects are envisaged, based on sub-divisions of the main theme. If successful, thesewill proceed into phased implementation. Animportant component of this program isadvancing professional standards in ecotourism inSouth Asia, with the aim of making leadership inthis field into a comparative advantage.

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Program 6: Developing Buddhist Circuits. Marketing andproduct quality are also key elements in therationale for a medium-term, integrated programto develop Buddhist circuits. Three integrated (i.e.marketing coupled with product development)planning projects are envisaged here also, againbased on sub-divisions of the main theme. Theprogram builds on the strong interest in Buddhistcircuits in source markets and the marketingmomentum of individual NTOs. The sub-themesrecognize the different types of Buddhist pilgrimswho are attracted to the region, and the projectsseek to expand the current markets and attract newmarket segments in the future.

3.3.3.3.3. Programs Focused on thePrograms Focused on thePrograms Focused on thePrograms Focused on thePrograms Focused on thePrivate SectorPrivate SectorPrivate SectorPrivate SectorPrivate Sector

The private sector propels the tourism sectorand must be central to subregional cooperation.There are consequently two main thrusts to thisprogram: first, enabling the private sector, andsecond, fostering public-private partnership. Projectsin this program will be designed to foster the privatesector as a means of promoting growth in tourism.In the early stages, projects will be aimed at activelyengaging the private sector with TWG.

Program 7: Enabling the Private Sector. This program willaim to overcome barriers to private sectorparticipation in tourism. While an early conclusionis that the subregion is not overly constrained bylack of financing, establishment of a Tourism

Development Fund is suggested as a means oftargeting assistance to the private sector for therapidly expanding rural tourism associated withecotourism and Buddhist circuits. A secondelement of the program will be fostering public-private partnerships in the marketing anddevelopment of SASEC tourism.

4.4.4.4.4. National Projects in K National Projects in K National Projects in K National Projects in K National Projects in Key Areasey Areasey Areasey Areasey Areas

The need is emerging for combining andcoordinating national projects. For this reason, theSASEC Tourism Development Plan outlinesnational project ideas listed under Key Areaheadings. TWG will maintain an active interest inthe development of Key Areas. While most tourismdevelopment projects in Key Areas will beimplemented on a national basis, TWG will fromtime to time initiate joint (bilateral or multilateral)projects aimed at promoting coordinated tourismplanning.

Program 8: Key Areas. Key Areas are conceived as focalareas for tourism sector development arising fromTWG programs fostering subregional growth intourism. Key Areas must overlap at least twocountries of SASEC. The Key Areas approach hasstrong support in all four countries. The selectedKey Areas have been identified as having cross-border elements and tourism potential ofsubregional significance, especially for ecotourismand Buddhist circuit products. Development insome Key Areas is feasible now. For others, radical

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changes in security, access, and permit procedureswill be required. TWG will maintain a simpletourism development concept plan for each KeyArea and will guide and monitor nationaldevelopments in these areas.

B. Generic Programs

1. Program 11. Program 11. Program 11. Program 11. Program 1

Coordinated Marketing

Project 1.1. Joint Marketing to Brand andPromote Ecotourism and BuddhistCircuits

Rationale

Joint marketing presents the strongestrationale for subregional cooperation in tourism.The desire to brand and promote ecotourism andBuddhist circuit products is shared among all fourNTOs. While most marketing activities willcontinue to be undertaken by the individual NTOsin accordance with national strategies, it is widelyaccepted that joint marketing on these two productthemes will produce a whole greater than the sumof the parts. Accurate positioning and a strong

brand identity for these product themes will makea significant contribution to subregional tourismgrowth. Providing accurate information to the worldtravel industry will help overcome security concernsin the market place.

Branding and promotion will focus on the twoproduct themes and not on the subregion itself.Wherever a locator is necessary, “South Asia” or“Eastern Himalaya” will be used rather than“SASEC”, thus complementing other regionalinitiatives, e.g. those of SAARC. Branding andpromotion will be aimed at increasing awarenessin the regional and world travel industries of theecotourism and Buddhist circuit attractions of thesubregion. Marketing activities will brand thesubregion as a premier Ecotourism Pioneer andBuddhist Heartland destination. Individual NTO’sbranding strategies and tourism developmentvalues will be taken into consideration, ensuringthat the subregional positioning will complementnational approaches. Buddhist target marketsegments will recognize the difference between theTheravada, Myanmar, and Mahayana sects.

Scope

The four NTOs will contribute to a SASECTourism Marketing Fund, which will be used tosupport a joint marketing campaign on the twoproduct themes. The campaign will aim at thetourism industry associated with both inter- andintra-regional travel to SASEC. Internationalagencies associated with tourism development

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projects will be asked to assist the Fund as ameans of increasing tourism demand in all ofSASEC. Industry partners will be sought forelements of the campaign, and the subregion’sleading tourism marketing agencies will be invitedto contribute.

In style, the campaign will echo the“Incredible India” campaign and capitalize on thatcampaign’s marketing muscle. FICCI has agreed toassist by renaming its proposed “DestinationSAARC” conference, scheduled for September2004, as “Destination South Asia,” and byproviding a platform at the conference for thecampaign launch. Follow-up promotions will befocused on SATTE. The essential strategy will beto reach target industry segments through theestablished international tour operator networksof the NTOs, and through their representativeoffices in source markets. Targets are likely to beelements of the travel industry in source marketsof priority to all SASEC countries that influencetravel patterns in high-yield, special interestmarkets both in and outside the region, as well asthose of persons of South Asian origin notresident in the region.

Each NTO will select destinations andproducts to be depicted. India will coordinate thecreative elements, including photography andcompilation of images. A range of internet-basedcollateral material will be produced and distributedvia a well promoted website. Other collateralsuitable for trade shows and market seminars alsowill be produced, such as promotional brochures,posters, and CD ROMs. Logos will be designed. Sixsub-themes will be recognized:

(i) Trekking in the Himalaya.(ii) Tourism in Ganga-Brahmaputra (especially

culture and wildlife).(iii) Adventure Tourism in South Asia.(iv) Footsteps of Lord Buddha.(v) Living Buddhism in the Himalaya.(vi) Buddhist Art and Archaeology in South

Asia.

The four NTOs will be given opportunity toapprove all campaign concepts.

Benefits and Impacts

Through the economies of scale of jointmarketing, South Asia will be positioned as anecotourism and Buddhist circuit destination in bothinter- and intra-regional markets. Destinationawareness of the subregion will be improved,resulting in increased demand and tourism growthgenerating employment, investment, and otherbenefits to rural areas. Increased regional traffic willhelp cushion downturns in long-haul arrivals.Greater demand will focus private sector attentionon enhancing existing products and investing innew products. Unique aspects and individualdifferences in each country will be emphasized. Carewill be required to avoid mismatches between thebrand images and the realities of deliverableproducts; this will generate mutual concern aboutproduct standards. Potential negative impacts willinclude the perception that tourism uses culture asa commodity.

Success in this project will develop and sustainownership of subregional cooperation in tourismby the participating NTOs. Using the “IncredibleIndia” quality and style will reinforce its success,strengthen the subregional product image, and addvalue to the campaign from India’s perspective.Individual NTOs will each undertake monitoringand evaluation of the SASEC marketing activities,reporting results at each TWG meeting. In addition,market research will be commissioned after 5 yearsto gauge the penetration of brand awareness withinthe industry, to assess the impact of the campaignon subregional tourist flows, and to re-evaluatesubregional target markets.

Estimated Cost

The estimated project cost is as high as $5million. At least $100,000 will be required for theSASEC Tourism Marketing Fund in order to start thecampaign. It is expected that an initial contributionof $10,000 will be made by each NTO.

Financing Arrangements

The NTOs have each appointed a NodalPerson to take responsibility for implementation ofthis project. Subject to budget confirmation, all

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NTOs have also agreed to make a one-timecontribution of $10,000 to establish the SASECTourism Marketing Fund. The assistance ofdevelopment partners, industry partners, and theindustry will be sought to start the campaign. TheGovernment of India has agreed to assist with theinitial production of collateral material byunderwriting any shortfall between contributions tothe Fund and actual production cost.

TWG subsequently will arrive at a formula formodest, proportional, annual contributions to theSASEC Tourism Marketing Fund. The formula maytake into account relative promotional budgets,visitor numbers, and the range of products in eachcountry. In addition, a SASEC Marketing Alliance ofdevelopment and industry partners will beestablished, consisting of organizations willing tosupport efforts to heighten demand for tourism inthe subregion. Potential SASEC Marketing Alliancemembers include JBIC, ADB, PATA, SATTE, andFICCI. Airlines and other large private sectortourism operators together with one or moreselected advertising agencies are also seen aspotential members. Some Alliance members maycontribute in kind, others through funding fordedicated purposes.

Implementation Arrangements

At the fourth meeting of TWG in May 2004,NTOs agreed that India will take the lead in theimplementation of this project. Initial NTOcontributions to the Fund will be confirmed by 30June 2004 and transferred to DOT India soon after.NTOs have each appointed a Nodal Person tocollect content for the six themes, including writtendescriptions and high quality images and footage.ADB was asked to assist in the collection andintegration of content. The deadline for the initialcollection of content is 30 June 2004. DOT India willcoordinate and commission the creative work,including the production of collateral material,involving the Nodal Persons in all key decisions. Thecampaign will be launched at FICCI’s DestinationSouth Asia event in September 2004. Follow-uppromotions will occur at SATTE in March 2005 andat other marketing events in the subregion whereregional and international buyers are gathered. DOTIndia will co-ordinate other promotional activities,

including reaching out to the international industrythrough the international tour operator networksof SASEC NTOs and SASEC country representativeoffices in source markets.

Project 1.2. Regional Marketing with SATTE

Rationale

Rather than forming a Tourism Forum as ameans for industry networking, as occurred in GMS,there is an opportunity in SASEC to build onrelatively strong existing subregional industrynetworks and networking events. Established 10years ago, SATTE is a substantial event and mart forshowcasing the regional industry. Its organizerssupport further regionalization of the event.

At the fourth meeting of TWG in May 2004,NTOs agreed that SATTE is an appropriate venue toreach SASEC’s target intra-regional markets throughthe promotion of SASEC product brands to theregional tourism industry. SATTE could also be usedas a platform to reach non-resident South Asians;as previously mentioned, PIOs alone are estimatedto number about 22 million. After the SAARCIslamabad Declaration, the timing is right forSASEC tourism to capitalize on the current wave ofcooperation and feelings of pride about SouthAsian identity. The objective of this project is to planand implement a marketing campaign that willestablish the identites of key SASEC products,themes, and brands at future SATTE eventsthroughout the subregion.

Scope

Regional marketing of Bhutan, Bangladesh,India, and Nepal (BBIN) ecotourism and Buddhistcircuit products will be undertaken at SATTE. Thiswill be accomplished through an alliance of SATTEMarketing Committees, one in each countryconvened by the NTO and comprising public-private partners. SATTE organizers will consult withthese Marketing Committees and assist inpreparing a marketing strategy focused on anannual SASEC presence at SATTE. NTOs andnational industries will provide in-kind support forintra-regional marketing activities, such as

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promotion of ecotourism and Buddhist circuitproducts, dissemination of brand image collateral,familiarization trips for targeted media and touroperators, and a campaign to reach non-residentBBIN nationals. Once a strong working relationshiphas been established, TWG will cooperate withSATTE organizers and SATTE MarketingCommittees in a plan to rotate the site forsubsequent SATTE around the subregion.


This project will contribute to the brandidentity of SASEC’s product themes. Intra-regionalpromotion and product branding will heightendemand, increase sales, and ultimately result inemployment growth and other benefits to poor, ruralareas from tourism. Public-private partnershipprocesses and interaction will result from the SATTEMarketing Committees. Increased tourism awarenesswill engender a pride in South Asian natural andcultural attractions and an increased sense of SouthAsian identity will be achieved.

Estimated Cost

Total project cost is estimated at up to $1million, with an estimated $10,000 required forproject start up.


SATTE organizers will be askedfor advice on the level of fundingrequired and for creative ideas formobilizing funds. Marketing collateralgenerated under Project 1.1 will beavailable for promotions at SATTE.SATTE organizers will contributeexecutive expertise. Further financialand in-kind support will be generatedthrough the combined efforts of theNTOs, led by DOT India, and SATTEin persuading the subregionalindustries to participate. Eventually,SASEC participation in SATTE will beself-funding through the combinedefforts of NTOs and nationalindustries.


India will be the Project Leader. NTOs willconvene the public-private SATTE MarketingCommittees by 31 August 2004. SATTE executiveswill consult with the Marketing Committees andassist them in preparing national and subregionalmarketing strategies based on a regular SASECpresence at SATTE and including a “proud of beingSouth Asian” element. The four SATTE MarketingCommittees and SATTE organizers will jointlymobilize in-kind support and sponsorship. SASECproduct promotions will be arranged for SATTE2005 and thereafter annually. The collateralproduced under Project 1.1 will be made availableby DOT India. Post-SATTE media and touroperator familiarization trips to subregionaldestinations will be organized in cooperation withthe SATTE Marketing Committees. An MOU willbe drawn up requiring SATTE emphasis onattracting buyers for SASEC products to SATTEevents. ADB will provide a sample MOU from theMekong Tourism Forum.

Project 1.3. Harmonizing Arrival Statistics

Rationale

SASEC countries feel the need for a moreaccurate picture of international and intra-regional

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travel. Currently, intra-regional arrivals in SESACcountries are not counted in accordance with WTOnorms. One result of this is that tourism in thesubregion may be greatly undervalued. Eachcountry wishes to develop its own system to collectstatistics for intra-regional arrivals, but agree thereare merits to addressing this need on a subregionalbasis. Accurate statistics are needed to determinethe extent and measure the impacts of subregionaltourism. This will assist the development ofnational and subregional planning and marketingstrategies as well as the management of the impactsof tourism growth.

Scope

This project requires the assistance of aninternational agency. The project will involve needsassessments and the design of appropriate newstatistics gathering methods at national levels,followed by training of NTOs and other concernedagencies, possibly at the subregional level. The aimis to ensure that each country has appropriateprocedures to collect useful and accurate arrival datafor both international and intra-regional visitors, andthat the procedures are complementary across thesubregion. Another outcome of the project will be toidentify further training needs of NTO researchdepartments in SASEC countries.


Better data gathering will provide a moreaccurate picture of travel in the subregion fortourism planning, marketing, and management,and for comparison with international visitorpatterns. An incidental outcome may be a changein the world ranking of the SASEC region in termsof tourist arrivals.

Estimated Cost

The estimated cost of the project is $200,000.Financing Arrangements

WTO has offered to assist this project, subjectto the NTOs ratifying the SASEC TourismDevelopment Plan. NTOs agreed at the fourthmeeting of TWG in May 2004 to accept the WTO offer

and to seek WTO advice on funding arrangements,including possible cost-sharing options. In-kindsupport from NTOs and other government agenciesis assumed.


Bangladesh will be the Project Leader and willtake this project forward in liaison with WTO.Implementation is envisaged as a stand-alone TAproject, mobilized by WTO in cooperation with theNTOs and other concerned government agencies,using WTO expertise.

Project 1.4. Events Calendar

Rationale

Cultural events and religious festivals areestablished attractions in SASEC. From a tourismperspective, however, they are undervalued andpoorly coordinated. Effective marketing could assistNTOs and event organizers in attracting visitors,managing these events, and increasing theircontribution to local economies. Promotion ofthese events and festivals also would addressseasonality problems, common in SASEC, byextending the season’s shoulder periods.

Scope

A calendar of cultural, sporting, religious, andvillage festivals and events will be produced forSASEC. The calendar will be developed in print, as

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an illustrated fold-out brochure and map, and alsoin a form suitable for posting on websites. It will bedistributed to tour operators more than one year inadvance, as necessary for tour planning. Theprocess of developing and distributing the eventscalendar will involve public-private partnershipsand involve wider stakeholders in addition to thetourism industry.

Producing a coordinated events calendar is arelatively simple task as many calendars fornational, state, and local levels events are alreadypublished. The events calendar will be printed inbrochure form and posted on-line with links to allmajor websites of the subregion.


Distribution of the events calendar will promotenew products, help spread tourism benefits, andachieve brand awareness. The calendar will facilitatetour planning, promote tourism awareness, andextend the season’s shoulders. The public-privatepartnership approach will forge relationships. Thecalendar’s distribution will generate regional andinternational demand and thus contribute to thesustainability of the individual events. Pilgrimageand cultural tourism will be stimulated. Otherpotential benefits include fostering professionalismin event management, promoting pride in and

respect for traditional culture, and increasingsubregional understanding.

Estimated Cost

Estimated project cost is $50,000.


DOT India has undertaken to underwrite thisproject as an integral part of Project 1.1. Futurefunding for the events calendar is envisagedthrough a combination of commercial sponsorshipand in-kind support organized by NTOs andcoordinated by DOT India and SATTE.


NTOs agreed at the fourth meeting of TWG inMay 2004 that implementation of this project willbe led by DOT India, with assistance from SATTE.SATTE’s assistance will be sought on commercialaspects, including establishing commercialsponsorships on an ongoing annual basis. DOT willdevelop the event calendar based on inputs fromall NTOs, which are due on 30 June 2004. ADB willassist by approaching TWG development partnersand requesting their assistance with the calendar.Agencies such as JBIC, UNESCO, WTO, and UNDP,

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as well as other organizations with interests inculture, religion, pro-poor initiatives, communitydevelopment, and tourism, will be asked to findways to contribute to the calendar.


Enhancing Product Quality

Project 2.1. Product Standards and IndustryCodes of Conduct in Ecotourism andBuddhist Circuits

Rationale and Objectives

The product-focused branding proposed inProgram 1 requires more than merely a consistentapproach to marketing. Critically, branding mustalso involve a consistent commitment to productdelivery and product quality. While the prospect ofthe four countries joining together in a commonProduct Development Strategy is something for afuture Plan, there is immediate and commoninterest in product standards.

Individual NTOs have started to developstandards and industry codes of conduct in tourism.In the case of Nepal, the Sustainable TourismNetwork (STN) has been formed with the aim ofkeeping standards high through sharing lessons

learned, increasing cooperation and partnership,creating awareness, contributing to understanding,and encouraging best practices. Sikkim is welladvanced with codes of conduct and reports thatthe process of developing guidelines can be asimportant as the result..

As SASEC tourism industries begin marketingtogether, it will become increasingly more palatableto address the issue of product standards and codesof conduct on a subregional basis. A lesson from aprevious SAARC tourism HRD initiative is thatregional standards are not easily imposed. Rather,they need to evolve from within the industry.Nevertheless, the outcome needs to be consistent,workable, and effective product standards andindustry codes of conduct, benchmarked oninternational best practice.

The proposed Sustainable Tourism Forum(STF) (Project 5.4) will provide an ideal opportunityto promote a product standards agenda at thesubregional level. By including development andpromotion of subregional product standards as partof the fundamental rationale for the STF, the scenewill be set for an ongoing process of evolvingsubregional standards, with participation by theindividual national industries. Such a process isrequired if regional standards are to succeed. There isan immediate perceived need for benchmarking andregional guidelines. The industry generallyappreciates that in the longer term, regional standardsand regional certification programs will be possible.

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Scope

A multi-facetted project is envisaged tostimulate subregional debate on productstandards at the STF, and then capture the results.The project will steadily and systematicallyadvance the cause of unified subregionalstandards and codes of conduct. The program willaddress host and guest relationship issues and theneed to sensitize visitors so they respect theculture of host communities. Rather thanfocussing on negative examples, the project willshowcase the cultural and traditional wealth of thesubregion as a means of stressing the importanceof its preservation. Annual targets will be set andreports of progress will be made to TWG. STF willbe a major platform for communicating with theindustry.


The process of sharing lessons learned will berecognized by the industry as of immediate benefit.It will take longer for subregional approaches tostandards and industry codes of conduct to beaccepted and embraced. Acceptance will come as asubregional consciousness develops in the tourismindustries of SASEC as a by-product of jointmarketing. STF will also contribute to raisingconsciousness by creating partnerships betweenthe national industries and the NGO community.Medium-term benefits of this project will includeenhanced consumer information for prospective

visitors, coupled with improved product quality.This is expected to lead to enhanced yield andgreater consumer satisfaction. As visitors andpotential visitors become aware of the standardsand codes, it will affect their choices. Above all,this project will make a significant contribution tothe sustainability of SASEC tourism.

Estimated Cost

The estimated cost of this project is $1 million.


Development agencies active in the subregionwill be canvassed for ways to fund individualcomponents of this project. Ideally, the project willbe supported by a loose alliance of nationalindustry organizations and international NGOs(INGOs). This alliance, formed in the style of Nepal’sSTN, will come together each year to meet with TWGand to participate in STF. For the rest of the year thedevelopment partners will act independently or insmaller groupings on components of the project,with funding arranged from their own sources. Theproject will be spread over several years and themembership of the alliance will grow over time. OnUNESCO’s advice, an approach will be made to theNordik World Heritage Foundation to seek itsinterest in this project.


At the fourth meeting of TWG in May 2004,NTOs agreed that Nepal would be project Leader.NTB, with ADB’s assistance, will canvass interest inthis project among agencies associated withecotourism and concerned about standards oftourism resource management. UNESCO, ICIMOD,SNV, TMI, WWF, and ECOSS have all expressed keeninterest in involvement. ICIMOD is developing aproject of its own on ecotourism standards.UNESCO has for the past 3 years beenimplementing a major inter-sectoral project on“High Mountain Ecotourism in Central Asia and theHimalaya.” TMI, WWF and SNV are all active in thesubregion and agree in principle to cooperatingwith TWG in this project.

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Facilitating Travel

Project 3.1. Eastern Himalayan Caravan

Rationale

Based on an idea from GMS, this project willcreate an event, or series of events, featuring anoverland “caravan” of four-wheel-drive vehiclesexploring and celebrating the potential of newcross-border tourist routes. The primary objectivewill be to help NTOs illustrate the tourism potentialof the routes. A secondary objective will be to raisethe profile of Key Areas in the eyes of the region’stravel media.

Scope

Caravans of four-wheel-drive vehicles,organized by the subregion’s tourism private sector,will travel “trail-blazing” routes on existing, but notwell-traveled roads. The regional travel media willbe invited. NTOs and, in the case of India, state-level tourism authorities, will host the caravan andarrange “flag-waving” activities. One trial routeenvisaged is from Paro to Phuentsholing, Gangtok,Nathu La, Darjeeling, Pashupatinagar, Ilam,Kakarbita, Bagdogra, Siliguri, Banglabandh, Dhaka,Sylhet, Shillong, Kaziranga, Kohima, Bomdila,Tawang, and Guwahati.

While one of the aims will be to attractparticipants from the international tourism industryand travel media, the first caravans may be restrictedto South Asian participants if absolutely necessaryfor reasons of visa and border regulations.


These events will provide the subregion’sNTOs and local tourist organizations (LTOs) with asubtle means to draw the attention of concernedgovernment agencies to the tourism potential ofcross-border travel. The tourism sector willcontribute to exposing misconceptions aboutregional security. South Asia’s travel media will beexposed to some of SASEC’s “hidden” tourism

resources. Tour operators from the four countrieswill have shared a constructive, positive experience.The ultimate goal is the easing of border formalities.Although four-wheel-drive vehicles will be used, thecaravan will remain on existing roads in order toavoid negative environmental impacts.

Estimated Cost

The total estimated cost of the project is$100,000.


The project will be largely self-financing.Individual vehicles will be sponsored and/orindividual participants will pay their own way. NTOsand tour operators will combine to seeksponsorship for hosting activities.


NTOs agreed at the fourth meeting of TWG inMay 2004 that Bhutan would lead this Project. Theprivate sector, NTOs and LTOs will implement theproject in the name of TWG. National and state-level tourism authorities will coordinate travelauthorizations and hosting arrangements. Ten tofifteen four-wheel-drive vehicles will take part.Bhutan will initiate the process by finding a willingchampion and commercial sponsor (such as a

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regional tour operator, fuel company, car dealershipor commercial bank) in whose name invitations forparticipation will be issued.

PATA and SATTE have indicated interest ininvolvement in promoting the project. The pioneersof the GMS caravans have offered to sponsorvehicles, if possible. Bhutan will stimulate interestin this project among a core group of private sectortourism operators. The cooperation of the tourismoffices in India’s North East States, of all SASECNTOs, and of South Asia’s travel media will besought. ADB will assist in coordination.

Project 3.2. Bagdogra Tourism Gateway and HubPlanning Study

Rationale

Establishing Bagdogra in Siliguri, West Bengal,India as an international airport will have significantimplications for SASEC tourism, providingconvenient access to many of the subregion’s key

existing and potential tourist destinations. There isstrong support for this concept from tourismstakeholders in India, particularly in Sikkim andWest Bengal, and in Bhutan and Nepal. The tourismindustry in these regions sees a Bagdogra hub asessential.

Given its central location, establishinginternational connections will position Bagdogra asa primary hub for the tourist areas of Darjeeling,Kalimpong, Dooars, Sikkim, and other North EastStates. Bagdogra will also play an important role asa back-up hub for key tourism destinations inBhutan, northern Bangladesh, and eastern Nepal.The imminent prospect of an overland tourist routefrom Bagdogra to TAR,PRC via the Nathu La addsto its significance.

With strong existing links to Delhi, Guwahati,and Kolkata, an improved airport at Bagdogra willalso facilitate intra-regional circuit travel. Much ofthe airport infrastructure is already in place. Aplanning study is required to establish thefeasibility of opening Bagdogra as an internationalairport. While the Government of India should lead

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this study, TWG is in a unique position to facilitateand assist in the international tourism sectorcomponents of the study. The aim will be to preparethe case of the tourism sector for the developmentof an international gateway to SASEC at Bagdogra.The combined resources of BBIN will be used tobuild the case from a subregional tourismperspective. The SASEC Transport Working Groupwill be asked to participate in the study. The resultsof the study will be submitted to concernedagencies of the Government of India.

Scope

SASEC’s national and regional airlines andairport managers as well as the umbrella tourismorganizations of SASEC will be encouraged toparticipate with the members of TWG and SASEC’sTransport Working Group in the design andoversight of a joint, subregional Bagdogra TourismGateway and Hub Planning Study. The Study willfocus on defining the potential tourism benefits ofdeveloping Bagdogra as a gateway and hub. TheStudy will include stakeholder workshops, analysisof tourist demand, and the canvassing regionalcarriers about their willingness to initiate servicesto and from Bagdogra. The economic impacts ofopening Bagdogra as an international touristgateway and hub will be assessed. The study will becarefully synchronized with India’s Tenth Plan, andwill take into account the security situation in NorthWest Bengal. Options for mobilizing financialresources will be another important element of thestudy.


The perspective of the subregional tourismindustry on the prospect of an international gatewayand hub at Bagdogra will be clarified. By exploringthe tourism implications of a gateway and hub atBagdogra, new and innovative tourism patterns willbe conceived for the central area of SASEC—especially Bhutan, Sikkim, and other North EastStates, eastern Nepal, and northern Bangladesh.These new patterns will complement proposedsubregional joint marketing and provide improvedvisitor access to the subregion. Project outputs maylead to the establishment of a rationale for one or

more national projects for tourism infrastructureimprovement at Bagdogra or elsewhere in centralSASEC. The tourism private sector in the subregion willhave good reason to engage with TWG. Additionally,an operational link will be forged between TWG andthe SASEC Transport Working Group.

Estimated Cost

The estimated cost of the project is $100,000.


The Government of India has offered to fundand implement this Study as a subregional exercise.DOT India will coordinate the Study with assistanceas required from key stakeholders, includinginterested development agencies such as JBIC andADB. Subregional tourism industry groups andinterested transport operators will be asked for in-kind assistance. Funding arrangements for anyresulting airport improvements may include privatesector participation.


NTOs agreed at the fourth meeting of TWG inMay 2004 that DOT India will implement the Study,which will be completed by 31 January 2005.Implementation arrangements will includeoversight of Study progress by transport andtourism officials from SASEC governments. Airlinesof the subregion and interested developmentpartners, such as JBIC and ADB, will be activelyinvolved at key stages of Study planning. ADB willassist DOT India in consulting key stakeholders,including TWG and SASEC Transport WorkingGroup members, during preparation of the StudyTOR. ADB will also approach the SASEC TransportWorking Group on behalf of TWG, seekingrecognition of this Study in its future agenda.

The Study’s methodology will be considereda pilot for other planning for downstream projectsarising from the SASEC tourism sector’ssubregional initiatives. The TOR will also includeanalysis of how such planning should take placein the future. JBIC has suggested that an effectivegovernance structure for SASEC developmentprojects is required. JBIC envisages an

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organization that is non-government in structure,but with a wide mandate for implementation anda high degree of flexibility in its operation. TheTOR will also include analysis of this suggestion.

Project 3.3. Reducing Impediments toSubregional Travel

Rationale

Travel in much of SASEC is perceived as“difficult” due to constraints imposed by security,permits, and travel connections. Measures areneeded to stimulate international travel to thesubregion by reducing barriers for international andregional tour operations. Such barriers include

• inadequate information about securityrealities, travel connections, border issues, visarequirements, currency, and permit applicationprocedures available to international touroperators in target markets,

• inadequate trade support material on how tosell South Asia, especially for areas in SASECthat are lesser known,

• lack of easily available information about thelesser-known ecotourism and Buddhist circuitattractions in the subregion,

• lack of information centers at tourism gatewaysand hubs to facilitate travel,

• complex and slow processing of permitrequirements for certain tourist areas,particularly in North East India and Bhutan,

• difficulties crossing borders due to permitrequirements, no signage, untrained officials, etc,

• lack of basic facilities at border points thatcontribute to the comfort and feeling of welcomeof visitors (such as at Banglabandh/Changrabandha, Phuentsholing/, Kakarbita,Rexaul/Birganj, Sunauli, Gauriphanta, etc.), and

• lack of reservations and interlining facilities andticket exchange agreements between nationaland domestic airlines in the region.

This project brings into focus the ongoingagenda of TWG to take a macro perspective of SASECtourism in order to identify ways of removing allforms of impediments to travel to and within thesubregion. In this regard, NTOs customarily act as

advocates on behalf of their respective tourismindustries for the removal of impediments. Anappropriate role for TWG is therefore to supportNTOs in this regard by identifying whereimpediments exist and suggesting mutuallybeneficial ways of overcoming them.

The first priority of TWG in this respect will beto improve cross-border travel throughout thesubregion. In this regard, removing impedimentsmeans addressing key problem areas such as borderformalities, visas and permits, airline access,currency use, and tour operator regulations. In thelonger term, TWG will turn its attention tomonitoring tourist flows to and within thesubregion and to making strategic suggestions onthe future directions of SASEC tourism growth. TWGrecognizes that many of these issues are political innature and implementation of this Project will taketime. Further, many impediments to travel will beappropriately dealt with in the wider forum ofSAARC.

Scope

As with Project 3.4 below, this project will beone of the long-term items on the TWG agenda. Theproject’s emphasis will be on identifying problemsand suggesting ways to address them, and will thusbe a means of generating more projects. Forexample, a study of impediments to travel in acertain area of the subregion may identify the needto improve border facilities. If this need can beaddressed on a subregional basis, TWG may initiatea project and seek funding.

This project will be implemented as a series ofstudies, workshops, and seminars on the topic ofimpediments to travel and connectivity to andwithin the subregion. Subregional experts willconduct the studies. International agencies will beasked to contribute to the studies and to conveningthe workshops and seminars.

An idea for the long term is a “South AsianTraveler” facilitation system that would assist thetravel of identified, pre-booked groups. The groupswould be made to feel welcome at airports andborder crossings through special hostingarrangements organized by NTOs. Internationaltour operators arranging these groups wouldreceive training on how to sell South Asia,

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facilitation system could create a strong andinformed network of international tour operators tosell the region and introduce streamlined travelfacilitation processes.

Estimated Cost

The project’s estimated cost is $250,000. In thelonger term, implemention of the South AsianTraveler facilitation system would cost an estimated$1 million.


TWG will ask multilateral and bilateral donorsto assist with funding studies and the convening ofworkshops and seminars on impediments to traveland connectivity to and within the subregion. TWGwill seek UNESCAP advice on prospective sourcesof funds. Where practicable, workshops andseminars will be scheduled around TWG meetingsor other events at which TWG members aregathered. When the time is judged right tointroduce the idea of the South Asian Travelerfacilitation system, a lead sponsor will be soughtfrom within the agencies willing to be developmentpartners of SASEC tourism.

especially the lesser-known areas such as parts ofBangladesh, eastern Bhutan, India’s North East,and Nepal’s remote areas. The realities of security,travel connections, visa, and permit applicationswould be explained and strengths highlighted, suchas the fact that the English language is widelyspoken. TWG will seek sponsorship and coordinateproduction of educational material for websites,brochures, and CDs. PATA also will be asked forassistance in this and in distribution of the resultinginformation to key tour operators using its chaptersin source markets.


Removing impediments to cross-bordertravel and improving connectivity to and within thesubregion will make fundamental improvements inthe attractiveness of the subregion to tourists andin the viability of tourism industries. When viewedfrom a macro viewpoint, considerable constraint totravel exists within the subregion, particularly themany instances of poor or lacking connectivity. TWGinterventions to improve access and connectivitywill be a fundamental complement to productdevelopment and tourism marketing. In the longerterm, realization of the South Asian Traveler

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NTOs, at the fourth meeting of TWG in May2004, agreed that India would lead implementationof this project. To begin, DOT India will ask UNESCAPto assist TWG by commissioning studies andconvening workshops and seminars on impedimentsto travel and connectivity to and within the SASECsubregion. ADB will contribute by examining theprocesses being followed in this regard by othergroupings, such as GMS and BIMST-EC.

Project 3.4. Asian Highway ImprovementsAdvocacy

Rationale

Twenty-three Asian nations have signed atreaty for implementation of the Asian Highway, amodern version of the ancient Silk Road that oncelinked Asia with Europe. The Asian Highway isaimed in part at helping landlocked countries gainroutes to seaports. As the Asian Highwayprogresses it will have implications for SASECtourism; the Asian Highway vision includespractical measures such as unifying signage andimproving border facilities.

Travel in the SASEC subregion, even withinestablished tourism patterns such as the Footstepsof the Lord Buddha circuit, is greatly constrained bybad roads, poor linkages, and minimal waysideamenities. Further development of the AsianHighway in the subregion has the potential toimprove road access to many key tourismdestinations, including important ecotourism andBuddhist sites. Because road travel brings touriststo remote rural communities, realizing the tourismpotential of the Asian Highway through SASEC willgreatly enhance opportunities for pro-poor tourism.It is consequently important that TWG find ways tosupport the Asian Highway concept through SASEC.

Scope

This long-term project will involve TWG actingas the voice of SASEC tourism in support oftourism-related improvements on SASECstretches of the Asian Highway. TWG will becomean advocate and facilitator for any project that willfurther the interests of the tourism sector andenhance tourism’s role in delivering pro-poorbenefits through improvements in the AsianHighway.

Initially, there will be discussions betweenTWG, the SASEC Transport Working Group, JBIC,

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ADB, and UNESCAP. At each TWG meeting, reportswill be heard from NTOs, transport sector officials,and UNESCAP about progress in Asian Highwayimprovements. At the same time, tourism projectideas associated with the Asian Highway will betabled for TWG endorsement and support. Anyproject that TWG supports will be given a projectnumber and added to the TWG list of programs andprojects.

JBIC is currently involved with initiatives inThailand and Uttar Pradesh involving thedevelopment of roadside visitor stations that wouldprovide convenience and information facilities totravelers. This concept, called Michi no Eki in Japan,involves community participation in the planningphase. The actual facilities are jointly owned by theagency administrating the road and the localauthority. Subject to the success of current trials inIndia, JBIC believes this concept could be applied toother tourism-focused areas of the Asian Highway inSASEC. JBIC also has experience with the IndustrialVillage concept. Under this concept, assistance isprovided to communities to build centers for theproduction and sale of handicrafts, and for thepromotion of tourism in and around their villages.In cooperation with JBIC, TWG will monitor progressof the introduction of the Michi no Eki concept inSouth Asia and, where appropriate, advocate itsapplication to portions of the Asian Highway inSASEC.


Improved roads and roadside facilities in thesubregion will enhance comfort and convenience,thus encouraging more visitors to travel by road.Improvements in roadside facilities also willpromote regional mobility, enhance ecotourism inremote areas, and encourage pilgrimage trips alongBuddhist circuits. By supporting the Asian Highwayconcept on a subregional basis, TWG can enhancethe rationale for transport sector projects and fosternew tourism industry linkages. Poor communitiesalong the Asian Highway will have greateropportunities to participate in tourism. In themedium term, TWG will support the developmentof subregional tourist routes. In the long term,visitors from intra-regional markets will beencouraged to travel the subregion by road, thus

increasing roadside business and other benefits oftourism in remote areas.

Wherever there is the prospect of increasingtourism flows at sensitive sites, some impacts couldbe negative. TWG needs to maintain an activeinterest in ensuring that improvements in themanagement of tourism resources keep pace withtourism development.

Estimated Cost



Japan has been a major source of financialassistance for the development of the AsianHighway. Future financing of Asian Highwayprojects is also expected to come from the largerparticipating nations and from internationaldevelopment banks. JBIC has indicated willingnessto assist TWG in this tourism-related project, withpotential joint participation of ADB. TWG will askfor JBIC assistance, focusing initially on developinga SASEC version of the Michi no Eki community-based roadside facilities concept.

UNESCAP has programs of its own promotingtourism on the Asian Highway, such as tourism oninland waterways and tourism associated withpoverty alleviation. UNESCAP will be a long-termdevelopment partner in this project.

Many SASEC countries already have projectsunderway on stretches of the Asian Highway fundedby various sources, including multilateral andbilateral agencies. Wherever tourism infrastructureis being upgraded, TWG will ask the implementingagency to set aside funds to assist TWG in itsadvocacy role under this project. Such infrastructureprojects will benefit from TWG support incoordinating the subregional tourism industryinput into the planning process.


At the fourth meeting of TWG in May 2004,NTOs agreed that DOT India would leadimplementation of this project. Initially, JBIC will

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be asked to assist by exploring the use of the Michino Eki community-based roadside facilities conceptin South Asia. JBIC has signaled that its assistancewill be subject to a commitment by TWG todeveloping an effective governance structure forSASEC development projects (see Project 3.2).

DOT India, on behalf of TWG and assisted byADB, will establish working links to the SASECTransport Working Group, ensuring that tourismprojects with transport elements are fullyunderstood by the Transport Working Group. JointWorking Group meetings will be undertaken fromtime to time.

In addition to general collaboration,UNESCAP has agreed to assist TWG in trackingoverall progress of the Asian Highway throughSASEC, where relevant to tourism. UNESCAP hasasked SASEC NTOs to lobby their ministries oftransport as the SAARC region is currently in theprocess of setting priorities for projects upgradingthe Asian Highway.

DOT India will coordinate, on behalf of TWG,SASEC tourism industry inputs to the planningprocess for projects upgrading tourisminfrastructure on the Asian Highway.


Developing Human Resources

Project 4.1. Encouraging The Network of AsiaPacific Education and TrainingInstitutes in Tourism (APETIT) toCollaborate with South Asia

Rationale

The major tourism training institutions inSASEC countries require technical support, whilesome, such as Bangladesh, need funding support forrefurbishment of training facilities. There is also awidely perceived need for more training of thesubregion’s trainers in the basic skills of tourismso they conform with international best practicelevels. For ecotourism and tourism on Buddhistcircuits, the training provided trainers needs to

reach down to local institutions and furnish in-service training for local operators and guides.

APETIT was formed in 1997 to foster regionalcooperation in HRD in tourism across Asia and thePacific. APETIT’s objective is to promotecooperation in HRD in the tourism sector amongtourism education, training, and research institutes,national tourism organizations, and tourism tradeorganizations. Assisted and convened by UNESCAP,APETIT works by sharing information, resources,and expertise at the regional level throughnetworking and cooperative activities. One of itsfounding principles is that more advancedinstitutions will assist those less advanced throughtraining exchanges of various kinds.

At the fourth meeting of TWG in May 2004,UNESCAP agreed to assist TWG by helping arrangeAPETIT assistance to tourism training institutionsof the subregion, with the objective of trainingtrainers and generally facilitating the process ofupgrading SASEC’s HRD in tourism. A majorbenefit of such assistance would be that it isexpected to foster subregional coordination intraining standards. This prospect received strongendorsement at all stakeholder workshops duringthe preparation of this Plan.

Scope

UNESCAP will convene meetings to establishprocedures for developing and overseeing projectcomponents. Studies assessing national tourismtraining capabilities are envisaged, covering suchareas as identification of the needs andopportunities for technical assistance and otherinterventions through APETIT. Phasedimplementation of the project would follow. Whereinstitutions require upgrading, APETIT could assistwith the determination of needs and with projectoversight.


By working with APETIT on a subregional basis,the training institutions of SASEC will developstronger links with each other. Ultimately, functionallinks will develop to the point where the idea of“centers of excellence” in tourism trainingthroughout SASEC and beyond (i.e. BIMST-EC and

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SAARC) can be realized. APETIT interventions willimprove standards of training, the benefits of whichwill be upgraded skill levels of workforces innational tourism industries. Fulfilling trainingneeds within the subregion will diminish the needfor travel outside the region for training, generatingsavings in foreign exchange.

Estimated Cost

The total estimated cost of the project is $1million. Seed funding of at least $25,000 will berequired to support Bangladesh’s participation inthis project.


ADB has a regional TA in the pipeline for HRDin SASEC tourism. TWG has requested that someof this TA be tailored to support the early stages ofthis project. The advice of UNESCAP will be soughton all matters concerning the project, including itsfinancing.

Some national training institutions currentlyreceive bilateral assistance. NTOs will considerseeking allocation of some of these bilateral fundsto subregional projects, utilizing APETITcoordination. The Austrian Government hasexpressed interest, for example, in participating inthis project as a component of its assistance toBhutan’s Hotel and Tourism Management TrainingInstitute. With the assistance of APETIT membersfrom developed countries, additional bilateralassistance will be sought.

Wherever upgrading of infrastructure isrequired, multinational development agencies willbe asked to assist.


NTOs agreed at the fourth meeting of TWG inMay 2004 that Bangladesh would lead the project.Bangladesh will seek UNESCAP views beforeimplementation arrangements are developed. TheMeeting also agreed that an early priority would beto establish links with the large number of APETIT

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members within SASEC countries. All of the five areasof APETIT activities are of interest to TWG for thisproject, i. e. information management,communication links, training and advisory services,sharing experiences, and research and development.

Project 4.2. South Asian Host

Rationale

This project aims to implement “good host”training to encourage friendliness, increaseawareness of tourism, and foster attitudes of“neighborliness” in officials and others who areamong the initial, “front line” contacts in SASEC bytourists. It is vital that visitors, especially intra-regional tourists, feel welcome. Initial contacts havea significant influence on visitors’ perceptions inthis regard.

Scope

“South Asia Host” courses would train airportimmigration, customs and security staff, transportworkers (taxi, bus, and train), and staff of smallhotels, restaurants, and cafes. Ideas will beborrowed from the “good host” programs of suchcountries as Canada and New Zealand, and fromIndia’s relevant experience.

It is envisaged that one or two international“good host” training specialists would lead a teamof trainers from SASEC countries to provide trialon-site courses in selected gateway cities. If theinitial trial round of South Asia Host training issuccessful, subsequent courses could be offeredelsewhere on a user-pays basis. Possible venuesinclude Siliguri, Dhaka, Kathmandu, Kolkata, NewDelhi, Paro, and Thimphu.


Through improved awareness andcompetency, trainees will deliver higher levels ofvisitor service and visitor satisfaction. Downstreambenefits will include greater subregionalunderstanding, increased subregional friendliness,increased tourism flows, and associated benefits tolocal economies. This project is complementary to

the subregional joint marketing project and a keystarting point for sustainable destinationmanagement.

Estimated Cost



TWG will respond to interest in this projectfrom funding agencies. Once the project isunderway, NTOs would promote the idea of user-pays arrangements with concerned front lineagencies and the private sector. If the trial coursesare successful, training will continue on acommercially sustainable basis.


NTOs agreed at the fourth meeting of TWG inMay 2004 that Bhutan would lead this project, andthat the project is not an immediate priority. Theneed that this project addresses requirescommitment at the national level and efforts byindividual NTOs. NTOs agreed to document casestudies of their experiences relevant to theperceived need for this project for the next TWGmeeting in February 2004.

A subregional approach will only be possiblewith the identification of a donor willing tocoordinate with the individual NTOs, in that theproject would be implemented through them. Thedonor would be asked to assist by providing one ortwo experienced persons to lead a team of trainers.Sponsorship and user payments would cover costsnot picked up by the donor, assisting agencies, andNTOs. India’s experience with its Capacity BuildingProgram would be tapped.

Project 4.3. Training for Travel Media

Rationale

It is desirable that TWG activities get underwayquickly with some relatively simple projects that canbe expected to quickly yield positive, tangible

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results. The tourism and travel media play a vitalrole in tourism. Industry magazines and newslettersenhance communication within the industry and,crucially, link sellers with buyers. SASEC tourismneeds effective industry media. While many goodtravel industry magazines exist, subregionalstandards of journalism and travel writing could beimproved. This project envisages a customizedtraining course in travel trade writing for tourismand travel journalists of the subregion.

Scope

A single one-week course with about 25participants is envisaged at a venue within thesubregion.

ADB’s proposed regional TA on HRD intourism could contribute to funding this project.PATA has indicated an interest in being associatedwith this project.


If successful, this project will boost theconfidence of TWG. It will make a direct contributionto an important aspect of tourism in the subregion,upgrading the skills of travel writers and focusingother media on travel issues. It will also bring theactivities of TWG and its development partners tothe attention of the media. In the longer term, thetravel industry, potential visitors, and currentvisitors will benefit by being better informed by thetravel media.

Estimated Cost

The total estimated cost of this project is$50,000.


A sponsor will be sought to cover the cost ofproviding the required trainers and to assist with thevenue. A charge for each participant will cover theremaining costs of the venue and have the effect ofengaging employers in the project. NTOs asked ADBat the fourth meeting of TWG in May 2004 to considerwhether its proposed regional TA on HRD in tourismcould contribute to funding this project.


At the fourth meeting of TWG in May 2004,NTOs agreed that Nepal would lead this project.NTB will approach PATA and then report, with animplementation proposal, to NTOs by e-mail before31 July 2004. Subject to further consultation withPATA and ADB, it is envisaged that implementationwill involve two or three experienced traveljournalists from the Asian region. They will designand implement a course aimed at promotingprofessionalism in all aspects of travel and tourismjournalism.

Project 4.4. Project Management Training forNTOs and LTOs

Rationale

Another project with potential for promptimplementation and results is Project ManagementTraining for NTOs and state or local tourismorganizations (LTOs). The rationale for this projectis that TWG programs for subregional cooperationin tourism will be more successful the morecompetent are NTO and LTO managements andtheir contributions to those projects. Subregionalcooperation will be enhanced by the training courseitself through the joint participation of NTO andLTO personnel.

Scope

A 10-day course is envisaged, with 10 to 15participants. The course could be designed andimplemented by a respected management traininginstitution from the subregion with public sectororientation. Study tours could be included todestinations in the subregion where attractions andmanagement issues are similar among SASECcountries.


This project would boost the capacity andreadiness of NTOs and LTOs to participate insubregional cooperation projects. It will createnetworks useful for the implementation of

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cooperative projects and generally improve theefficiency of NTOs and LTOs in SASEC.

Estimated Cost



One major sponsor will be sought thatsupports an early start of subregional cooperationin tourism. At the fourth meeting of TWG in May2004, NTOs asked ADB to consider inclusion orsupport of this project in its proposed regional TAon HRD in tourism. Also at this meeting, WTOoffered its support of the project with technicalexpertise.


NTOs agreed at the fourth meeting of TWG inMay 2004 that Nepal would be the project leader.NTB will take responsibility for working with thesponsoring agencies to arrange the course on behalfof TWG. The target date for implementation isDecember 2004.

C. Product-Focused Programs

1.1.1.1.1. Program 5Program 5Program 5Program 5Program 5

Developing Ecotourism Based on Natureand Culture

Project 5.1. Integrated Project on Trekking in theHimalaya

Rationale

Tourism associated with the majesticmountains of the Himalaya is the focus of thisproject. At present, trekking areas in SASEC areconstrained by access, security and, importantly,

lack of marketing. One critical need is for marketingto promote Himalayan trekking and to position itas one of the best examples of activity-basedtourism in the world. Strategic planning is requiredfor this, and to incorporate means of improving theself-esteem, dignity and livelihoods of mountainpeople.

“The Great Himalayan Trail” concept has strongstakeholder support in the subregion, both as amarketing and rural development concept. Theconcept will be used to link marketing and productdevelopment of lateral trekking, a break from “upand back” treks in favor of opening up circuits intonew valleys. This will bring ecotourism benefits topoor rural communities in valleys currentlyneglected by popular trekking routes. Within thisframework, opportunities exist for new cross-bordertreks linking established treks in Nepal, Darjeeling,Sikkim, and Bhutan.

Scope

First developed in Nepal, The Great HimalayanTrail is both a marketing slogan and a theme tostimulate new trek areas and cross-border products.Subregional cooperation opportunities arising fromthis concept include the potential for new bordercrossings and joint promotion of trekking in theHimalaya. The central vision is that new trekkingroutes will eventually link SASEC countries. Localguides, homestays, and managed campsites willinvolve and benefit local communities.

The project will involve negotiating andimplementing joint strategies for marketing and

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development of The Great Himalayan Trail. Thepracticalities of facilitating cross-border treks willbe considered and agreed by concerned authorities.Plans for facilitating trekking, including providingsecurity and safety, will be prepared andimplemented in partnership with the trekkingindustries of the three countries. Local governmentauthorities, INGOs, and other developmentagencies already active in these areas will be askedto coordinate and assist implementation, especiallyby assisting in the preparation of villagecommunities for tourism. A brochure and mappromoting the various sections of the route will beprepared. Documentary films of The GreatHimalayan Trail will be encouraged.

There are a number of options for routeslinking Nepal, India, and Bhutan that combine drivingwith trekking. The Great Himalayan Trail may beconsidered to extend the length of Nepal, linking theworld famous trekking areas of Annapurna andSagarmatha. In central SASEC, the Great HimalayanTrail stretches from Tserang to Yalung (KanchenjungaConservation Area [KCA], Nepal), over Kanglakhang(5,560 meters) to Pangding, Dzongri, and Gochela toYuksam roadhead in West Sikkim. From Yuksam, onemay either drive via Ravangla to Gangtok, or trek toGangtok via Thangsing, Labdang, Tashiding, Ralang,Meanam, Dzongu, Mangan, and Phodong. FromGangtok, the Nehru Trek route is taken via Nathu Lato Chumbi Valley in TAR,PRC to Phari and Ha. Thetrail then follows established Jomolhari and Snowmantrek routes in Bhutan, leading via Trashiyangste andSakteng to Tawang Monastery in Arunchal Pradeshand via Bomdila and Kaziranga to Guwahati in Assam.

When permissions has been obtained, thethree key features of cross-border interest alongthe Great Himalayan Trail in the SASEC subregionwill be:

(i) Cross-border trekking trails combiningEast Nepal’s KCA and KhangchendzongaNational Park. A variety of routes using theChiwa Bhanjyang and Kanglakhang trekpasses link Kanchenjunga Base Camps inNepal with Uttare and Yuksam in WestSikkim (see Key Area 3).

(ii) The new Nehru Trek covering threecountries. First made famous by the lateIndian Prime Minister Nehru’s journey, thisroute starts in Gangtok, Sikkim and goesvia Tsomgo Lake and the Nathu La to theChumbi Valley (hot springs) and thehistorical trading towns of Phari and Jomoin TAR, PRC, then to Ha Valley and Paro inBhutan. Originally an historic trail for themule trade, opening the Nehru Trek willcreate a new signature adventure product.It may be undertaken all year round, andthere are onward tourism linkages withLhasa (see Key Area 9).

(iii) East Bhutan to Arunchal Pradesh fromTrashigang, the eastern end of Bhutan’sSnowman Trek. The trail proceeds eastthrough Sakteng Wildlife Sanctuary to theimportant Buddhist Tawang Monasteryand Bomdila in Arunchal Pradesh, India(see Key Area 9).


Promoting the Great Himalayan Trail conceptwill in itself produce development benefits byheightening awareness of and demand for trekkingin the Himalaya. Creating a model for lateraltrekking will have implications throughout theHimalaya. Providing market linkages for thevarious community-based tourism developmentprojects in Nepal, Sikkim, and Bhutan will producebenefits for each project. Overall, this project willhelp place South Asian ecotourism at center stagein world tourism.

Whereas Himalayan trekking is mainlyassociated with the grandeur of the high mountains,

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other treks may develop a new focus on jungles,ethnic peoples (such as in the Chittagong area ofBangladesh), heritage villages (such as in Mon andTuensang Districts of Nagaland), and other culturalareas.

In order to avoid negative consequences, theproject will employ state-of-the-art approaches toenvironmental, social, and cultural impact issues,with particular focus on high standards of water andwaste management practices. New trekdevelopments will be well controlled, government-approved and clearly focused on raising the self-esteem, dignity, and livelihoods of mountainpeople.

Estimated Cost

The estimated total cost of the project is $2.5million. An annual budget of approximatedly$100,000 will be required to initiate the project.


One or more regional or linked national TAinitiatives will be sought from multilateral agenciesto provide frameworks for planning. INGOs andbilateral agencies supporting ecotourism will beasked to cooperate and pool their resources to seekfunding so as to be able to contribute on either asubregional or national basis. Physicalinfrastructure works will be implemented at thenational level through government funding, with orwithout loan financing.


NTOs agreed at the fourth meeting of TWG inMay 2004 to seek proposals from a range ofdevelopment agencies to assist in the coordinationof this project. SNV, TMI, WWF, ICIMOD, and ECOSShave all previously expressed interest. Becausethere will be a need to coordinate a wide range ofstakeholders in Nepal, India, and Bhutan, andbecause UNDP is highly experienced in this field,NTOs agreed to ask UNDP Nepal to play acoordinating role. NTOs agreed that Nepal wouldlead this project and approach UNDP on behalf ofTWG.

Initial implementation is envisaged as a seriesof linked TA projects, implemented in associationwith an alliance of INGOs and bilateraldevelopment agencies active in these areas. Onepossibility is that UNDP Nepal could integrate TheGreat Himalayan Trail concept into the Nepal-basedTourism for Rural Poverty Alleviation Program(TRPAP), and develop linked projects in theHimalayan regions of India and Bhutan through itsrepresentative offices in those countries. Airportupgrading coupled with the rural tourism trainingmodalities of ADB’s shelved Nepal EcotourismProject could also be adapted to this project. Asenvisaged in the Nepal Ecotourism Project,experienced ecotourism development agenciesactive in these areas, such as TMI, WWF, ICIMOD,SNV, and ECOSS, could coordinate implementationof the software components. In the long term,whenever remote airport redevelopment or otherinfrastructure needs arise in areas not threatenedby security problems, a loan project could beprepared. The planned SASEC Integrated ProductDevelopment Plan (Project 5.5) will influence futureimplementation strategies.

Project 5.2. Integrated Project on Ecotourism inGanga-Brahmaputra Basin

Rationale

Just as the Mekong River provides the notionallink between the various tourism products of GMS,many of which are not river-based, so too could theGanga-Brahmaputra river basin be developed as anintegrating theme for rural tourism in large areas ofSASEC characterized by poverty.

The Ganga-Brahmaputra basin could combineevocative river-based tourism images with tourismopportunities based on world-class wildlife andethnic cultures. The key objectives of this projectare cooperation in overcoming barriers to tourism,and joint tourism promotion in order to heightendemand. The project’s ultimate objective is toreduce poverty. The private sector will beencouraged to follow with new travel products.National and local authorities will be encouragedto develop infrastructure and facilities.

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Scope

The geographic scope of the project couldultimately include all the landscapes associatedwith the Ganges, Brahmaputra, and Teesta riversystems, linking such famous reserves as theSundarbans forests of Bangladesh and India to theManas national parks in Bhutan and India and theRoyal Chitwan National Park in Nepal. Jointmarketing will focus on establishing images withparticular emphasis on tourism based on world-class wildlife and ethnic cultures. These mightinclude tigers in the Sundarbans, other rare wildlifespecies, orchids and other unique flora, ethnictribes, handicrafts, village tourism, barges on theBrahmaputra River, paddle steamers, tea, nature,silk, fishing, and religious celebrations such as theBrahmaputra festival. The target of promotions willbe the regional tourism industry and internationalbuyers with a demonstrated interest in South Asia.Barriers will be overcome and infrastructuredevelopment will be carried out throughcoordinated advocacy activities.

A key starting point will be to promote andexpand upon the new cruising products on theBrahmaputra River. As it progresses, this projectwill reflect a strong ecotourism theme, includingconcern for environmental conservation and forlocal communities’ benefit from and participationin tourism. Wildlife is a major competitiveproduct, and river-based products are a majorcomplementary theme. Opportunities will besought to develop new, distinctive and innovativetourism products, including snow holidays, teatourism, and circuits linking world heritage sites.


Benefits will be measured in terms ofimprovements in the convenience of travel,heightened levels of awareness among relevantelements of the tourism industry, private sectorinvestment in associated tourism products, andwhether a tourism development agenda is adoptedby further infrastructure projects. New products willbe created that will attract new market segments,increase tourist numbers, and spread the benefitsof tourism.

Estimated Cost

Total cost of the project is estimated at $2million. An annual budget of approximately$100,000 will be required to initiate the project.


SASEC NTOs, plus the state tourism offices ofIndia’s North East will establish arrangements forjoint promotions (see Project 1.1), some of which willbe allocated to this project. Through DOT India, otherappropriate agencies in India will be asked to assist.

Development partners will be sought,including all Indian agencies associated withdevelopment of the country’s North East, plusnational and international conservation, wildlife,and ecotourism organizations. Sponsors will besought for an annual project coordination meeting.

For projects associated with India’s North East,the Department of Development of the North EastRegion (DONER) and national projects (such as theUNDP-MOT Village Tourism Program) will beharnessed. State tourism development agendas willbe coordinated and funds mobilized throughsources at the state level and from internationaldevelopment agencies.

Where larger infrastructure facilities arerequired, needs will be communicated to therelevant SASEC Working Group.


At the fourth meeting of TWG in May 2004,NTOs agreed that India and Bangladesh wouldjointly lead this project, inviting Bhutan and Nepalto join once it is underway. Joint marketing effortswill be led by NTOs and coordinated within Projects1.1 and 1.2. Product development strategies willinitially build on the experience of the cruisesrecently begun on the Brahmaputra River. Theplanned SASEC Integrated Product DevelopmentPlan (Project 5.5) will influence future strategies forprojects such as this that focus on ecotourismbased on nature and culture.

Annual project coordination meetings will behosted every second year by one of India’s NorthEast States. Bangladesh, Bhutan, and Nepal willalternate as host in the other years. Development

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partners will be asked to assist in coordination byattending the biannual project coordinationmeeting.

Project 5.3. Integrated Project on AdventureTourism in South Asia

Rationale

Adventure Tourism is the third sub-theme thatcompletes the range of ecotourism in SASEC. Fromthe soft adventure of village-based tourism, throughcultural trekking, to the high adventure of rafting andmountaineering, this sub-theme is appropriate toselected products throughout the subregion. Theproject is focused mainly on marketing anddeveloping professionalism, and is aimed at thoseelements of the world travel industry specializingin adventure travel—at whetting their appetite forthe products of South Asia. It will also attract SouthAsian youth and student markets, thus fulfillingnational social objectives, fostering regionalunderstanding, and providing off-season business.Corporate groups engaged in building teams willbe targeted as a rapidly growing market segmentfor adventure tourism.

Scope

A portion of the SASEC Tourism Market Fund(see Projects 1.1 and 1.2) will be set aside forpromotion of adventure tourism. This project willestablish a South Asian Network of ProfessionalAssociations of Adventure Tourism Operators. ThisNetwork will provide advice and assist inpromotional activities. Additionally, the Networkwill undertake initiatives aimed at buildingprofessionalism, including forming newprofessional associations of adventure tourismoperators where none exist. More generally, theNetwork will advocate adventure tourism andsupport its interests, such as the protection of free-flowing rivers of present or potential use foradventure tourism in the subregion.

The project will include the promotion of newadventure tourism destinations in the subregion,allowing lesser-known areas to benefit from thedownstream effects of tourism. Such areas might

include the Mon and Tuensang Districts ofNagaland, Arunchal Pradesh, and other areas inNorth East India. The project will also championthe development of a subregional facility fortraining in adventure tourism.


The demand for adventure tourism in thesubregion will grow. This will result inimprovements in professionalism, confidence, andstandards in the adventure tourism industry. Intra-regional and inter-regional professional links willbe enhanced. New products will be created inSASEC that will attract new adventure segmentsand spread tourism benefits to remote rural areas.

Estimated Cost

The total estimated cost of the project is $2million. An annual budget of approximately $20,000will be required to initiate the project.


At the fourth meeting of TWG in May 2004, theGovernment of India agreed to fund the initialstages of this project in conjunction with itsongoing support for the International Institute forAdventure Sports in Sikkim. Joint promotion ofadventure tourism will be implemented underProjects 1.1 and 1.2. India, assisted by as manydevelopment partners as possible—such asbilateral agencies already active in the subregion,will foster the formation of the South Asian Networkof Adventure Tourism Operators. The Network itselfwould be self-supporting, except where its activitiesare supported by a project funded by TWG.

Financing for subprojects initiated andchampioned by the Network will be sought on acase-by-case basis.


NTOs agreed at the fourth meeting of TWG inMay 2004 that India would lead this project. DOTIndia will coordinate the process of establishing theNetwork, assisted by the International Institute for

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Adventure Sports in Sikkim, NTB, and ECOSS. TheNetwork will meet once every year in conjunctionwith the Sustainable Tourism Forum (see Project5.4). STF will be a major platform for advocacy. TheNetwork will provide means for those developingadventure promotions under Projects 1.1 and 1.2to communicate with the industry.

Implementation arrangements for subprojectsinitiated by the Network will be designed on a case-by-case basis in collaboration with the fundingagencies. The planned SASEC Integrated ProductDevelopment Plan (Project 5.5) will influence futureimplementation strategies for this project.

Project 5.4. South Asia Sustainable TourismForum

Rationale

When the program for tourism cooperation inGMS began, there was a need for radicalimprovement in communication between theprivate and public sectors in most sectors of theregion’s economy, including tourism. Out of thisneed came the Mekong Tourism Forum.Requirements for such improvement in SASEC arenot so broad. In SASEC, it is a widely recognizedthat the government agencies, NGOs, and INGOsmanaging ecotourism projects need to collaboratemore effectively with all stakeholders in the tourismindustry, particularly the private sector. Whileecotourism activities of the public sector and thoseof the private sector are each highly regarded in theirrespective circles, there is often a gulf between thetwo sectors. Bridging this gulf would be a veryeffective way to cement South Asia’s leadership inworld ecotourism. Under this project, a SustainableTourism Forum (STF) would be created for thispurpose. The Forum would be a think-tank and,ultimately, a showcase for South Asian ecotourism.

Subject to further refinement, the objectivesof the South Asia STF will be to

• provide a forum for communication betweenpublic and private sectors,

• close the gap between ecotourism projects andthe private sector tourism industry,

• help coordinate various regional initiatives inecotourism,

• project a South Asian identity and engenderpride in the subregion’s ecotourismachievements,

• introduce international best practice andstandards in ecotourism,

• deal with common issues concerningsubregional sustainable tourism,

• provide a venue for joint product planning andmarketing,

• foster cooperation among SASEC countries,and

• invite, from time to time, participation by otherregional bodies, such as SAARC and BIMST-EC.

Scope

An STF would be held every year in conjunctionwith the TWG meeting. The venue would rotatearound the subregion with TWG meetings. The taskof organizing STF would rotate as well. The hostNTO would convene an STF Organizing Committeeto coordinate arrangements for convening STFimmediately prior to the TWG meeting. In everyaspect, STF would be a partnership between thesubregion’s private sector tourism operators andthose who use tourism as a development tool. STFwould be a seminar at which topical issues couldbe addressed. It would also be a showcase of thesubregion’s ecotourism products.

There has been strong stakeholderendorsement of STF as a way to link NGOs andresource managers with the private sector travelindustry. Also strongly endorsed is the long-termprospect of STF becoming a showcase forsustainable tourism based on the natural andcultural heritage in SASEC.


A partnership would be forged andstrengthened between the subregion’s tourismprivate sector and government agencies,development agencies, INGOs, and NGOs engagedin ecotourism activities in the subregion.Ecotourism (broadly defined) projects would havea platform at which to establish market links withthe tourism industry and to check the viability of

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their products. Responsible and sustainablepractices would be encouraged in the tourismindustry. Good and bad lessons could be sharedand subregion-wide problems addressed bybringing regional representatives together. Pro-poortourism techniques would be advanced. Thesubregion’s new ecotourism products would beintroduced to the industry. Over time, STF wouldhelp establish South Asia as home to the world’sbest in ecotourism.

Estimated Cost

Total project cost is estimated at $200,000.Annual sponsorship of approximately $10,000 willbe required.


Seed sponsorship of a gradually diminishingamount—similar to ADB’s initial support for theMekong Tourism Forum—is envisaged for the firstfour events. Subsequently, the aim will be for STFto become self-supporting through multiplesponsorship arrangements.

At the fourth meeting of TWG in May 2004, NTOsagreed to invite interest in developing this projectconcept further. Invitations will go to ICIMOD, SNV,TMI, WWF, ECOSS, the Environmental InformationSystem for Ecotourism (ENVIS) Chapter in Sikkim,and STN and UNDP’s TRPAP in Nepal.


NTOs also agreed at the fourth meeting of TWGin May 2004 that Nepal would lead this project and,with ADB’s assistance, approach potentialdevelopment partners. If one or more developmentpartners can be found, their key roles will be toassist the host NTO to convene an STF OrganizingCommittee in advance of STF, and then to assistthe Committee. The development partners and theCommittee will arrange and promote the eventjointly. The planned SASEC Integrated ProductDevelopment Plan (Project 5.5) will influence futureimplementation strategies of this project.

Project 5.5. SASEC Integrated ProductDevelopment Plan for EcotourismBased on Nature and Culture

Rationale

At the fourth meeting of TWG in May 2004, therepresentative from WTO suggested that an SASECIntegrated Product Development Plan forEcotourism Based on Nature and Culture shouldbe prepared to coordinate all the projects underProgram 5. Such a Plan could assess the ecotourismproducts of the subregion in a more detailed waythan was possible in the SASEC TourismDevelopment Plan study. NTOs agreed to make thepreparation of this Plan a project within Program 5,provided the other proposed projects in Program 5progress as planned.

Scope

The SASEC Integrated Product DevelopmentPlan for Ecotourism Based on Nature and Cultureis conceived as an integrated picture of the productdevelopment needs and opportunities across thesubregion. NTOs specifically requested that thePlan should not be a masterplan. The Plan couldidentify ecotourism product development projects,both subregional and national, for implementationunder the guidance of TWG.


The benefits of such a Plan would includeintegration of SASEC’s ecotourism productdevelopment activities with WTO internationalactivities in ecotourism and sustainable livelihoods,including the WTO-led Sustainable Tourism for theEradication of Poverty (STEP) Program. Its value toTWG would include systematic identification ofecotourism product development needs andopportunities across the subregion.

Estimated Cost


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WTO has offered to approach UNDP New Yorkon behalf of TWG to seek funding for the Plan. Thisoffer was made subject to ratification by SASECNTOs of the final report of the SASEC TourismDevelopment Plan, and a request from all fourSASEC governments that WTO to prepare theproject Plan.


Implementation of the Plan will be by WTO incooperation with TWG and SASEC NTOs.


Developing Buddhist Circuits

Project 6.1. Footsteps of Lord Buddha

Rationale

There is opportunity and urgent need for jointtourism planning and marketing by India and Nepalof the major sites associated with the life of the LordBuddha on the premier Buddhist Heartland circuit(Key Area 2).

Destinations on the circuit are Rajgir, Nalanda,Bodh Gaya, and Vaishali in Bihar. In Uttar Pradeshcircuit destinations are Sarnath, Kushinagar, and

Sravasti. In Nepal, Lumbini with its sevensurrounding sites, including Kapilavastu, aredestinations on the circuit. Lumbini and Bodh Gayaare cultural World Heritage Sites. The circuitreceives an estimated 50,000 visitors annually, andmany more visit individual sites during festivals andteachings (Table 19).

The circuit is currently constrained by securityin Bihar and Uttar Pradesh. Inadequate air links, badroads, and poor rail connections are alsoconstraints. Major potential exists to extend thecircuit to include Kathmandu—currently includedin only 10% of packages—and to expand its appealto new markets, including sightseeing and generalinterest segments. Improvements needed includelanguage interpretation for visitors, sitemanagement and beautification, border facilities atButwal, wayside amenities, as well as otherinfrastructure on the Asian Highway. Marketresearch and surveys are needed for analyses similarto those in the NTB Lumbini Visitors’ Survey 2004.Local communities and Buddhist custodians needto be engaged in visitor management.

Based on JBIC experience in Uttar Pradesh, it isclear that conservation standards are also in need ofvery urgent attention, although preservation is theprimary focus of some existing management systems.

Scope

This project will introduce a tourism elementinto the management and planning of sites on theFootsteps of the Lord Buddha circuit. Joint planningby Nepal and India, integrating conservation andtourism for the circuit, will lead to the identificationof individual national projects. Joint tourismplanning for the sites should involve a wide rangeof stakeholders including DOT India, theArchaeological Survey of India (ASI), the StateGovernments of Bihar and Uttar Pradesh in India,NTB Nepal, Nepal’s Department of Archaeology,concerned District Development Committees inNepal, the Lumbini Development Trust, variousBuddhist societies, ADB, JBIC, JICA, UNDP, otherdevelopment organizations active in the areas,tourism and transport operators in SASEC and insource markets, custodians and monasteries at thesites, and the local communities. Planning shouldalso involve projects already underway, such as the

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JBIC-supported site development projects in Indiaand the forthcoming ADB-supported infrastructureinterventions at Lumbini in Nepal.

Coordinated market research and ongoingvisitor monitoring is envisaged at each site.Marketing work under this project will complementthe branding and promotion activities envisaged inProjects 1.1 and 1.2. Other project activities willfocus on improving on-site interpretation and visitplanning information, integrated on-site signage,the training of local guides, and tourism awarenesstraining for surrounding villages. The introductionof international best practice in the managementand development of heritage sites and religiouscircuits would be fostered.


The rationale for productive national projectswill be established based on sound market researchand analysis. Some initial project ideas arepresented under Key Area 2. A sensible tourismdevelopment agenda will be introduced into siteand visitor management, with emphasis onimproving accessibility and problem solving.Regional and international market demand will bestimulated, including that in new tourist marketsegments. The visitor experience will be improvedwith a seamless approach to tourism managementand interpretation based on international bestpractice. More tourism benefits will reachsurrounding communities. All stakeholders,including custodians, the wider Buddhistcommunity, and local people will become aware ofthe importance of tourism.

Estimated Cost

The total estimated cost of the project is$2.5 million.


At the fourth meeting of TWG in May 2004, theGovernment of India offered to coordinate TWGinterests with JBIC, an organization with relevantexperience in the Uttar Pradesh Buddhist circuit.JBIC has expressed interest in cooperating with thisproject in collaboration with ADB. Agencies

concerned with conservation and development willbe encouraged to support joint marketing activitiespromoting sustainable management systems.


At the fourth meeting of TWG in May 2004,NTOs agreed that DOT India would lead this project.An India-Nepal Coordination Committee would beformed to facilitate the project. Joint tourismplanning and promotional activities would be ledby DOT India in close consultation with NTB andkey stakeholders such as custodians, Buddhistsocieties, and the tourism private sector of the twocountries.

The Committee’s aim will be to identify specificdevelopment needs linked to proven tourist flowsand joint marketing strategies. A regional TA projectwill be requested jointly of JBIC and ADB. Overseenby the Committee, this project will undertake aseries of tourism planning studies resulting in thepreparation of national development projects atBuddhist sites and associated tourism sites.

JBIC will be encouraged to explore theapplication of its Michi no Eki tourist facilities onportions of the Asian Highway that link theFootsteps of the Lord Buddha sites. UNESCO hasexpressed willingness to be associated with anySASEC project dealing with development wheresustainability is an issue. UNESCO has wideexperience in managing and mitigating the effectsof tourism on sensitive areas.

Project 6.2. Living Buddhism in the Himalaya

Rationale

There is strong consensus in Bhutan, India andNepal supporting a cooperative initiative aimed atheightening awareness of the Living Buddhismattractions and improving the quality of the LivingBuddhism tourism products in the subregionthrough marketing, product development, andtraining. Foremost among the reasons for supportof such an initiative is the desire to attract a broaderspectrum of visitors, both international andregional, and to lengthen the stay of visitors fromcurrent Living Buddhism markets.

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Scope

The focal points of Living Buddhism are thefollowing sites: 15 key pilgrims places inKathmandu Valley and the Nepal Himalaya(Thyangboche, etc.); Dharamshala, base of the DalaiLama; Sikkim (Gangtok, Rumtek, Pemayangtse andTashiding Monasteries, Guru Rinpoche caves,tallest statue, and the sacred lakes, etc.); ArunchalPradesh (Tawang); and the great monasteries ofLadakh and Bhutan. Many sites are spectacular,important from a religious perspective, and heavilyused during festivals and teachings. Currently,Living Buddhism sites attract Buddhist pilgrims anddharma students from all over the world, specialinterest segments such as trekkers, those seekingpeace and well being in Himalayan spas, meditationand yoga courses, and general interest sightseers.

Joint marketing activities by NTOs will attractmore visitors and broaden the current marketsegments, benefiting from the branding andpromotion activities outlined in Projects 1.1 and 1.2.Joint planning for visitor services will involve a widerrange of stakeholders at each site, including NTOs,local authorities, Buddhist societies and custodiansat the sites, UNESCO, other developmentorganizations, tourism operators, and localcommunities.

A subproject to develop codes of conduct willimprove the visitor-host relationship and moreaccurately prepare visitor expectations. Asubproject for training trainers in best practicetechniques will aim at improving the training oflocal guides and site interpreters. Theseinterventions will lead to greater benefits fromtourism by local communities and custodians. Astudy of international best practice in religiouscircuits and heritage sites will assist in thedevelopment of codes of practice for SASEC.

The Namgyal Institute of Tibetology in Sikkimis a model institute in the subregion and will beused as a focal point for project activities such asthe training of guides.


Expected benefits include growth in demand,lengthened stays, and greater awareness of thetourism potential of Living Buddhism sites. New

products and new circuits, carefully segmented tomatch market interests, will be developed andexisting ones improved. Guest-host codes ofconduct will help minimize insensitive behavior andother negative impacts of tourism. Improvedcommunity awareness of the potential benefitsfrom tourism will result in improved care for sitesand pride in shared culture.

Estimated Cost

The estimated cost of the project is $2 million.


Existing NTO budgets may be harnessed forpromotional, coordination, and advocacy activities.Funding will be sought from donor agencies,especially bilateral donors with links to sourcemarkets. The cooperation of airlines and majoroperators interested in Buddhist circuits will besought. International development agencies withproven interests in cultural sites, includingUNESCO, will be approached for collaboration.


At the fourth meeting of TWG in May 2004,NTOs agreed that Bhutan would lead this project.Bhutan will liaise with the Namgyal Institute ofTibetology in Sikkim and prepare a strategy for ajoint campaign to promote Living Buddhismtourism. The strategy will involve individual NTOsundertaking coordinated implementation programsand working with relevant Buddhist associations,custodians, concerned government agencies, andother stakeholders. Development partners will beasked to contribute overarching joint planningstudies. Development agencies with proven skillsin linking cultural issues, community development,and tourism will be approached to foster donorinterest and assist implementation. Guide trainingin cultural interpretation based at the NamgyalInstitute of Tibetology in Sikkim will be a majoractivity. A training scholarship and exchangescheme will be tailored to the needs of thesubregion’s cultural guides and to the objectives ofdonors’ country programs.

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Project 6.3. Buddhist Art and Archaeology inSouth Asia

Rationale

With the current global interest in Buddhism,there is a need to bring South Asia’s lesser-knownBuddhist art and archeology, as well as itsarchitecture, caves and artifacts, to the attention ofworld tourism in a positive way. In addition to thewell-known Footsteps of the Lord Buddha circuit,many other ancient Buddhist sites could bedeveloped and interpreted for visitors. The qualityof visitor services and facilities at SASEC’s Buddhistart and archeology sites needs to improve ifadditional regional and international visitors are tobe attracted.

Joint action is needed, on a subregional basis,to position the ancient Buddhist sites of SASEC sothey appeal to general sightseeing and culturalgroups as well as to pilgrims and other specialinterest groups. Some sites are constrained byaccess, and by the lack of accommodations andvisitor facilities. In all cases there is a parallel needto ensure proper conservation management of siteart and archaeology. Inventory and protectionstrategies need to be developed based oninternational best practice. Where practicable, localcommunities and custodians may be broughttogether in joint, integrated conservation andcommunity development strategies, using tourismas the community development tool. The overallaim of TWG will be to focus planning, advocacy, andcoordination activities on visitor services andfacilities at Buddhist art and archeology sites.

Over the last 3 years UNESCO has beenimplementing a project on Cultural Survival andRevival in the Buddhist Sangha: Documentation,Education and Training to Revitalize TraditionalDecorative Arts and Building Crafts in the BuddhistTemples of Asia. The goal of this project is to buildcapacity among traditional local caretakers,including Buddhist custodians and lay communitymembers, to undertake the preservation ofintangible culture heritage in primarily Buddhistregions. Provided that synergies continue to exist,TWG will implement this project exclusively bycoordinating and encouraging the four NTOs tosupport the UNESCO Project.

Scope

The scope of this TWG project will matchUNESCO’s activities in SASEC under its just-mentioned project for Cultural Survival and Revivalin the Buddhist Sangha. TWG will encourage andsupport UNESCO in its activities in SASEC countries.

TWG will encourage UNESCO to focus on sitesin Bangladesh (Paharpur, Mahastangar, Comila,Mainamati, and Ramu); India—Madya Pradesh(Samchi) and Maharashtra (Ajanta and Ellora);Sikkim (Rumtek, Tashiding, etc.) and Ladakh; Orissa(Khandagiri, Udaygiri, Ratnagiri, and Lalitgiri);Arunchal Pradesh (Tawang); Tripura (Pilak etc.); andin Nepal (Tilaurakot, Niglihawa, Gotihawa,Sagarhawa, Arorakot, Kudan, and Ramagrama).There are also relevant sites in Myanmar, TAR,PRC,Sri Lanka and beyond. It should be noted thatFootsteps of the Lord Buddha sites are not includedhere, but are included in Project 6.1. Similarly, theLiving Buddhism sites of Bhutan and Nepal arecovered in Project 6.2.

TWG will advocate joint planning of visitorservices and facilities at key Buddhist sites. TWGwill seek to ensure the participation of a wide rangeof stakeholders, including NTOs, archaeologicalauthorities, state and district governments,UNESCO, INTACH, museums, trusts, otherdevelopment organizations, tourism operators inSASEC and in source markets, Buddhist societiesand custodians at the sites, and local communities.Advocacy and coordination activities will involveensuring that the tourism agenda is included inplans for development of any site. Joint marketingby NTOs will include coordinated market researchand visitor monitoring at each site, and will benefitfrom the branding and promotion activities inProject 1.1 and 1.2. Sub-themes may evolve—forexample Buddhist caves or architectural themes.Efforts will be made to attract filmmakers, bookpublishers, and the media to cover theseattractions. Other joint activities are likely to focuson improving visitor interpretation, local guidetraining, homestays, handicrafts, and tourismawareness training for custodians and thesurrounding communities. Training activities inlocal communities aimed at enhancing theirbenefits from tourism, and to overcomeaccommodation constraints, will use proven

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ecotourism techniques developed in the SASECregion. Coordinated inventory and preservationstrategies will be advocated.


The project will lead to greater awareness inthe tourism industry of Buddhist art andarchaeological products in SASEC countries, and amore systematic approach to conservation andpreservation of the sites. Local, national, andsubregional pride in historical traditions, culturalheritage, and shared history will be enhanced, aswill visitor experience, tourism flows, and localbenefits. Potential negative impacts of increasedtourism will need to be addressed and minimized.

Estimated Cost

The total estimated cost of the project is$1.5 million.


TWG will join with UNESCO in efforts to attractmultilateral agencies such as UNESCAP, theInternational Commission on Monuments andSites (ICOMOS), and the European Union (EU) toassist. Bilateral donors such as France and Italyhave demonstrated interest in heritagepreservation. The Government of Norway iscurrently assisting UNESCO. Buddhist circuitsource markets such as Japan, Republic of Korea,Taipei,China, and Thailand, Buddhist organizations,other international development agencies, NGOs,trusts (such as INTACH), and museums will be askedto play a part, however small, in this project.


At the fourth meeting of TWG in May 2004,NTOs agreed that India and Bangladesh would leadthis project. DOT India and BPC will liaise withUNESCO and help undertake an assessment ofplanning, marketing, and training needs. Potential

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subproject sites will be identified, giving priority toKey Areas and those with links to tourism flows.This assessment will be used as a prospectus toattract further donor interest. Sites with donor-assisted projects already in place will be asked tocoordinate with UNESCO and TWG. Inventory andpreservation activities will be encouraged throughrelevant archaeological departments. NGOs andINGOs will be asked to assist with tourismawareness and community training activities.

D. Programs Focused on thePrivate Sector


Enabling the Private Sector

Project 7.1. Tourism Investment Fund

Rationale

Lack of finance is not a major constraining factorwithin the tourism industry. Generally, worthyprojects have relatively little trouble in securingfinancing from development and commercial banksand other sources. The Tourism Finance Corporationof India (TFCI) acts in direct support of the industryin India. In India’s North East, the North EastDevelopment Finance Corporation and TFCI providefinancing for individuals, and the North EasternCouncil (NEC) has funding mechanisms for localgovernment. In some cases, however, small andmedium-sized investors have more difficulty insecuring financing, especially if they lack assets ascollateral. This is a systemic problem, not limited tothe tourism industry.

The most obvious need relates to subregionaltourism projects. Regional cooperation initiativesraise special problems, for they entail two or morecountries. Commercial banks may be reluctant toconsider foreign exchange and other risks theseentail, and multilateral lateral financing institutions(MFIs) have no lending instrument that applies

jointly to two or more developing countries. Further,regional cooperation initiatives frequently requirepolicy, regulatory, and other supportive changes bycentral and state governments. Without suchchanges, including infrastructure support, tourisminvestments may yield disappointing returns andfail to be sustainable.

In light of these considerations, variousoptions have been reviewed and assessed inAppendix 2, including:

(i) A SASEC Tourism Investment Fund (TIF), aprivate sector venture capital fundwith minority equity participation bygovernments and MFIs.

(ii) A SASEC Tourism Development Facility, asubsidiary of a bank or other financialfacility in the subregion (possibly the TFCI),supported by a loan from ADB.

(iii) A SASEC Tourism Development Loan fromADB to governments of the subregion,relent to development banks, and in turnto tourism investors.

Neither the Tourism Development Facility northe Tourism Development Loan concepts weredeemed persuasive, in part because they wouldoverlap with existing financing (e.g. developmentbanks). In that a substantial loan from ADB fortourism would compete with other uses, it is notapparent that member countries would favor theseoptions. Further, these options entail directedlending, which runs counter to the private sector asthe driving force for the tourism industry.

The SASEC TIF concept merits furtherassessment and development with potentialinvestors. By pooling the equity of influentialtourism investors in the subregion, and byencouraging equity participation by governmentsand MFIs, the proposed SASEC TIF would helpfinance new investments in tourism facilities,including bankable infrastructure projects. Becauseof the scale and importance of the Fund, it could bepersuasive in encouraging SASEC membergovernments to improve policy and regulatoryfactors critical to expanding the tourism industryon a sustainable and competitive basis. Possibleexpansion of the concept to SAARC would beconsidered.

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Scope

The TIF would be active throughout thesubregion and, when fully established, couldexpand its operations to SAARC member countries.It could commence operations on a relatively smallscale, with initial capitalization set at $20 million,building to $100 million over 5 years, and to afurther $100 million over 10 years. With co-financing, the Fund could be a major factor inhelping to develop the tourism industry in thesubregion.


The TIF is expected to act as a catalytic force infacilitating new tourism investments, includinginfrastructure, and to help create a more positiveenvironment for investment. In these ways, the TIFis expected to contribute to increasing tourismarrivals and extended stays, leading to newemployment opportunities in poor areas, increasedtourism revenues to governments, as well as otherbenefits.

Estimated Cost

The estimated cost of the project is $500,000.


The TIF is expected to be majority owned byprivate investors. Governments and MFIs would beinvited to take equity positions. The initial $500,000is needed to develop the concept and to identifythe founding shareholders.


At the fourth meeting of TWG in May 2004,NTOs agreed that India would lead this project incollaboration with ADB. Further assessment anddevelopment of the concept is required inconsultation with potential investors. Venturecapital experts in the subregion will be tasked todetermine interest in the TIF.

Project 7.2. Public-Private Partnerships

Rationale

Throughout the tourism world, tasks such asdestination marketing are increasingly undertaken bypartnerships between the public and private sectors.The application of this concept to SASEC countrieshas very strong stakeholder support. While onlyNepal has an institutionalized version of a public-private partnership (PPP) in the form of NTB, eachof the other NTOs already has some means of sharingdecision-making with the private sector.

This project idea is based on the notion thatTWG will itself become a model PPP and a championof the PPP cause. It is envisaged that TWG will take anadvocate’s position in ensuring that tourism’s privatesector is not marginalized, that SASEC’s varioustourism institutions are continually strengthened, andthat tourism sector reforms are undertaken. The firstfocus of TWG advocacy will be to ensure that nationaland state governments and their industry partnerssupport the SASEC TDP.

Scope

At the outset, private sector participants willbe invited to TWG meetings. Initially, the best wayto attract the private sector will be to adopt projectsthat have an immediate and positive impact.Ideally, the tourism industries will become long-term partners with TWG. Beyond this, TWG couldpractice the idea of PPP in its projectimplementation modalities, and from time to timeopportunities may arise for TWG to play anadvocacy or brokering role in the formation of newPPP institutions.


PPPs in tourism combine the smart andnimble thinking of the private sector with the powerand responsibility of government. When focused ona task such as destination marketing, a PPP will actwith more confidence and focus than either sectoracting alone.

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Estimated Cost

Total estimated cost of the project is $500,000.


To be discussed between PATA and ADB.


NTOs agreed at the fourth meeting of TWG inMay 2004 that NTB should lead this project, as it isitself a model of PPP. PATA also is an organizationbased on the PPP concept and is frequently anadvocate for this cause. PATA has indicated interestin standing alongside TWG in implementing thisproject.

E. Key Area Programs

1.1.1.1.1. The Role of TWG in KThe Role of TWG in KThe Role of TWG in KThe Role of TWG in KThe Role of TWG in Key Areasey Areasey Areasey Areasey Areas

TWG will maintain a supportive oversight ofnational projects in the Key Areas and promotecross-border planning and coordination. Asummary of the Key Areas is presented in thissection. Appendix 4 contains Key Area TourismDevelopment Concepts and additional detailsabout ideas for national projects.

2.2.2.2.2. KKKKKey Area Program Outlinesey Area Program Outlinesey Area Program Outlinesey Area Program Outlinesey Area Program Outlines

Key Area 1. Bardiya and Suklaphanta to DudwaNational Parks

Program Outline

There is major potential for a tourism circuitbased on wildlife viewing linking the protectedareas of Royal Bardiya National Park and RoyalSuklaphanta National Park in Nepal with DudwaNational Park in India. The circuit also extends toJim Corbett National Park and Nainital. Poor roads,difficult border crossings, and security issues arethe main constraints to development of this circuit.

This circuit potentially offers a chain of premierwildlife viewing opportunities in poor andundeveloped parts of Nepal and India, part of theWWF Terai Arc Landscape Conservation Project.Improved roads and border facilities wouldencourage travel operators to package this circuitwhen security improves.

This is a long-term program. Implementationof national projects is dependent on resolution ofthe current conflict.

Ideas for National Projects

1.1. Dhangadi Airport improvements1.2. Border crossing facilities and wayside

amenities in Far West Nepal1.3. Wayside amenities in Uttar Pradesh

Key Area 2. Buddhist Sites, Lumbini to India

Program Outline

The Footsteps of the Lord Buddha circuit isalready very popular, appealing to many segments ofthe Buddhist pilgrim market. The circuit includes thedestinations of Lumbini, Kapilavastu, and otherassociated sites in Nepal. In India, the circuit includesKushinagar, Nalanda, Rajgir, Bodh Gaya, and Sarnath.

To take advantage of current market growth,the Footsteps of the Lord Buddha circuit needs tobe developed further and positioned as the iconicBuddhist product. This is the key product forpositioning SASEC as the Buddhist Heartland, withthe power to attract the growing market segmentsof international pilgrimage and spiritual visitorsfrom all over the world.


2.1. Road improvements on the circuit in India2.2. Wayside amenities on the circuit in India2.3. Visitor facilities and interpretation in Bihar

and Uttar Pradesh2.4. Improved visitor facilities in Nepal2.5. Bhairawa Airport improvements2.6. Water supply infrastructure improvements

at Lumbini

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Key Area 3. Kanchenjunga (Khangchendzonga),Sikkim and Darjeeling

Program Outline

There is good potential to tap into and expandthe already strong ecotourism flows in Sikkim andDarjeeling by developing cross-border trekking andother tourism linkages between the KCA in Nepaland Khangchendzonga National Park in Sikkim.The opening of Bagdogra Airport as an air hub forthe SASEC subregion, with international andregional connections, has the potential tofacilitate access to Key Area 3 and to positivelyimpact tourism, especially in Sikkim, Darjeeling,Bhutan, and East Nepal.

Coordinated subregional marketing of Sikkimas an ecotourism destination could help restore itspreviously strong international tourism flows.Cross-border treks on the sacred landscape ofMount Kanchenjunga (Khangchendzonga) (8,589meters), shared by East Nepal, West Sikkim, andTAR,PRC, could present a unique ecotourism-adventure product when security improves and borderrestrictions ease. The development of BagdograAirport to international status and improvements atTaplejung Airport would ensure better access. TheKanchenjunga regional ecotourism park concept,linking Nepal, India, and the PRC for a common trans-boundary conservation strategy has the potential oftackling common problems more effectively andhelping to promote controlled tourism for the mutualbenefit of the parties involved.

Figure 7: Key Areas

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3.1. Road improvements and waysideamenities in Nepal

3.2. A program of ecotourism improvements inthe KCA

3.3. An Ecotourism Plan for West Sikkim3.4. A visitor management strategy for North

West Bengal

Key Area 4. East Sikkim (Nathu La) to WestBhutan

Program Outline

Good potential for tourism development isone result of the newly opened Nathu La Road fromSikkim to the Chumbi Valley in TAR, PRC. The cross-border, three-country “Nehru Trek” offers Buddhist-oriented adventure trekking, linking it to therecently opened Ha areas and the existing Samchito Paro trek in western Bhutan. Permit constraintsneed to be overcome.

In the longer term, there is exciting potentialfor reopening the historic trade trail to create a newthree-country trek, first made famous by the latePrime Minister Nehru (see Project 5.1).


4.1. Tourism Awareness Program in Sikkim4.2. Wayside amenities in Sikkim

Key Area 5. Manas Protected Areas

Program Outline

The World Heritage Site, the Manas nationalparks on both sides of the border between Indiaand Bhutan, has excellent tourism potential. TheManas protected areas could be a showcase forthe subcontinent’s wildlife tourism. Currentsecurity constraints need to be overcome. Openingthe land border at Gelephu would createecotourism circuits within Bhutan (Zhemgang).Manas has the potential to be a world ecotourismmodel.

Access from Bhutan is either by road viaTrongsa, or via rafting trips down the Mangde Chhuand Damgme Chhu rivers. Elephant-back safaris canbe arranged from Tingtibi with potential for crossinginto the Assam grasslands in India to view wildlifethere. Boat trips and river cruises could join theBrahmaputra River, offering river recreation andfishing. Well-planned, sustainable tourism in thisKey Area has the potential of providing alternativelivelihoods for current poachers, who could becomeinstead guardians of the protected area. Otherbenefits include handicrafts. There is a rich traditionof cane culture and locals use cane art as alivelihood. Sustainable management of caneharvesting and the introduction of better design,quality control, and marketing of cane productscould benefit surrounding communities.


5.1. A joint Ecotourism Strategy for the Manasprotected areas in Bhutan and India

5.2. A handicraft program based in India

Key Area 6. Sundarbans Protected Areas

Program Outline

The Sundarbans mangrove forest, a WorldHeritage Site, may be visited from both Bangladeshand India. Strong flows of domestic visitors comefrom Dhaka, and particularly from Kolkata.Opportunities exist for joint marketing, the sharingof responses to conservation management issues,and careful introduction of new ecotourism circuitscombining the two countries.

Tourism can play an important role as a tool forsustainable livelihood and can reduce currentdestructive dependency on the fragile environment. Inthe Sundarbans, more involvement of the localcommunity in tourism activities is essential to reducecurrent unsustainable pressure on the forest. Moredirect and indirect employment needs to be createdthrough tourism. Possibilities include local guides forriver cruises, bird and wildlife viewing, honeycollection, and services in tourist camps. To ensurethat local communities enjoy the benefits of tourism,they require training and other efforts to build

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IMPLEMENTATION ARRANGEMENTS

capabilities. Tourism development in the Key Areaoffers exciting opportunities for cooperation andexperience-sharing by conservation managers, NGOs,and the tourism industry at the proposed STF.


6.1. Joint Sundarbans Ecotourism Strategy6.2. Village tourism homestay and jungle camp

program in Bangladesh6.3. Community-managed conservation

interpretation center in the IndianSundarbans

6.4. Community-managed conservationinterpretation center in the Bangladesh

Sundarbans

Key Area 7. Paharpur to Siliguri and Bagdogra

Program Outline

The land border between India and northernBangladesh at Banglabandh means that theBuddhist circuits of Paharpur can be promoted fromthe north using the Bagdogra and Guwahatigateways. The lack of tour operator awareness, poorroads, limited accommodations, and security arethe constraints to this potential.

Paharpur monastery and its surrounding sitesare iconic products in the positioning of the SASECsubregion in Buddhist art and archaeology marketsegments. They provide insight into ancientBuddhist architecture and culture. Opportunities inadventure and ecotourism circuits will open up withthe link to the PRC via the Nathu La. Potentialconnections between the Sundarbans andDarjeeling, Sikkim, TAR, PRC, and Bhutan areincluded in these opportunities. As a response tothe West Bengal transport corridor south fromBagdogra to Kolkata, it is desirable for Bangladeshto develop a tourism corridor linking its ecotourismand Buddhist sites.


7.1. Wayside amenities between Bagdogra andPaharpur to Dhaka

7.2. Paharpur Monastery excavations

Key Area 8. Mainamati to Pilak, Tripura

Program Outline

Developing the Mainamati to Pilak Key Area willestablish a new Buddhist circuit product in SASEC.There is also ecotourism potential in some of theunique forests in both India and Bangladesh thatprotect the endangered Chashma, or spectacledmonkey. To develop the Mainamati to Pilak BuddhistCircuit, cooperation will be needed between theGovernment of Bangladesh, the Government of India,and the State Government of Tripura. Marketing andpromotion is also required, and permits and cross-border protocols need to be rationalized. The privatesector can be encouraged to developaccommodations at Agartala. Some excavated sitesat Mainamati are located in a cantonment area andneed to be opened to the public.


8.1. Excavations at Mainamati in Bangladesh8.2. Visitor amenities at Mainamati in

Bangladesh8.3. Visitor amenities at Pilak, Tripura in India

Key Area 9. East Bhutan to Arunchal Pradesh

Program Outline

The opening of the land border east ofTrashigang and Sakteng at the eastern end of theGreat Himalayan Trail will create new adventuretrekking links with Arunchal Pradesh (TawangMonastery and Bomdila). Community-based stylesof tourism will bring benefits to remote easternBhutan and India’s North East. These opportunitieswill be further extended by re-opening theSamdrup-Jongkhar road crossing.

When border conditions and security issueschange, this area offers new adventure trekking,ecotourism, and Buddhist circuit possibilities forSASEC. Once border agreements are in place, trekroutes in currently unexplored areas, maps, guides,and publicity information will need to be providedin partnership with resource managers, localauthorities, and the private sector. Tourism has the

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potential of providing supplementary livelihoodsfor the benefit of people in these remote areas. Thearea is fragile, and careful planning andmanagement will be required to ensure thatecotourism is used as a development tool to protectits natural and cultural resources.


9.1. Adventure Trekking

Key Area 10. India’s North East States

Program Outline

Good opportunities with a strong pro-poorrationale are available to promote the “unexplored”North East of India. The ecotourism products of theNorth East, initially in Assam, Arunchal Pradeshand Nagaland, will produce some of the iconicfeatures of SASEC tourism. With particularemphasis on cultural, ethnic, and adventureproducts, and careful recognition of their protected-area status, these little-known destinations requireimprovements in tourism awareness, air linkages,and security.

The North East has the potential to play aleading role as the premier ecotourism destinationin India. Building on Sikkim’s success, andexploiting resources made available by thedevelopment subsidy from the Government ofIndia, the North East can be developed andmarketed in an integrated manner. This will requireaggressive marketing and an awareness campaignsupported by the Government of India. It will alsorequire the development of organizational linkswith the private sector to ensure cooperation. Travelfacilitation and capabilities within the region willneed great improvement if the tourist inflow is tobe sustained.


10.1. North East Marketing Strategy and ActionPlan

10.2. Wayside amenities and tourist roadimprovements

10.3. Village homestay program in the NorthEast

10.4. Handicrafts program in the North East10.5. Inventory of cultural and natural sites10.6. Trekking opportunities study

Key Area 11. Kathmandu Hub

Program Outline

Kathmandu is used as a hub by many airlinesin the subregion. This, coupled with Nepal’s focuson ecotourism and Buddhist circuit product, andthe future potential for growth in regional airlines,warrant special attention to the Kathmandu Valleyas a key area.

For Kathmandu to be positioned as an air hublinking the SASEC subregion’s major ecotourismand Buddhist circuits, air safety and the confidenceof air travelers in Nepal’s carriers need to beimproved. South Asian Host training to improve thevisitor experience at Kathmandu’s international anddomestic air terminals would also be desirable.

Restoring the major World Heritage Sitesattractions of Kathmandu Valley to internationalrecognition will support Nepal’s branding.


11.1. Air traffic safety project11.2. Visitor Services Management Plan for

World Heritage Sites of Kathmandu

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IMPLEMENTATIONARRANGEMENTS

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A. TWG and Its DevelopmentPartners

1.1.1.1.1. Guiding PrinciplesGuiding PrinciplesGuiding PrinciplesGuiding PrinciplesGuiding Principles

a. Cooperation as a Process

Regional cooperation is a process that requireslong-term commitment. TWG will regularly updatethe SASEC Tourism Development Framework. TheDevelopment Matrix and Action Plan also will bemaintained as a summary of the Framework. Byupdating and redistributing these formsperiodically, TWG will help SASEC tourismstakeholders see how their individual actions cancomplement TWG’s programs and becomplemented by the actions of others.

b. Consultation and Inclusion

Tourism authorities, the private sector, andpotential development partners have been deeplyinvolved and widely consulted during thepreparation of this Plan. The Planning Team hasendeavored to widen the range of stakeholders toinclude, for example, resource managers and privatesector tourism operators. It is envisaged that TWGwill continue the process of inclusion andconsultation. Major tourism stakeholders,especially those from the private sector, should beroutinely invited to attend TWG meetings.

c. Ownership

It is essential that TWG is not dominated byany one stakeholder or group of stakeholders. Inparticular, great care should be taken to avoidimplementation of the Plan that is donor-driven.Just as programs and projects already included inindividual country tourism agendas were includedin this Plan, so TWG should continue to ensure thatall its activities remain immediately relevant tomember countries. This will encourage membergovernments to take ownership of the SASECTourism Development Framework, anddevelopment partners to play a supporting role.

d. Maintaining Momentum

TWG already experienced difficulty inmaintaining momentum between meetings, aninherent problem in subregional cooperation.Unlike governments and government institutions,institutions established for purposes of subregionalcooperation usually do not possess the means todirectly implement and enforce their decisions. ForTWG projects, an NTO Project Leader has beenassigned to each project and, where possible, atleast one development partner has been designatedfor assistance. TWG must give particular attentionto project implementation arrangements to ensuresuccessful implentation.

2.2.2.2.2. Institutional IssuesInstitutional IssuesInstitutional IssuesInstitutional IssuesInstitutional Issues

a. Ministerial Leadership

Under the auspices of the wider SASECProgram, Tourism Ministers and Secretaries shouldmeet on a regular basis to review progress inimplementing the SASEC Tourism DevelopmentFramework, and to consider modifications or newdimensions of the Plan. The leaders of tourism inall four countries need to fully engage with TWGand take ownership of its programs.

b. TWG Meetings

The location of TWG meetings should rotatearound the subregion in an order agreed by TWG.In the short term, meetings will be convened withassistance from an ADB Secretariat based in Manila.The host NTO will arrange the meeting venue, assistwith accommodations, and provide associatedhospitality. The host government will chair theopening and closing sessions of the meetings ithosts.

c. SASEC Focal Persons

Each NTO has assigned one or more FocalPersons to be the point of contact for all SASECmatters. All SASEC correspondence to NTOs shouldbe directed through, or at least copied to, the FocalPersons. In order to get implementation of the TDP

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underway, in the immediate future ADB willtelephone regular progress reports and circulatesummary e-mails to Focal Persons.

d. Project Nodal Persons

Project Nodal Persons will be assigned at TWGmeetings. In some cases, a project may require aNodal Person in each NTO to coordinate itsimplementation. At the fourth meeting of TWG inBhutan on 26 May 2004, for example, four Nodalpersons where assigned to Project 1.1. JointMarketing to Brand and Promote Ecotourism andBuddhist Circuits. Project Nodal Persons will copyall correspondence to their Focal Person.

e. Coordination with other SASEC WorkingGroups

TWG should coordinate with the SASECTransport Working Group and the SASECEnvironment Working Group, in order to ensurepromotion of complementary activities and to avoidoverlap. TWG will support environmental programsrelated to tourism. TWG will foster programs thatcomplement and generate demand for transportinfrastructure. TWG will be an advocate for thetourism sector’s interests when transport prioritiesare decided. Matters associated with large-scaletransport infrastructure will be referred to theSASEC Transport Working Group.

f. SASEC Tourism Secretariat

TWG has decided it is premature to establisha full-fledged SASEC secretariat at this juncture. ThePlanning Team endorses this view. TWG decisionsat its third meeting in this regard are reflected inthe Tourism Development Plan. Coordination willbe achieved through the combined efforts of NTOProject Leaders, the Focal Persons, and NodalPersons in each country, and one or moredevelopment partners. Once TWG has establisheda track record demonstrating success, the NTB’sproposal for a Secretariat and Tourism Center inKathmandu should be re-examined.

3.3.3.3.3. The Role of Development PThe Role of Development PThe Role of Development PThe Role of Development PThe Role of Development Partnersartnersartnersartnersartners

a. General Criteria for aDevelopment Partner

Beyond attendance at TWG meetings,individual development partners will define theirown role and level of commitment. The bestpartnerships are those based on convergence ofinterests. Thus the ideal development partner willbe one whose interests are served byimplementaion of the projects in the TWGFramework. While the TWG agenda will not bedonor-driven, development partners neverthelesswill be encouraged to be explicit about their ownagendas in regard to SASEC tourism, so thatcoinciding interests can be explored.

Development partners will be invited tosuggest projects that fit in the TWG agenda. Thisprocess will function best when a partner has beenassociated with TWG for some time, and projectideas derive from full knowledge of TWG activities.There is room at TWG meetings for implementingagencies as well as funding agencies. An importantfunction of TWG will be to facilitate the convergenceof interests of funding and implementing agenciesto produce good project ideas compatible with theSASEC Tourism Development Framework.

b. Central and State Authorities

Central and state authorities will be welcomeas development partners. As such they need a clearunderstanding of the essential supportive role theyplay in designing, refining, and implementing theTDP. Public sector responsibilities in tourism rangefrom the functions of government tourism agenciesto regulating tourism and managing natural andcultural resources. Public sector provision oftransport linkages, urban planning, and essentialservices also support the tourism sector. Carryingout these responsibilities in an effective andefficient manner is critical to strengthening thefoundations for tourism, on which the private sectorbuilds. TWG will encourage clarification of therespective roles of the public and private sectors intourism promotion, facilitation, and productdevelopment.

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Included in the SASEC Tourism DevelopmentFramework are 11 national programs that willrequire careful planning and management bynational and state agencies. Community-basedtourism will be important for the delivery of pro-poor benefits of tourism. Jobs, incomeopportunities, and the revenue from tourism needto accrue locally, providing community memberswith the incentive and opportunity to manage theirown resources. Sustainable tourism means thattourism facilities must be maintained andcontinue to deliver benefits. Implementation ofthe Tourism Development Framework will requiredecision-making structures and lines of authoritythat reach to the most senior levels. Some projectsin the Tourism Development Framework havefundamental implications for the way individualgovernments address tourism development. Thegovernments of SASEC countries need to bewilling to experiment with new approaches.

c. Private Sector Organizations

The private sector is a core developmentpartner. Organizations representing private sectorinterests can play a very important advisory role forTWG. Major industry players, such as airlines andhotel chains, will be welcome. As the SASECtourism agenda takes shape, companies will find itworthwhile to maintain close contact with TWG.This is what happened in GMS.

The private sector plays the dominant role inproviding services for tourists, and can help financeinfrastructure facilities. Private sector businesses,especially small and medium enterprises, provideguides, accommodations, transport, restaurants,entertainment, and shopping services. SASECcountries need to recognize the importance of theprivate sector and encourage its participation atTWG meetings.

TWG will champion the cause of partnershipsbetween the public and private sectors for tourismplanning and development. TWG will seek to use orcreate such partnerships for the identification andimplementation of its projects. TWG will favorprojects that have strong backing from the privatesector, especially those where the private sectorparticipates in implementation.

The key to attracting private sectordevelopment partners is projects perceived asrelevant and yielding immediate benefits. TWG willseek to have such projects underway at all times.

d. The Donor Community

The donor community is the third majordevelopment partner. As discussed previously,official development assistance to SASEC countrieswas more than $4 billion in 2003. Most of thisassistance was in the form of loans, but aconsiderable amount was in the form of grants.INGO assistance was also very considerable,especially in the Himalayan region. Traditionally,tourism has not been a priority sector indevelopment assistance. Only recently havedevelopment agencies realized the great potentialof the sector for employment, income generation,and poverty reduction.

The Tourism Development Framework hasbeen designed as a series of separate but relatedprograms. This will facilitate, among other things,participation by development agencies withspecialized expertise and interests. The frameworkhas been prepared after consultation with manydevelopment agencies. Their participation in thefurther refinement and elaboration of theFramework should be encouraged. Broad-basedsupport by many development agencies will berequired for the TDP to succeed.

As part of its strategy of inclusion, TWG willencourage donor agencies to identify thoseelements of the Framework they can best support,and encourage their input in project design andimplementation. TWG will encourage donors towork closely with the governments, communities,and private sector representatives most directlyassociated with these elements, and to seek outconvergent interests. The Development Matrix andAction Plan is a tool that will assist all parties tokeep track of projects and participants.

The financial requirements for the proposedDevelopment Framework are somewhat flexible.Aggregate public sector financial requirements willapproximate $75 million over a 5-year period, whileprivate sector investment will need to be about $100million over a 10-year period. Many of the projects

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are small scale and highly suitable for INGOsupport. Other projects are moderate in size andsuitable for support by bilateral donors. Largerinfrastructure projects could be supported by loansfrom MFIs.

NGOs and donor agencies will first have to beconvinced of the merit of the SASEC TourismDevelopment Framework. SASEC NTOs should beat the forefront in advocating support of theFramework by those agencies active in their country.

B. Mobilizing Resources

1.1.1.1.1. Indicative Financial RequirementsIndicative Financial RequirementsIndicative Financial RequirementsIndicative Financial RequirementsIndicative Financial Requirements

As should be clear from the description of theprograms and projects included in the TourismDevelopment Framework, there is both a public andprivate dimension to resource mobilization. At thisjuncture, however, it is difficult to quantify what isrequired and what is possible in terms of resourcemobilization. What follows is an indicative outline.

For Programs 1 to 7 and the 23 projectsincluded in these programs, it is estimated that theoverall resource requirement will be approximately$25 million over a 5-year period. For the 11 Key Areaprograms, an aggregate amount of $50 million isestimated, again over a 5-year period, forinfrastructure, for upgrading sites, and for otherrequirements. In total then, resource mobilizationrequirements will approximate $75 million. Abreakdown by program and project is shown inTable 21.

As noted in Table 21, many projects entail onlysmall financial requirements, suggesting they couldbe implemented by SASEC governments (nationaland state) in partnership with the donor communityand the tourism industry. Creating Bagdogra Airportas an international hub, for example, is simply aquestion of authorization; no new infrastructure orother upgrading is required. Similarly, small-scalepublic infrastructure investments—for such thingsas historical site preservation, water supplysystems, essential road and airport improvements,helipads, highway amenities, campsites, and

trails—are required along the Asian Highway andto develop the Buddhist circuits and ecotourismprojects.

Separate from and additional to the resourcerequirements shown in Table 21 are investmentsthat can be expected to be met by the private sector,such as for the provision of tourism-relatedfacilities—e.g. refueling and repair stations, hotels,motels, restaurants, mini groceries, shops, andrecreation centers. This investment is assumed toamount to about $10 million a year over the next 10years.

The proposed SASEC Tourism InvestmentFund (TIF), discussed in more detail in Appendix 2,will help finance new investments in tourismfacilities. It will also work with governments for theimprovement of infrastructure facilities and thepolicy and regulatory environment related totourism. Initial support to establish the TIF isestimated at $500,000 to engage a team of venturecapital experts drawn from the subregion. Theseexperts will develop the concept more fully anddraw together the founding shareholders. Once fullyoperational and capitalized, the TIF may be able tomobilize some $200 to $300 million in private publicsector financing for tourism-related investments.Co-financing could futher augment this amount.Initially, of course, the scale of resourcemobilization by the TIF would be much moremodest.

2.2.2.2.2. Marshaling Financial Support by ShowingMarshaling Financial Support by ShowingMarshaling Financial Support by ShowingMarshaling Financial Support by ShowingMarshaling Financial Support by Showingthe Benefitsthe Benefitsthe Benefitsthe Benefitsthe Benefits

Resource mobilization should be facilitated bythe strong economic and financial returns and thepro-poor benefits expected from the TDP.

a. Economic Return from SubregionalTourism Initiatives

Applying ADB Guidelines for the EconomicAnalysis of Projects, the economic return from theproposed subregional tourism initiatives isestimated to be in the order of 35%, or well abovethe social opportunity cost of capital.7 The high rateof return reflects the following:

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Table 21: Tourism Development Plan Program and Project Financial Resource Requirements($ million)

Program Estimated Cost

Generic ProgramsProgram 1. Coordinated Marketing

Project 1.1. Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits 5.00Project 1.2. Regional Marketing with SATTE 1.00Project 1.3. Harmonizing Arrival Statistics 0.20Project 1.4. Events Calendar 0.05

Program 2. Enhancing Product QualityProject 2.1. Product Standards and Industry Codes of Conduct in Ecotourism and

Buddhist Circuits 1.00Program 3. Facilitating Travel

Project 3.1. Eastern Himalaya Caravan 0.10Project 3.2. Bagdogra Gateway and Hub Planning Study 0.10Project 3.3. Reducing Impediments to Subregional Travel 0.25Project 3.4. Asian Highway Improvement Advocacy 0.25

Program 4. Developing Human ResourcesProject 4.1. Encouraging APETIT Activities in SASEC 1.00Project 4.2. South Asia Host Program 0.50Project 4.3. Training for Travel Media 0.05Project 4.4. Project Management Training for NTOs and LTOs 0.50

Product-Focused ProgramsProgram 5. Developing Ecotourism Based on Nature and Culture

Project 5.1. Integrated Project on Trekking in the Himalaya 2.50Project 5.2. Integrated Project on Ecotourism in Ganga-Brahmaputra 2.00Project 5.3. Integrated Project on Adventure Tourism in South Asia 2.00Project 5.4. South Asia Sustainable Tourism Forum 1.00Project 5.5. SASEC Integrated Product Development Plan for Ecotourism 0.50

Program 6. Developing Buddhist CircuitsProject 6.1. Footsteps of the Lord Buddha 2.50Project 6.2. Living Buddhism in the Himalaya 2.00Project 6.3. Buddhist Art and Archaeology in South Asia 1.50

Programs Focused on the Private SectorProgram 7. Enabling the Private Sector

Project 7.1. Tourism Investment Fund 0.50Project 7.2. Public Private Partnerships 0.50

Sub-Total Programs 1-7 25.00

Key Areas ProgramsKey Area 1. Bardiya and Suklaphanta to Dudwa National ParksKey Area 2. Lumbini to India Buddhist SitesKey Area 3. Kanchenjunga to Sikkim and DarjeelingKey Area 4. North East Sikkim (Nathu La) to West BhutanKey Area 5. Manas Protected AreasKey Area 6. Sundarbans Protected AreasKey Area 7. Paharpur to Siliguri and BagdograKey Area 8. Mainamati to Pilak, TripuraKey Area 9. East Bhutan to Arunchal PradeshKey Area 10. India’s North East StatesKey Area 11. Kathmandu Air Hub

Sub-Total for Key Areas 50.00Total 75.00

SASEC = South Asia Subregional Economic Cooperation, SATTE=South Asia Tourism and Travel Exchange, APETIT=Asia Pacific EducationalTraining Institute for Tourism, NTO = national tourism organization, LTO = local tourism organization.

Source: Tourism Development Plan Study

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3 Length of stay and daily tourist expenditures were held constant, in 2003dollar terms, in the case of expenditures, throughout the projection period.Length of stay is already high, reflecting high VFR visits, while dailyexpenditure averages have been depressed by erosion of the high-endmarket. The average spending per foreign tourist per day in 2002 was $93 forBangladesh, $180 for Bhutan, $108 for India, and $63 for Nepal. On aweighted average basis, expenditure per day in the subregion is $78.

• The increase in tourism arrivals prompted bythe subregional initiatives. The analysis isbased on the assumption that the combinedeffect of Programs 1 to 7, the 11 national KeyArea programs, and the Tourism InvestmentFund lead, over a 10-year period, to a significantincrease in tourism arrivals in the subregion.

• As shown in Table 22, subregional initiativesare expected to boost the annual growth ratein tourism arrivals to 7.5% by 2014, versus a 6%growth rate in the absence of such initiatives.(WTO projects that tourist arrivals in South Asiawill grow by 6.2% annually to 2020, comparedto 4.1% worldwide).

• The difference in the growth rates between the“with TDP” and “without TDP” is small at first,reflecting the fact that it takes time to finalizeand implement subregional initiatives.Programs 1 to 7 and the national area programsare assumed to be phased in over a 5-yearperiod, while the TIF is expected to becomefully operational and capitalized over a 10-yearperiod. In parallel to the latter, private sectorinvestment of $10 million annually is assumed.Nonetheless, by 2014 the cumulative increasein the number of tourists to the subregion as aresult of the initiatives could be almost 740,000.Further, the incremental number of touristswould continue to mount beyond 2014.

• Political stability and continued rapideconomic progress will be vital to realizingthese growth rates. SASEC countries haveambitious targets and the growth ratesassumed here are slower than these targetswould imply, indicating conservativeprojections. After 2014, it is assumed thatgrowth in tourism arrivals will moderatesomewhat.

• The growth in tourism arrivals generates jobsand additional spending, raising incomes andhelping to reduce poverty. Additional jobs inthe tourism sector create additional jobs inother sectors (e.g. agriculture, construction,handicrafts), resulting in a multiplier effect.

Unemployment and underemployment in thesubregion is high, reducing the real economiccost of labor and increasing the economic valueof job benefits.

• As shown in Table 23, it is estimated that overthe period to 2014 the Tourism DevelopmentPlan would generate about 265,000 additionaljobs (direct, indirect, and seasonal) in tourismand related industries. By 2014, the TDP wouldresult in 135,000 incremental jobs annually.

• The average cost per job created would be lessthan $700. Since the bulk of costs are borne bythe private sector, the average cost to the publicsector per job created would be less than $300.

• Other effects of the subregional tourisminitiatives could include increased length ofstay and increased daily tourist expenditures.On average, foreign visitors to the subregionspend on $78 per day and stay 17 days, for atotal expenditure per tourist visit of almost$1,326. Even holding these factors constantover the projection period, tourism expenditurein the subregion is projected to increase by$280 million annually by 2014.8

• Increased tourism results in increased revenuesto national and state governments. About 15%of the $1,326 average expenditure per foreignvisitor to the subregion accrues to national andstate governments through various forms oftaxation (value-added tax [VAT], hotel taxes,visa and trekking fees, airport landing fees, etc.).Conservatively, by 2014 approximately $40million in increased revenues should accrueannually to national and state governments inthe subregion. By some estimates, the benefitto governments would be as high as 20%, inwhich case more than $50 million annually inadditional revenues would result from theincremental tourism arrivals to the subregion.

• Importantly, Increased tourist arrivals wouldalso add to foreign exchange receipts, ofrelevance to maintaining macroeconomicstability.

7 Twelve percent in real terms is the rate used generally by ADB in evaluatingthe economic viability of projects. The social opportunity cost of capital maybe as low as 10% if, as in the case of the TDP, there are substantialunquantifiable economic benefits associated with the project).

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Table 23: Incremental Employment Generation in the SASEC Subregion by 2014(Number of jobs)

IncrementalIncrementalIncrementalIncrementalIncrementalWithout TDPWithout TDPWithout TDPWithout TDPWithout TDP With TDPWith TDPWith TDPWith TDPWith TDP EmploymentEmploymentEmploymentEmploymentEmployment

Direct Tourism Employment in 2014a 744, 730 804,877 60,147

Indirect Employment in 2014b 930,912 1,006,096 75,183

Total Direct and Indirect Employment in 2014 1,675,642 1,810,973 135,330

Total Cumulative Employment Generation 2005-2014 265,000

SASEC = South Asia Subregional Economic Cooperation, TDP = Tourism Development Plan, VFR = Visiting friends and relatives.a Based on subregional data, it is assumed that 3.5 foreign tourist arrivals result in one additional job in the tourism industry. Domestic

and intra-regional tourism have a much lower employment impact (reflecting the high degree of VFR travel and low expenditures).b Based on subregional data, it is assumed that the direct to indirect emloyment multiplier effect is 1.25. This takes account of leakage

(about 50%) resulting from imports for tourist goods, profit transfer, expatriate labor earnings, and other factors.

Source: TDP Study

Table 22: Projected Growth in Tourism Arrivals in the SASEC Subregion

IncrementalBase Case Base Case Increase With TDP Increase inIncrease (No. Tourism with TDP (No. Tourism Tourism

Year (%) Arrivals) (%) Arrivals) Arrivals

1995–2003 3.202005 5.10 1,596,259 5.25 1,598,537 2,2782006 5.20 1,679,264 5.50 1,686,457 7,1922007 5.30 1,768,265 5.75 1,783,428 15,1632008 5.40 1,863,752 6.00 1,890,433 26,6822009 5.50 1,966,258 6.25 2,008,586 42,3282010 5.60 2,076,368 6.50 2,139,144 62,7752011 5.70 2,194,721 6.75 2,283,536 88,8142012 5.80 2,322,015 7.00 2,443,383 121,3682013 5.90 2,459,014 7.25 2,620,529 161,5142014 6.00 2,606,555 7.50 2,817,068 210,513

Cumulative Incremental Increase in Tourism Arrivals Resulting from TDP 738,627

SASEC = South Asia Subregional Economic Cooperation, TDP = Tourism Development Plan.Source: TDP Study

• Properly designed and implemented,subregional tourism initiatives will generateyet further economic benefits, such as culturalbenefits (from protection of historic sites) andenvironmental benefits (from more

sustainable use of national parks and protectedareas). Importantly, improvements in tourismfacilities and services designed to attractgreater numbers of foreign and regionaltourists will also induce greater domestic

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tourism. Cultural, environmental, and othersuch benefits are difficult to quantify and havenot been included in the economic analysis.

• Sensitivity analysis shows that the finding of ahigh economic return is most vulnerable to theassumed increase in tourism arrivals, and tothe degree of delay in implementing theproposed programs and projects.

A more detailed discussion of the economicanalysis is available in Appendix 3.

b. Financial Return from SubregionalTourism Initiatives

Again, at this stage of project identification itis not possible to do a project-by-project financialanalysis. Rather, an indicative financial internal rateof return (FIRR) has been calculated for the TDPcollectively. Key assumptions include:

• A time frame of 20 years.• Incremental tourist receipts and costs

expressed in constant prices.• Indictive infrastructure investment costs,

excluding price contingencies and interestduring construction or upgrading. Public sectorinfrastructure investments are assumed to bedistributed over the 2005–2009 period, whileprivate sector investment in tourism facilities($10 million annually) is distributed evenly overthe 2005–2014 period.

• The weighted average real cost of capital isassumed to be 5%, in real terms, as per theGuidelines for the Financial Governance andManagement of Investment Projects Financedby ADB. Following these guidelines, the realcost of capital of each component of theproject’s capital structure is calculated, afterwhich a minimum rate test is applied. If thefinancial cost of capital of any component isless than 4%, then 4% is used in its place.Therefore, the weighted average cost of capital(WACC) should not be less than 4%. As it wasnot possible to do a project-by-project analysis,the WACC was assumed to be 5%. The rateabstracts from inflation but includes a country-risk element.

The estimated FIRR is approximately 16%, ormuch higher than the weighted average cost ofcapital. The overall Plan, therefore, should be highlyattractive to the public and private sectors.

The sensitivity analysis again shows thecritical relationship between Plan implementationand incremental growth in tourism arrivals. It isvery difficult to evaluate the assumed relationship(1.5 percentage points by 2014); survey work andfurther analysis may be desirable to test therelationship. As in the case of the economicanalysis, the length of stay and touristexpenditures per day were held constant at the2003 levels. Clearly, increasing these significantlyincreases the FIRR.

A more detailed analysis of the financialreturns of TDP is provided in Appendix 3.

c. Pro-Poor Benefits

Tourism is a labor-intensive industry andshould be an area of comparative advantage for thesubregion, contributing importantly to povertyreduction. If, as expected, subregional cooperationin tourism promotion, facilitation, and productdevelopment leads to a significant increase intourism, the income and employment effects willalso be significant.

In addition to the direct employment effects(60,000 incremental jobs in tourism by 2014), theindirect employment effects would more thandouble the job benefits. Proactive measures will beneeded to help ensure this outcome. For example,farmers in the region will need to respond toincreasing demand for high quality meat, poultry,eggs, fish, fruit, and vegetables. Market informationand extension services will be important in makingthe connection between increased tourism and newagricultural opportunities.

The tourism sector, especially trekking andmountaineering, provides economic opportunities forlandless and marginal farmers’ households along thetourism value chain: porter, construction, brick and stonemaking, wood processing, handicraft, employment inrestaurants and guesthouses, small-scale commercialvegetable, potatoes and livestock (footnote 3).

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Strategies to maximize linkages with otherlocal industries (e.g. construction, handicrafts, andgarments) are needed to ensure the benefits oftourism are shared widely.

The poor should be major beneficiaries of theTDP, in part because it will help reduceunemployment and underemployment in thesubregion. Unemployment in West Bengal is 15%,and 8 to 10% in Assam, Bihar, and some otherNorth, East, and North East States of India.Underemployment is serious throughout thesubregion, including, Bhutan, contributing to lowlabor productivity. Per capita incomes in the EasternHimalaya average less than $300, and half thepopulation lives on less than $1 a day. As notedpreviously, however, per capita incomes inpurchasing power parity terms are five to six timeshigher than when expressed in US dollar termscalculated on the basis of exchange rates.

The combined direct and indirect employmenteffects of subregional cooperation in tourismpromotion, facilitation, and product developmentwould contribute to lowering the number ofunemployed. However the number of unemployedis very high over the projection period, hence thecontribution of the TDP to lowering unemployedoverall will be marginal. But the TDP would slowthe growth in the number of unemployed—by 5%by 2014, and by 10% by 2024. The national areaprograms outlined in the TDP encompass some ofthe poorest inhabitants of the subregion. Further,the contribution of increased tourism to nationaland state government revenues will help strengtheneducation, health, and other services fundamentalto breaking the poverty cycle. In these and otherways, increased tourism is expected to play animportant role in poverty alleviation.

3.3.3.3.3. Funding OptionsFunding OptionsFunding OptionsFunding OptionsFunding Options

a. National and State Budget Resources

As noted earlier, many of the projects includedin Programs 1 to 7 of the Tourism DevelopmentFramework are modest in scope and scale. Nationaland state governments, in cooperation with thetourism industry, should be able to implementthese relatively easily. Examples include jointmarketing, harmonization of arrival statistics,

support for the Eastern Himalayan Caravan, theSouth Asian Traveler facilitation system, and theSouth Asia Host Program. Components of thenational area programs should be amenable to costrecovery.

Public infrastructure investments included inthe TDP pose a greater challenge, especially in lightof the difficult fiscal circumstances of SASECcountries. The combined fiscal deficit of the Centraland State Governments in India was 10% of GDP in2002 and 2003. The Central Government deficit in2003 was 4.5% of GDP.9 Despite strong economicgrowth, revenues have lagged and the quality ofexpenditure has weakened.10 The situation in theNorth, East and North East States of India isparticularly difficult, prompting the Government ofIndia to introduce new industrial packages andother support. The North East DevelopmentFinance Corporation is the primary financialinstitution established for financing developmentin the North East of India. Tourism is included in itslending portfolio, and it has also focused onregional cooperation for development of the region.

Nepal’s situation has been badly affected bythe insurgency and political disturbances. Despitethis, however, its fiscal position is relatively strong.Revenues have increased due to VAT and customsreceipts, while expenditures have dropped becausedevelopment expenditures for health, water, power,and other services have dropped sharply due tosecurity problems. Nepal’s fiscal deficit is currentlyabout 3% of GDP.11

Bangladesh’s fiscal position has improvedconsiderably over the past 2 years, reflecting bettercontrol of expenditures, increased revenues, theclosure of loss-making state enterprises, and anoverall economic growth rate approaching 6%.12

Progress on the economic front has been strong.Still, the fiscal deficit is about 5% of GDP and greatcare must be exercised to maintainmacroeconomic stability.

Bhutan’s fiscal deficit as a percentage of GDPis also in the 5% range despite strong revenues (18%of GDP), reflecting electricity exports to India.

9 UNESCAP. 2004. Economic Survey. Bangkok.10 Government of India. 2002. Economic Survey 2002-2003. New Delhi.11 ADB. 2004. Asian Development Outlook. Manila.12 International Monetary Fund. 2003. Bangladesh Development Forum. Dhaka.

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Commissioning of the 1,020 MW Tala hydropowerfacility in 2006 will boost Bhutan’s revenuesconsiderably.

In general, SASEC countries have little leewayfor financing new programs. Nonetheless, the rateof return on investment in tourism is high andmember governments should coordinate toallocate additional resources in support of thesector. Bhutan and Bangladesh, however, areadvised to follow the policy of India, and not allowtaxation of the sector to undermine its internationalcompetitiveness. Under recent economic reforms,India has eliminated the luxury hotel tax andaviation fuel tax. Bangladesh has reduced to 29.4%its combined service charge, supplementary duty,and VAT related to hotels, but this rate is still veryhigh compared to India, Malaysia, and Thailand.Greater priority should be assigned to the sector, incooperation with the donor community and theprivate sector.

b. Development Assistance

Development assistance to SASEC countriesis considerable, and an important potential sourceof support of the TDP. In the case of Bhutan,assistance in 2002 amounted to $86 per capita, oneof the highest in the world. On an aggregate level,official donor assistance to SASEC countries wasmore than $4 billion in 2002. India alone received$3.6 billion in loans ($3.3 billion) and grants ($300million) in fiscal 2001/02. (the figures refer todisbursements, not commitments.)13 Most donorassistance has been loans in support ofinfrastructure investments and structural policyreform. The World Bank has recently agreed toincrease substantially its lending to India in orderto help maintain rapid economic growth.

Some support, albeit limited, has been indirect support of the tourism sector. Moreimportant has been assistance that impactstourism, but has been extended on more broad-based development grounds. To illustrate, ADB’sloan of of $210 million for the Subregional TransportConnectivity Project in 2004 will strengthensubregional transport links along the West Bengal

Transport Corridor stretching from Haidia Port inthe Bay of Bengal to Siliguri in northern West Bengalvia Kolkata. ADB loan assistance to the four SASECcountries exceeds $2 billion annually, and technicalassistance amounts to almost $20 million yearly.Technical assistance for subregional cooperationalone has averaged about $3.5 million annually.Loan and technical assistance for Nepal’s tourismsector totaled $30 million. The total amount of ADBloans to India and Bangladesh in 2003 was $1,532million and $532 million, repectively. Technicalassistance to India in the same year amounted to$14.7 million. Both India and Bangladesh also wererecipients of substantial assistance from ADB’sprivate sector operations.

As further illustration of donor assistance tothe tourism sector, the International FinanceCorporation (IFC) in 2004 extended a $10 millionloan to the Bhutan Tourism Corporation Limitedto assist in the construction of a series of high-endresorts in the country. The South Asia EnterpriseDevelopment Facility, which is managed by IFC, iscommencing assistance to Bhutan through trainingprograms for the banking sector in an effort tostrengthen its lending capacity for small businesses.Another member of the World Bank Group, theForeign Investment Advisory Service, is commencingwork with the Government of Bhutan to help createa more positive policy and regulatory framework forprivate investment. Such initiatives contribute tostrengthening the environment for development ofthe tourism industry.

Donor assistance for tourism has sometimesbeen given low priority because of the view thattourism is private sector driven and therefore notthe proper focus for public financing. Further, thecrosscutting nature of the sector complicates theorganizational assignment of tourism sectorprojects in donor agencies. As emphasized inProgram 7 of the TDP, however, public-private sectorpartnership is essential. Many tourism initiatives, infact, require a blend of public and private investment.Private investment in a tourism opportunity mayhinge on public infrastructure investment orregulatory or policy changes (e.g. a cross-bordercrossing facility). Similarly, public investment orregulatory and policy changes in support of tourismmay need to be accompanied by private sectorinvestment to ensure their viability.

13 Government of India. 2002. Economic Survey 2002. New Delhi. World Bank.2003. Global Development Finance. Washington D.C.

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Some donor agencies view assistance to thetourism sector as generating few benefits for thepoor—even exacerbating poverty by driving up landand food prices, degrading the environment, andcompromising cultural values. Such concernsfeature in the ICIMOD approach to communitydevelopment. The key is community involvementand attention to backward linkages, so as tomaximize the local benefit of tourism expenditures.As demonstrated in the Lao PDR, in particular itsecotourism projects in its northern provinces,tourism can become a major industry whileavoiding, with imaginative measures, the pitfalls ofunregulated growth. TMI, WWF, and SNV have beenleaders in community-based tourism in SASECcountries.

Regional cooperation in tourism is a mutuallybeneficial opportunity for SASEC countries. Afterall, the objective is to increase the volume andquality of tourism throughout the subregion. Donorassistance is needed to help realize the potential.

Consultation with donor agencies shouldcontinue. SASEC meetings of Ministers and seniorofficials should include representatives of the donorcommunity, both to convey the importance ofregional cooperation in tourism and to seek theparticipation of donors in formulating andimplementing appropriate programs and projects.TWG should be at the forefront in strengtheninginvolvement of the donor community.

To the extent possible, grants should besought in support of area-based planning, trainingand other initiatives that do not generate revenuesand the means for repayment. To the extentpossible, concessional financing should be soughtin support of tourism-related infrastructureprojects. A small shift in donor assistance in favorof tourism would yield impressive returns. Inaddition to grants and loans for tourism initiatives,policy-based loans in support of a more conduciveinvestment climate for the private sector areimportant. As highlighted during the BangladeshDevelopment Forum 2003, it is vital to remove thebureaucratic and administrative roadblocks facingthe private sector.

c. Private Sector Participation

Private sector participation is addressed inother sections of this report as well as in Programs7.1 and 7.2 and in Appendix 2. Since the privatesector is seen as the driving force for growth of thetourism industry, the requirement for strong privatesector involvement in resource mobilization isapparent. The private sector must be convinced thatparticipation is in its best interests. The TDP thushas projects specifically designed to foster greaterinvolvement of the private sector:

Project 1.1, Joint Marketing to Brand andPromote Ecotourism and Buddhist Circuits, andProject 1.2, Regional Marketing with SATTE, havedirect relevance for private sector operatorsassociated with ecotourism and Buddhist circuits.Public-private partnerships will be formed andstrengthened as a result of the formation of SASECMarketing Committees.

As private sector recognition of the value ofTWG programs grows, its representation at TWGmeetings should be encouraged. Airlines and large,subregional operators have valuable perspectivesto contribute. PATA should be asked to championthe association of the private sector with TWGprograms, particularly in public-privatepartnerships.

Further consideration is required of the TIF,envisaged as a venture capital and managementfund whose shareholders would include highlyinfluential tourism investors in the subregion. Thescale and ownership of the TIF is designed to makeit a powerhouse for financing new tourisminvestments. The TIF is also designed to helpconvince national and state governments tosupport private sector investments withcomplimentary investments in infrastructure, andwith policy and regulatory changes. The TIF is seenas a potential major factor in development of thesector. It could also be a partner in co-financingtourism-related infrastructure projects.

Greater openness to foreign investment isanother important means of engaging the privatesector and mobilizing resources for tourism. Todate, there has been relatively little foreigninvestment in the subregion, although this isstarting to change. Foreign direct investment (FDI)forms only 0.4% of total capital formation in Nepal,

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among the lowest in the world. A UN Conferenceon Trade and Development study puts Nepal’s FDIstock at about $100 million. According to the study,FDI has been deterred by political instability andthe inability of successive governments to meettheir commitments to foreign investors.Restrictions on the licensing of foreign companiesfor consultancy services, travel agencies, audit, law,carpets and handicraft production, and otherservice-sector areas hinder the operation of foreignfirms. FDI in India in 2002 was $3.5 billion,compared to $46.8 billion in PRC.14

d. The Banking Sector

The banking sector should be considered inconjunction with the private sector. Governmentsin the subregion are in the process of privatizingseveral state banks. For example, the IndustrialDevelopment Bank of India (IDBI) has been partiallyprivatized; the Ministry of Finance currently retains58% of the shares but further divestiture is planned.The two major state banks of Nepal, which accountfor 60% of total bank assets, will be privatized oncetheir financial positions improve. The IDBI is animportant source of funds for the tourism sector inIndia. The Nepal Industrial DevelopmentCorporation and the Bhutan Development FinanceCorporation are owned by their respectivegovernments. Both corporations have beenimportant supporters of the tourism sector. Mixedperformance has led to greater emphasis on strictcommercial practices. The banking sector inBangladesh is now subject to much tighteroversight by the Central Bank, and financialintermediation generally has improvedconsiderably in recent years.15

Although small in relation to the IDBI, theTourism Finance Corporation of India (TFCI) is ofparticular interest, as it was established in 1992specifically to meet the loan requirements of thetourism industry in the country. Over 500 projectshave been financed to date. In 2000–2001, TFCIgranted loans amounting to more than $820million, and disbursed over $1.1 billion, reflectingthe phased support associated with loanagreements from previous years. Most loans are forthe construction, expansion, or renovation ofhotels, especially 5-star and 3-star hotels. Loans arealso granted for heritage sites, amusement parks,restaurants, and tourist cars/coaches. There may bemerit in considering extending the operations ofTFCI to other SASEC countries. TFCI managementis interested in this possibility, but this wouldrequire amendment of the TFCI charter.

Financing problems facing the tourism privatesector do not appear to be unique to the sector, butin common with those facing the private sector as awhole. Field interviews and workshops indicatedthat there is ready capital available for worthytourism projects. However, complex regulatoryprovisions and licensing procedures, as well asuncertainties concerning land title, corruption, andother impediments bear most heavily on small andmedium-sized businesses, which are the backboneof the tourism sector. This is part of the rationalefor establishing the Tourism Investment Fund. It isalso part of the rationale for the call in January 2004by SAARC Heads of State for an assessment ofwhether a South Asian Development Bank (SADB)should be established, with a mandate to supportpublic and private sector joint ventures and regionalcooperation initiatives.

14 ADB. 2003. Key Indicators. Manila.15 International Monetary Fund (IMF). 2003. Report to the Bangladesh Development

Forum 2003. Washington D.C.

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C. Public-Private Partnerships

1.1.1.1.1. TWG Commitment to Public-PrivateTWG Commitment to Public-PrivateTWG Commitment to Public-PrivateTWG Commitment to Public-PrivateTWG Commitment to Public-PrivatePPPPPartnershipsartnershipsartnershipsartnershipsartnerships

From its outset, TWG has emphasized public-private partnership as of utmost importance fordevelopment of the tourism sector. As concludedduring the second meeting of the TWG in 2002,successful subregional cooperation in tourismdevelopment depends to a great extent on

(i) proper physical infrastructure facilities,such as transport networks, powerfacilities, airport facilities, and pollutioncontrol,

(ii) soft facilities, such as relaxation of visarequirements and cross-border travelfacilities, and

(iii) customer-led or demand-led facilities.

The private sector plays the dominant role inproviding services for tourists, and can be animportant partner in helping to financeinfrastructure facilities. It should also play animportant advisory role in establishinginfrastructure priorities and the appropriate policyand regulatory framework.

2.2.2.2.2. Core Objectives of PPPCore Objectives of PPPCore Objectives of PPPCore Objectives of PPPCore Objectives of PPP

Competition in world tourism is intensifying.The consumer is becoming more knowledgeableabout tourist destinations and travel options, andmore demanding about the products and services.Further, growing deregulation and privatizationglobally are amplifying market forces, exemplified,in many ways, by the Internet.

In response to these and other developments,the business environment in SASEC countriesshould be strengthened. A stronger partnershipbetween the public and private sectors is neededto facilitate identification of the hindrances andbarriers to investment in the industry, and to guidepolicy, regulatory, and institutional reforms.

Core objectives for public-private partnershipin tourism development include

(i) establishment of a complementaryrelationship between the public andprivate sectors,

(ii) creation of an environment conducive toprivate sector investment in the tourismindustry,

(iii) mobilization of the financial and technicalresources necessary to fulfill the TDP,

(iv) deployment of public infrastructure andother facilities in support of tourism, in anefficient and effective manner,

(v) implementation of the TDP in a manner thatis demand led rather than supply driven,

(vi) improvement of the overall competi-tiveness of tourism in the subregion, and

(vii) enhancement of the pro-poor benefits ofthe TDP.

3.3.3.3.3. Institutional Means for PPPInstitutional Means for PPPInstitutional Means for PPPInstitutional Means for PPPInstitutional Means for PPP

The SASEC Program includes a Trade,Investment and Private Sector Cooperation WorkingGroup. The work of this Group, however, focuses ontrade and investment. The mandate of TWG is tonurture PPP in the tourism sector.

The fulfillment of this mandate by TWG willnecessitate considerable dialogue, following theexamples of the Nepal Tourism Board and theTourism Development Committee in Bhutan. Whilein India and Bangladesh there are few formalinstitutions for linking the private and publicsectors, nonetheless, NTOs in these countrieshave advisory councils or some other means ofsharing information and decision-making with theprivate sector. There is merit in a subregionalmechanism facilitating public-private sectordialogue and partnership, and TWG is wellpositioned to be that mechanism.

a. The South Asia SustainableTourism Forum

The proposed Sustainable Tourism Forum(STF) would be held every year in conjunction withthe TWG meeting. This would be a partnershipbetween private sector tourism operators,

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government, and NGOs involved in ecotourismprojects. STF would strengthen market linkages andpromote sustainable practices. Over time, STF willestablish the subregion as home to the world’s bestin ecotourism.

bbbbb..... The SASEC TThe SASEC TThe SASEC TThe SASEC TThe SASEC Tourism Investment Fundourism Investment Fundourism Investment Fundourism Investment Fundourism Investment Fund

The SASEC TIF is also designed to leverageprivate-public sector partnership (Appendix 2). TheTIF is envisaged as having capitalization of $100million and 50 shareholders, including eminentprivate sector tourism interests from each of thefour SASEC member countries. Governments areexpected to have minority stakeholder positions inthe TIF, as are MFIs (possibly ADB). Essentially, TIFoperations are expected to impact tourism byfinancing private sector investment in tourismfacilities that will increase both the stock anddiversity of SASEC tourism products. Its operationsalso are expected to encourage governments toimprove infrastructure facilities as well as the policyand regulatory environment for tourism. Theselatter improvements are expected to encouragewider private sector participation in the tourismindustry. The TIF would also participate withnational, state, and local governments in financingpublic infrastructure in support of selected privatesector tourism investments. The TIF will take aminority equity position in private sector tourismprojects and in bankable tourism infrastructureprojects.

4.4.4.4.4. PPP Initiatives in the Context of SAARCPPP Initiatives in the Context of SAARCPPP Initiatives in the Context of SAARCPPP Initiatives in the Context of SAARCPPP Initiatives in the Context of SAARC

SASEC initiatives to promote public-privatesector partnership should take account of otherregional cooperation initiatives that are potentiallyoverlapping. It may be desirable at some junctureto extend the proposals for PPP in SASEC to SAARCmember countries.

a. South Asia Business Forum

The South Asia Business Forum (SABF) iscomposed of four partner Chambers of Commercefrom SASEC countries. SABF has BusinessFacilitation Cells in each country and a Trade and

Investment Policy and Procedure Review Council.The objectives of SABF include:

(i) to focus on opportunities for enhancingtrade and investment through greaterprivate sector cooperation,

(ii) identification of bottlenecks and policyreforms that, if acted upon, would enhancetrade and investment,

(iii) to liaise with the government and otherbodies,

(iv) participation in international meetingsand exhibitions,

(v) to act as a forum for subregionaldiscussions, and

(vi) to carry out an annual forum.

b. SAARC Tourism Working Group

SAARC was first established in 1985. In 1991, atechnical committee on tourism was established tomake recommendations for tourism promotion andfacilitation. In 1997, the committee recommendedsimplification of visas procedures, special airfares,and direct air links between the capitals of SAARCmember countries. A SAARC Tourism Council ofindustry representatives was established in 1999 andmandated to promote tourism in South Asia.Although it prepared a Strategic Plan for DevelopingTourism in South Asia, the Tourism Council wasfound to be ineffective—in part because it lackedpublic sector representation. In 2001, a WorkingGroup of senior tourism officials was formed. At itsmeeting in 2003, the Working Group maderecommendations for

• preparation of promotional material,• use of information technology (e.g. websites)

to promote the subregion,• a focus on sustainable development of

ecotourism (best practices),• emphasis on human resource development

(teaching modules),• cooperation with other international and

regional tourism organizations, and• emphasis on participation by the private sector.

These recommendations were endorsed bySAARC in July 2003. For a variety of reasons,

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however, there has been little progress to date infulfilling past commitments and agreements.

The recent SAARC Summit (4 to 6 January2004), however, moved the agenda forward. InFebruary 2004, the SAARC Tourist Working Groupmet in Colombo to consider progress and to spurimplementation. SAARC Chamber Tourism Councilparticipants called for a revised strategic plan to2010 to develop tourism in South Asia. It also calledfor the establishment of a SAARC TourismInformation Network and for regional seminars,training workshops, and tourism fairs.

To the extent that a revitalized SAARC beginsto show results, it could assist SASEC membercountries in forging a strong public-private sectorpartnerships. Clearly, SASEC initiatives to promotepublic-private sector partnerships should bepursued in the context of SAARC developments.

5.5.5.5.5. Public-Private Development RolesPublic-Private Development RolesPublic-Private Development RolesPublic-Private Development RolesPublic-Private Development Roles

The tourism sector necessarily involves a mixof linkages of public and private sector interests(Table 24). Tourism development in SASECmember countries is thus importantly dependenton a close and positive working relationshipbetween governments and the tourism industry.Regional cooperation can and should contributeto building this relationship.

D. Enhancing the Pro-PoorBenefits of Tourism

1.1.1.1.1. Principles of Pro-PPrinciples of Pro-PPrinciples of Pro-PPrinciples of Pro-PPrinciples of Pro-Poor Toor Toor Toor Toor Tourismourismourismourismourism

The SASEC subregion is one of the poorest inthe world. Between a third and a half of thepopulation live below the poverty line. Clearly, it isimportant that development initiatives in theSASEC subregion be designed in a way thatmaximizes pro-poor benefits.

In addressing pro-poor tourism, it is useful todistinguish between international, intra-regionaland domestic tourism. Desired results in each casemay be summarized as shown below.

International tourism can:

• Generate substantial economic benefits in acountry in terms of increased employment,income, foreign exchange earnings, andgovernment revenue. Tourism can be a catalystfor expansion of other sectors of the economyfor a wider distribution of benefits.

• Contribute to the development of sustainabletourism that does not result in environmental,socio-cultural or health problems, but thatpresents a desirable image of the subregion tothe world.

PRO-POOR TOURISM

Pro-Poor Tourism (PPT) is tourism thatresults in increased net benefits for poorpeople. PPT is not a specific product or nichesector but an approach to tourismdevelopment and management. It enhancesthe linkages between tourism businesses andpoor people, so that tourism’s contribution topoverty reduction is increased and poorpeople are able to participate more effectivelyin product development. Links with manydifferent types of ‘the poor’ need to beconsidered: staff, neighboring communities,land-holders, producers of food, fuel and othersupplies, operators of micro-tourismbusinesses, craft-makers, other users oftourism infrastructure (roads) and resources(water), etc. There are many types of pro-poortourism strategies, ranging from increasinglocal employment to building mechanisms forconsultation. Any type of company can beinvolved in pro-poor tourism – a small lodge,an urban hotel, a tour operator, aninfrastructure developer. The critical factor isnot the type of company or the type of tourism,but that there is an increase in the net benefitsthat go to poor people.

Ashley, C. and D. Roe, 2003.Working with the Private Sector on Pro-Poor Tourism.

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Official support for a SASEC or SAARCvisa, and visa-free entry for tourists fromkey markets. Introduce longer-termmultiple-entry visas. Reduce barriers tocross-border tourism development andencourage foreign investment. Improvegeneral security and transport safety.

Raise awareness about the need to protectenvironmental, cultural, and historicalresources and how to prevent HIV/AIDs.Identify options for industry funding ofsuch measures. Facilitate the developmentof subregional tourism networks to providemulti-country tourism packages.

Private investment in nature,history, and culture-basedtourism, eco-tourism, leisure-based tourism, and othertourism activities.

Improve service standards of keyofficials (immigration, customs, andtourism).

Work with private sector to monitorprogress in improving service standards oftourism officials. Prepare and distributepromotional material to encouragetourism.

Develop tourism businessassociations to help addressindustry issues and concerns,and to mobilize funding fortourism promotion anddevelopment.

Reform regulations that restrict: (a) thenumber and/or scope of tourism serviceproviders at all levels; (b) the transfer ofskills and knowledge by foreign trainers;(c) private investment in vocationaltraining; and/or (d) domestic and foreigninvestment in tourism.Facilitate appropriate private sector

marketing, including tourism “events,” toraise the profile of the subregion, buildingon existing tourism brand awareness (e.g.“Incredible India”) and tourism initiatives.

Actively promote cross-border tourismnetworks and resolve barriers to thedevelopment of such networks.

Increase number of domestic and foreign

tourism operators with officesin the subregion.Public investment in support

infrastructure (e.g. customs andimmigration).Invest in public infrastructure basic to

supporting and facilitating tourism: roads,telecommunications, energy, water supply,and health services. Increase numberof small tourism service providers.

Improve transportation safety(road, air, sea, rail) and access

(open skies policy).Establish new international checkpoints,and increase air links.

Provide access roads from main transportlinks to tourism attractions in the

subregion.Facilitate private investment in tourismrelated vocational and language

training.Reflect the increasing demand forappropriately skilled labor in tourism-

related services in plans for educationand vocational training. Ensure thatother infrastructure planning is linked toefforts to develop tourism.

Increase community awareness of socialrisks and benefits of tourism, and

encourage initiatives that maximizecommunity benefits from tourism.

Develop rural villages, towns and urbancenters to provide the basic services to

attract domestic and foreign touristsand investment in tourism.Annual meetings between national andstate/provincial leaders, tourism

industry representatives, and relevantNGOs to address priority issues.

SASEC = South Asia Subregional Economic

Cooperation, SAARC = South Asian Association for Regional Cooperation, NGO = non-government organization.


Table 24: Public and Private Sector Tourism Development Roles

Government Regulatory Role Government Facilitating Fole Private Sector Role

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• Contribute to the conservation andenhancement of the environment, biodiversity,scenic places, archaeological and historic sites,cultural traditions, and ethnic identities.

Domestic and intra-regional tourism can

• Provide opportunities for people in thesubregion to pursue recreational activitiesand learn about their country’s and region’snatural, historic, and cultural heritage.

• Beneficially redistribute economic benefits,especially from higher income urban areas tolower income rural areas.

The TDP addresses the core factors bearing uponpro-poor benefits, largely from the perspective ofinternational tourism, but recognizes that intra-regional tourism is growing rapidly and will beincreasingly important.

2.2.2.2.2. Distributing the Benefits of TDistributing the Benefits of TDistributing the Benefits of TDistributing the Benefits of TDistributing the Benefits of Tourismourismourismourismourism

The SASEC TDP focuses on areas that areamong the poorest in South Asia. Only the 13North, East, and North East states of India areincluded in the TDP, which are states contiguous tothe neighboring countries of Bangladesh, Bhutan,and Nepal. In this way, the Plan identifies a logicalsubregion where the mutual interests of the fourcountries can be pooled to expand the volume andquality of tourism.

Tourism is a highly labor-intensive, relativelylow-skill industry that is ideally suited to all stagesof development. The TDP capitalizes on thesecharacteristics by presenting a wide range of highlypractical program and project initiatives. Jointmarketing will bring the attractions of the subregionto the attention of tourists around the world, andtheir interest in visiting the subregion will be betterfacilitated. Further, the rich array of Buddhistcircuits, ecotourism, and other products envisagedby the TDP will encourage longer stays and greaterbenefits to local residents. Longer stays enabletourists to reach remote areas, often the pockets ofmost severe poverty.

Further, the TDP engages the private sector asthe key driver in developing the tourism industry.

By encouraging and facilitating the private sectorto take the lead in investing in new tourismfacilities, and reserving for government the role ofproviding infrastructure and key public services (e.g.visas, customs, and marketing) in support of thetourism industry, limited budgetary funds can beconserved. In turn, this will help governments meetother expenditure responsibilities, including qualityhealth and education services that are so critical tobreaking the poverty cycle.

3.3.3.3.3. Employment GenerationEmployment GenerationEmployment GenerationEmployment GenerationEmployment Generation

Section VI.B.2. and Appendix 3 provideanalyses of the economic and financial benefitsexpected in SASEC from TDP initiatives andincreases in tourism. They show a graduallyincreasing spread between the “with TDP” and“without TDP” scenarios. The projected annualtourism growth rate by 2014 is placed at 7.5% withTDP initiatives, versus 6.0% without such initiatives.Over the 10-year period an incremental 740,000tourists arrivals are expected with TDP initiatives.

The employment effects of this incrementalnumber of tourists are expected to be considerable.On average, 3.5 additional international tourists resultin one additional direct job in the tourism industryand 1.25 indirect jobs in related industries (e.g.agriculture, construction, etc.). On this basis, theprojected 740,000 additional tourism arrivals willcreate some 265,000 jobs during the period up to 2014.By 2014, incremental employment could reach 135,000annually. While the overall cost per job generatedwould be about $700, most of this cost would be borneby the private sector. Cost to the public sector per jobgenerated would be less than $300.16

Given the size of the population of the SASECsubregion, at almost 600 million, and the degree ofunemployment (some 20 million currently) andsevere underemployment, it cannot be expectedthat TDP initiatives will make a significant impact

16 Methodology Note. Financial requirements for the TDP are estimated at $175million, $100 million of which will be private sector investment in hotels,restaurants, recreation centers, refueling and repair stations, etc. Dividing thenumber of jobs generated (265,000 over the period to 2014) into $175 millionyields $660 per job generated. From a public sector perspective, the cost is $75million divided by the number of jobs, yielding $283 per job generated. It couldbe argued that these calculations understate the cost of job generation, for ajob generated in Year One will continue in each subsequent year. On the basisof incremental job generation in 2014, the overall cost per job would be $1,300,and the cost to the public sector is $555.

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on overall employment prospects in Bhutan,Bangladesh, Nepal and the 13 North, East, andNorth East states of India; but it will help slow thegrowth in unemployment (see Appendix 3).

4.4.4.4.4. Promotion of Local ProductsPromotion of Local ProductsPromotion of Local ProductsPromotion of Local ProductsPromotion of Local Products

The employment and income effects of theTDP will depend to some extent on the degree towhich the proposed programs and projects act as acatalyst in promoting the use of local products. Itshould be kept in mind, however, that the TDP isnot a masterplan for the subregion. Rather, itidentifies subregional initiatives for tourismpromotion, facilitation, and product development.

Building on these subregional initiatives, thereare many actions that national, state, and localgovernments could and should take to strengthenpro-poor benefits. In particular, greater effort shouldbe made to link tourism to the all-importantagriculture sector. The livelihoods of nearly 80% ofthe population in the subregion are in theagriculture sector, many only at subsistence level.Market information and rural road access to touristdestinations in the subregion will be vital to helpfarmers respond to increasing demand from touristsfor high quality meat, poultry, eggs, fish, fruit, andvegetables. Improved extension and researchservices will also be important in making theconnection between increased tourism and newagricultural opportunities.

Governments in the subregion will also needto remove impediments to the private sector, so itcan respond effectively and efficiently to newopportunities arising from increased tourism. Thecharge is often made that trekking and other formsof low-budget tourism result in few, if any, benefitsto local residents. This may reflect the lack of localproducts meeting international standards, hencethe use of imported products by tourists. Landtenure uncertainties, among other problems,compound the difficulties of obtaining micro-finance, slowing agricultural diversification intocash crops and high valued-added products.Restrictions on foreign investment in thehandicraft and carpet industry hamper theadaptation of design and quality to meet touristdemand.

The TWG role in this area should be toadvocate styles of tourism that distribute thebenefits of tourism widely and allow governmentsthe opportunity to implement pro-poor andlivelihood programs associated with tourismdevelopment. Another important role for TWG is asa champion of best practice in such programs. Theagenda of the Sustainable Tourism Forum, forexample, should include examination of bestpractice in such areas as participatory processesand gender equity in village-level tourismdevelopment. The subregion is using the bestknown approaches in many of these areas. The aimof TWG should be world leadership in all aspects ofecotourism and pro-poor tourism.

E. Managing the Impacts ofTourism

Subregional Guidelines and Codes of ConductSubregional Guidelines and Codes of ConductSubregional Guidelines and Codes of ConductSubregional Guidelines and Codes of ConductSubregional Guidelines and Codes of Conduct

Tourism authorities and industry associationsin the subregion are currently debating guidelinesand codes of conduct as a means of achievingsustainable outcomes. There are opportunities forSASEC to benchmark with best practice and learnfrom the experience of other parts of the world inecotourism and religious circuits. In India, DOT iscurrently preparing a study of best practices in 12states. ICIMOD is proposing a study to correlate andrationalize current codes of conduct in use in SouthAsia. Sikkim is well advanced with codes of conduct,and reports that the process of developingguidelines can be as important as the results.

The adoption of “green” guidelines andbenchmarking is one of the more visible initiativesfor sustainability within the tourism industry,although universally accepted criteria are yet to beagreed upon. Some examples of existing codes ofconduct include:

• Code of Ethics and Guidelines for SustainableTourism (Tourism Industry Association ofCanada),

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• Code of Sustainable Practice (Tourism CouncilAustralia),

• Environmental Codes of Conduct for Tourism(UNEP),

• Sustainable Tourism Principles (WWF andTourism Concern), and

• Code for Environmentally Responsible Tourism(PATA).

Project 2.1 addresses the issue of subregionalstandards. Standards are recommended to betailored to specific South Asian industry needsrather than imported from elsewhere. The processof forging a South Asian industry Code of Conductcould in itself provide valuable opportunities forsubregional cooperation. The proposed STF, withall the various stakeholders represented, will be theideal forum for developing and agreeing on criteriaand guidelines.

The PATA code for environmentally responsibletourism is representative of existing codes, in termsof content. The code is directed at PATA members,who are urged to adopt various general measuresrelated to environmental and social sustainability.Acceptance of the code is regarded as an indicationthat a member is committed to working towardsustainable outcomes, without obligating membersto meet specific objectives or deadlines. Thus thecodes are primarily a form of moral persuasion thatcan be expected to garner a high level of corporatesupport. The emphasis on self-regulation implicitin most of these codes is based on the principlethat demonstration of good practice by the industrywill pre-empt the need for government to imposeregulations, and leave the industry with morecontrol over its operations. Under the PATA code,members are urged to:

• Adopt the necessary practices to conserve theenvironment, including use of renewableresources in a sustainable manner, andconservation of non-renewable resources.

• Contribute to the conservation of any habitat offlora and fauna, and of any site whether naturalor cultural, which may be affected by tourism.

• Encourage relevant authorities to identify areasworthy of conservation, and to determine thelevel of development, if any, that would ensurethose areas are conserved.

• Ensure that community attributes, culturalvalues, and concerns, including local customsand beliefs, are taken into account in theplaning of all tourism-related projects.

• Ensure that environmental assessmentbecomes an integral step in the considerationof any site for a tourism project.

• Comply with all international conventions inrelation to the environment.

• Comply with all national, state, and local lawsin relation to the environment.

• Encourage those involved in tourism to complywith local, regional, and national planningpolicies, and to participate in the planningprocess.

• Provide the opportunity for the widercommunity to take part in discussions andconsultations on tourism planning issuesinsofar as they affect the tourism industry andthe community.

• Acknowledge responsibility for theenvironmental impacts of all tourism-relatedprojects and activities, and undertake allnecessary responsible, remedial, and correctiveactions.

• Encourage regular environmental audits ofpractices throughout the tourism industry andencourage necessary changes to those practices.

• Foster environmentally responsible practices,including waste management, recycling, andenergy use.

• Foster in both management and staff, and intourism-related projects and activities, anawareness of environmental and conservationprinciples.

• Support the inclusion of professionalconservation principles in tourism education,training, and planning.

• Encourage an understanding by all thoseinvolved in tourism of each community’scustoms, cultural values, beliefs, and traditionsand how they relate to the environment.

• Enhance the appreciation and understandingby tourists of the environment through theprovision of accurate information andappropriate interpretation.

• Establish detailed environmental policies and/or guidelines for the various sectors of thetourism industry.

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F. Relationships with OtherRegional Groupings

Regional cooperation is a means to an end,leading to better international relations, deepereconomic ties, and the peace, security, income, andemployment that these can generate. Regionalcooperation is about mutually beneficial outcomes,where individual and collective benefit is greater thanwhat can be achieved when countries act alone.Regional cooperation for tourism promotion,facilitation, and product development well illustratesthe case. By pulling together, the number of tourismarrivals and length of stay can be greatly increased,to the mutual benefit of the cooperating countries.

1.1.1.1.1. Relevant Regional GroupingsRelevant Regional GroupingsRelevant Regional GroupingsRelevant Regional GroupingsRelevant Regional Groupings

a. SAARC and SASEC

Logically, the first circle of regionalcooperation should be neighboring countries,especially neighbors that have no long-standingserious tensions. SASEC countries fit this modelwell. As SASEC is a subgroup of South Asia, thenext circle of regional cooperation should beSAARC member countries as a whole. In additionto Bangladesh, Bhutan, India, and Nepal, SAARCmember countries include the Maldives, Pakistan,and Sri Lanka. SASEC tourism initiatives shouldcomplement those of SAARC and, where desirable,be extendable to all SAARC member countries.Many of the programs included in the TDP are ofthis nature, such as joint marketing, productstandards, the host program, and private-publicsector partnership initiatives.

The Islamabad Declaration, issued at theconclusion the SAARC Summit in January 2004,included a commitment to the formation of theSouth Asian Free Trade Area (SAFTA) and arecommitment to a South Asian Economic Union.The Heads of State also called for an assessment ofwhether a South Asian Development Bank (SADB)should be established, with a mandate to supportpublic and private sector joint ventures and regionalcooperation initiatives.

Regarding tourism, the Islamabad Declarationstated:

Development of tourism within South Asia could bringeconomic, social and cultural dividends. There is a needfor increasing cooperation to jointly promote tourismwithin South Asia as well as to promote South Asia as atourism destination inter alia by improved air links. Toachieve this and to commemorate the twentieth year of theestablishment of SAARC, the year 2005 is designated asSouth Asia Tourism Year, for the success of which eachmember would individually and jointly organize specialevents.

The Islamabad Declaration reflects theimprovement of relations between India andPakistan. There is an opportunity to move theregional cooperation agenda forward, andcooperation in tourism promotion, facilitation, andproduct development offers quick results with arelatively small resource commitment.

The SAARC tourism agenda includessimplification of visa procedures and direct air linksbetween the capitals of SAARC member countries.At its July 2003 and January 2004 meetings, SAARC’sTourism Council agreed to joint promotionalmaterial, improved use of websites and othermeans to promote the region, sustainableecotourism, human resource development,networking with other international tourismorganizations, and greater participation by theprivate sector.

b. BIMST-EC

Another regional cooperation circle that islinked logically with SASEC is BIMST-EC. Formedin 1999, the group has made progress in a numberof fields, notably in trade and tourism. In January2004, BIMST-EC was expanded to include Nepal andBhutan. In February 2004, six of the expandedBIMST-EC group signed a free trade agreement. Theagreement stipulates that tariffs on intra-regionaltrade among the group will fall to zero by 2012; thetwo less developed countries (Nepal and Myanmar)will have until 2017 to reduce their tariffs to zero.The Leaders’ Summit later this year is expected toapprove the agreement.

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The year 2004 is visit BIMST-EC Year, and atourism website and a brochure for the BIMST-ECregion have been created. Member countries haveagreed to organize events such as conventions,cultural events, fashion shows, and food festivalsduring this year. Other longer-term steps include anopen skies policy, religious circuit tourism, newproduct development, exchange programs for travelagents, and initiatives with the private sector. Earliersteps taken included: a report on visa and entryformalities; an inventory on investment incentivesfor the tourism sector; a report on existingregulations for the protection of tourists and tocounteract malpractices in tourism operations;sharing of expertise on a Buddhist Circuit TourismTraining Program; a report on transportationweaknesses in the subregion; a joint study onenvironmental management and culturalpreservation; and encouragement of airlines andhoteliers to offer concessionary rates for multi-destination travel.

c. The GMS Program

Overlapping with the BIMST-EC Program, theGMS Program comprises the six countries thatshare the Mekong River: Cambodia, Lao PDR,Myanmar, Thailand, Viet Nam, and PRC (YunnanProvince). The ADB-supported Programcommenced in 1992, and is widely viewed as ahighly successful example of practical, results-oriented regional cooperation. Initially the GMSProgram focused on infrastructure investmentslinking the subregion, especially transport, energy,and telecommunications. Other priority sectors aretrade, investment, human resource development,environment, agriculture, and tourism.

The GMS Program has also been successful inharmonizing key policy and regulatory issues, mostnotably through the all-country Agreement for theFacilitation of Cross-Border Movement of Peopleand Goods. While all six countries have signed theAgreement, the protocols and annexes to theAgreement are still in process. In April 2004, LaoPDR, Thailand, and Viet Nam signed the first stageof the protocols and annexes, covering operationalong the East-West Economic Corridor linking thethree countries. GMS also has acted as a catalystfor self-initiated bilateral and multilateral

agreements among the six countries. The EconomicCooperation Strategy, initiated by Thailand andincluding Lao PDR and Cambodia, is an example.

The GMS Tourism Development Flagshipinitiative aims to promote and strengthensubregional cooperation and tourism developmentin GMS countries. Increased tourism in GMS ispromoted in order to augment earnings, reducepoverty, mitigate environmental degradation fromunplanned and unsustainable development, and todevelop human resources. The six sets of initiativesincluded under Tourism Development are:

(i) Promotion of the subregion as a singletourism destination.

(ii) Development of tourism-relatedinfrastructure.

(iii) Improvement of human resources in thetourism sector.

(iv) Promotion of pro-poor, community-basedsustainable tourism.

(v) Encouragement of private sectorparticipation in the GMS tourism sector.

(vi) Facilitation of the movement of tourists toand within GMS.

ADB’s most recent assistance for GMScooperation in tourism development includes a $35million loan to Cambodia, Lao PDR, andViet Nam for improvement of tourism-relatedinfrastructure; pro-poor, community-based tourismdevelopment; subregional cooperation forsustainable tourism; and implementationassistance and institutional strengthening.

The private sector has been a strong partner inthe GMS Program. Ten years ago PATA helpedinitiate the annual Mekong Tourism Forum, whichdraws together tour operators and other tourismrepresentatives from the region and overseas.Through joint marketing and product development,the Greater Mekong Subregion has become a singletourist destination with, for 4 years in succession,the fastest growing rate of tourism arrivals of anyregion in the world.

d. ASEAN

The oldest and most established regionalcooperation group in Asia is the Association of

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South East Asian Nations, which now has tenmember countries: Brunei, Cambodia, Indonesia,Lao PDR, Malaysia, Myanmar, Philippines,Singapore, Thailand, and Viet Nam. ASEAN’sinitiatives include the ASEAN Free Trade Area(AFTA) and the goal of an ASEAN Economic Regionby 2020. In addition to a free trade agreement withthe PRC and a partnership agreement with Japan,in 2003 ASEAN and India signed a FrameworkAgreement on Comprehensive EconomicCooperation. This calls for greater trade andinvestment and more effective economicintegration. These developments help set the stagefor increased tourism, both intra-regional andinternational.

At the 8th ASEAN Summit in Cambodia inNovember 2002, the Heads of State signed aTourism Cooperation and Promotion Agreement.The Agreement aims to promote and facilitate intra-ASEAN travel by joint marketing and promotioncampaigns, improvements in market access,improvements in safety and security, and humanresources development. Measures includeliberalized air services, extended visa exemptionarrangements, simplified procedures for issuanceof visas and travel documents, the phasing outtravel levies and taxes on ASEAN nationals,encouraged use of smart cards for frequenttravelers, the adoption of universal symbols andmulti-lingual signs and forms, improved road safetyand travel insurance coverage, and gradualreduction of all travel barriers. ASEAN membercountries have agreed to visa-free travel for ASEANresidents (e.g. Thailand and Viet Nam). In addition,the ASEAN Tourism Association has initiated theannual ASEAN Tourism Forum, an ASEAN AirlinePass, and an ASEAN Hotel Pass.

e. CAREC

The ADB-supported Central Asia RegionalEconomic Cooperation (CAREC) Program wasinitiated in 2000 and has seven participants:Azerbaijan, Kazakhstan, the Kyrgyz Republic,Mongolia, Tajikistan, Uzbekistan, and the XinjiangUygur Autonomous Region of PRC. The Program isof interest to SASEC and SAARC both for itspotential as a trade partner and as a link with Russiaand Eastern Europe. Additionally, the Central Asian

Republics are landlocked and need access toseaports, which are available in Pakistan, India andBangladesh. The focus of the CAREC program is onthree priority areas: power and water, customs andtrade facilitation, and transport. Tourism is not yetincluded in the Program, but there may be interestin its inclusion once actions in priority areas havebeen consolidated.

f. The ADB Perspective

ADB is mandated to promote regionalcooperation by its Charter, which stipulates thatpriority should be given to regional, subregional,and national programs and projects that contributemost effectively to the harmonious economicgrowth of Asia. This has involved threecomplementary functions: first, to provideinformation relevant to regional cooperation;second, to act as an “honest broker” among itsdeveloping member countries; and third, tomobilize public and private resources for regionalinvestments.

In an address to the Second North EastBusiness Summit in New Delhi in January 2004, ADBCountry Director for India, Louis de Jonghe,provided an excellent statement on the ADBcommitment to regional cooperation. Mr. de Jongheoutlined ADB’s desire to work with the North Eaststates as a partner, and to move ahead with thenecessary investment, reforms and capacitybuilding toward a sustainable growth path. TheNorth East is central to ADB regional cooperationprograms for South Asia.

ADB emphasis is to strengthen developmentof the North East through investment ininfrastructure, fiscal reform, and strengthenedgovernance and service delivery, especially to thepoorer segments of the population. Facilitatingprivate sector, led growth is an important priority.ADB views the North East as India’s gateway toSoutheast Asia. Closely integrating the North EastStates with the rest of India and its neighbors willhelp reposition the region as a strategic base forforeign and domestic investors tapping markets inSAARC member countries, Southeast Asia and thePRC. Ultimately, ADB would like to integrate itssubregional programs, SASEC, BIMST-EC andGMS.

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2.2.2.2.2. Lessons Learned from SubregionalLessons Learned from SubregionalLessons Learned from SubregionalLessons Learned from SubregionalLessons Learned from SubregionalCooperation ProgramsCooperation ProgramsCooperation ProgramsCooperation ProgramsCooperation Programs

There are several regional cooperation groupsthat overlap with or are adjacent to SASEC. Thesegroups are like the geological plates of the world,sometimes shifting and bumping together. There isno perfect fit and there will always be movement.But it is clear that regional groupings are becomingmore important. It is vital that SASEC interconnectstrongly with those that are most relevant to it,namely SAARC, BIMST-EC, GMS, and ASEAN.

The TDP therefore recommends that the TWGnetwork closely with these groups. In particular,representatives of these groups should be invitedto tourism workshops, especially of the kindscheduled in Bhutan at the end of May 2004. Sharedexperience is invaluable. A representative from TWGshould attend tourism meetings of SAARC, BIMST-EC, GMS, and ASEAN.

Lessons learned from regional cooperationprograms include the following:

(i) Regional cooperation requires a deeperand more sustained commitment than istypically called for in nationaldevelopment programs.

(ii) Preparation of inter-country projects andprograms requires a multi-countryperspective.

(iii) Regional cooperation involves a process ofbalancing interests among participatingcountries through consensus building andconsensus maintenance.

(iv) Focus should be on achievable targets andprograms; unrealistic expections should beavoided.

(v) Regional cooperation requires a high levelof regular communication within andamong participating countries. High-levelforums to discuss regional cooperation areimportant in fostering dialogue and trust,but the forums should be properlyprepared.

(vi) To succeed, regional cooperationinitiatives need adequate resources,including those for capacity building. Thetraining of national focal points is vital.

(vii) The policy framework must be adjusted tocomplement regional cooperationinitiatives.

(viii) Improved information and knowledge flowsare critical to building trust and consensus,and for community involvement.

(ix) Program implementation needs to beguided through sound technical assistanceand funding options.

(x) Subregional programs in tourism dependto a great extent on the setting up ofinfrastructure support facilities, such astransport networks, airport facilities, andenergy projects. Also important are softfacilities such as relaxation of visaformalities, environment-friendly sustain-able development initiatives, andestablishment of customer-led servicefacilities.

(xi) Private sector ventures (e.g. the MekongForum) are important to realizing the goalsof regional cooperation.

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DEVELOPMENTMATRIX AND

ACTION PLAN

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1.2. Regional Marketing with SATTE

A marketing campaign will brand SASEC’spremier ecotourism and “BuddhistHeartland” products, targeting internationaland regional tour operator networks throughNTOs’ pooled resources. In style, thepromotion will echo the “Incredible India”campaign.

Internet-based marketing material as wellas promotional brochures, posters and CDROMs will be produced in six sub-themes:

• Trekking in the Himalaya• Ecotourism in Ganga-Brahmaputra• Adventure Tourism in South Asia• Footsteps of the Lord Buddha• Living Buddhism in the Himalaya• Buddhist Art and Archaeology in South

Asia.

Up to $5 million. At least $100,000will be required in the SASECTourism Marketing Fund in order tostart the campaign.

An initial contribution of $10,000 willbe made by each NTO. Theassistance of development partnerswill be sought. India will underwritethe production of collateral, subjectto NTOs contributing the initial$10,000 and providing suitablecontent. Later, TWG will arrive at anongoing funding formula.

• SASEC products positioned ininter- and intra-regional markets.

• Increased destination awarenessin target market segments.

• Tourism growth generatingbenefits to rural areas.

• Increased private sectorinvestment in products.

• Unique aspects in each countryemphasized.

• Mutual concern developed forproduct standards.

1.3. Harmonizing Arrival Statistics

Project will address the common need foran accurate picture of intra-regional travel.Currently, intra-regional arrivals are notcounted in accordance with WTO norms.

A program of needs assessments anddesign of appropriate statistics gatheringmethods at a national level will be followedby training for NTOs and other agencies.

• A more accurate picture of travelpatterns for planning, marketingand management.

• Training needs in researchdepartments will be assessed.

• An incidental outcome may be achange in the world ranking ofthe SASEC region in tourist arrivals.

$200,000.

WTO’s offer of assistance has beenaccepted by TWG. Bangladesh will seekWTO’s advice on funding options,including cost sharing.

Program 1. Coordinated Marketing1.1. Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits

Project OutlineProject OutlineProject OutlineProject OutlineProject Outline Expected BenefitsExpected BenefitsExpected BenefitsExpected BenefitsExpected Benefits Cost and FinancingCost and FinancingCost and FinancingCost and FinancingCost and Financing

Instead of creating a subregional industryforum, TWG will build on the South AsiaTourism and Travel Exchange (SATTE), anevent and mart showcasing the regionalindustry. Its organizers wish to furtherregionalize the event.

A SASEC presence at SATTE will promoteSASEC product brands to the regionalindustry, including those in touch withSASEC’s target inter- and intra-regionalmarkets. SATTE will also be used as aplatform to reach non-resident nationals.

• Stronger SASEC product andbrand identity.

• Heightened demand, increasedsales and resulting benefits torural poor.

• Public-private partnership resultingfrom the MarketingCommittees.

• Increased tourism awarenessengendering pride in South Asiannatural and cultural attractions.

Up to $1 million. $10,000 required to startthe project.

SATTE organizers will contributeexecutive effort. Financial andin-kind support will be generated throughsponsorship. Eventually, the SASECpresence will be self-funding.

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DEVELOPMENT MATRIX AND ACTION PLAN

Potential negative impacts will includethe perception that tourism usesculture as a commodity.

India (Leader), Nepal, Bhutan, andBangladesh.

Potential development partners:Government of India, ADB, JBIC, PATA,SATTE, FICCI, regional airlines, privatesector, and advertising agencies.

NTO Nodal Persons will facilitateselection of content. India will leadcollateral development. FICCI willprovide the campaign launch. SATTEwill assist follow up. NTOs willdistribute collateral. NTOs will monitorresults.

30 Jun 04 – NTOs confirm $10,000and transfer soon after.

30 Jun 04 – Content sent to DOT,India.

Sep 04 – Launch at FICCI’sDestination South Asia Conference.

Jan to Dec 05 – Collateral distributionand networking to internationaloperators.

Mar 05 – Promotions at SATTE.

Bangladesh (Leader), India, Nepal, andBhutan

Development Partners: WTO and otherconcerned government agencies

31 Oct 04 – Bangladesh, after consultingwith WTO and the other three NTOs, willcirculate an outline project document,including proposed fundingarrangements and timetable.

Partners and RolesPartners and RolesPartners and RolesPartners and RolesPartners and Roles TTTTTime Frameime Frameime Frameime Frameime Frame Key IssuesKey IssuesKey IssuesKey IssuesKey Issues

NTOs need to facilitate and assist SATTEorganizers.

The SATTE Marketing Committees may besub-committees of existing organizations.


Development Partners: SASEC MarketingCommittees, SATTE, and industryorganizations.

NTOs convene SASEC MarketingCommittees. SATTE prepares strategy.NTOs and industries support promotions atSATTE and familiarization trips.

30 Jun 04 – ADB provides sample MOUand assists negotiations with SATTE.

30 Aug 04 – NTOs convene SATTEMarketing Committees.

Jul 04 to Feb 05 – SATTE organizersprepare strategy and mobilize support.Mar 05 – First launch and post-SATTEfamiliarization trips.

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1.4. Events Calendar


Heightened demand through SASECcollaborative marketing efforts needs to besupported by consistent quality of productdelivery across the subregion. There is animmediate common interest in developingconsistent and effective product standardsand industry codes of conduct,benchmarked on international best practice.

The Sustainable Tourism Forum (referto 5.4) will be the platform for promotingthe standards and codes agenda at asubregional level. The development processwill be ongoing, reflecting that suchstandards need to evolve and develop fromwithin the subregion to be effective.

• Sharing of lessons learned.• Uniform approach to standards

and industry codes of conduct.• Enhanced consumer information

for prospective visitors.• Improved product quality.• Enhanced yield and greater

consumer satisfaction.• A significant contribution to the

sustainability of SASEC tourism.

$1 million.

The project will be supported by an allianceof development agencies andnational industry organizations. The alliancewill meet with TWG and for the rest of theyear act independently on components ofthe project, with funding arranged from theirown sources. On the advice of UNESCO, theNordik World Heritage Foundation will beapproached.

Program 2. Enhancing Product Quality2.1. Product Standards and Industry Codes of Conduct in Ecotourism and Buddhist Circuits

Program 3. Facilitating Travel3.1. Eastern Himalayan Caravan

A calendar of cultural, sporting and religiousfestivals and events will be produced for theSASEC region. The calendar will bedeveloped in print, as an illustrated foldoutbrochure and map, and also in a formsuitable for posting on websites.

The process of developing and distributingthe events calendar will involve private-public partnerships and wider stakeholdersin addition to the tourism industry.

• Key brand images established.• Product packaging enhanced.• Contribution made to international

marketing.• Travel media attracted to the

region.• Visitor stay lengthened and

seasons extended.

$50,000.

DOT India will fund this project as anintegral part of Project 1.1. In the future,funding for the events calendar is envisagedthrough a combination of commercialsponsorship and in-kind support organizedby NTOs and coordinated by DOT India andSATTE.

Significant potential exists in new cross-border tourism routes. This project willhelp NTOs illustrate the tourism potential ofthe routes to other government agenciesand raise the profile of new travel routeswith the travel media. Event(s) will beorganized by the private sector based on theidea of an overland “caravan” of four-wheel-drive vehicles exploring and celebrating thepotential of new tourist routes, creatingpublicity along the way aimed at the travelmedia, trade and target markets.

• NTOs will have a means to draw theattention of concerned agencies to thepossibilities of cross-border travel.

• Misconceptions of security issues willbe exposed.

• Travel media will be exposed toSASEC’s “hidden” assets.

• SASEC tour operators will share aconstructive experience.

• Easing of border / visa formalities.

Up to $100,000.

The project will be largely self-funding.

Individual vehicles will be sponsored and/orindividual participants will pay their ownway. NTOs and tour operators will combineto seek sponsorship for hosting activities.

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May 04 – TWG and development partnershold discussions.

The project will be spread over manyyears and membership of the alliance willgrow over time.

With joint marketing it will becomeincreasingly more palatable to addressproduct standards and codes of conduct ona subregional basis.


Nepal (Leader), India, Bangladesh, andBhutan.

Development Partners: UNESCO, STN,ICIMOD, SNV, TMI, WWF, and ECOSS.

NTB, with ADB’s assistance, will canvassinterest in this project among agenciesassociated with ecotourism and concernedabout standards of tourism resourcemanagement. UNESCO, ICIMOD, SNV, TMI,and WWF have all expressed interest.


Potential Development Partners:Government of India, SATTE MarketingCommittees in each country, SATTE, privatesector, and all other development partners.

DOT India will implement with assistancefrom SATTE on commercial aspects.

30 Jun 04 - Event information included incontent provided by NTOs to DOT Indiafor Project 1.1.

Jul 04 to Feb 05 – DOT India and SATTEcoordinate implementation. ADB assists.

Mar 05 – Launch at SATTE

To be successful, the calendar needs to bewidely distributed.

Bhutan (Leader), India, Bangladesh, andNepal.

Development Partners: PATA and SATTE.

Bhutan, with ADB’s assistance, willcoordinate the private sector. NTOs andLTOs to implement the project in the nameof the TWG. NTOs and LTOs will arrangetravel authorizations and hosting.

Mid-Jul 04 – India will explore theprospect of sponsorship by a carmanufacturer.

31 Jul 04 – Bhutan will circulate a plan ofaction, detailing implementation steps

Although four-wheel- drive vehicles will beused, the caravan will remain on existingroads in order to avoid negativeenvironmental impacts.

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3.2. Bagdogra Tourism Gateway and Hub Planning Study


3.3. Reducing Impediments to Subregional Travel

Impediments to travel are common to allmember countries. This project takes along-term, macro view with regard tobarriers to SASEC tourism. Key problemareas to be addressed include borderformalities, visas and permits, airlineaccess, currency use, and tour operatorregulations. Through a series of studies,workshops, and seminars, key impedimentswill be identified and solutions found.Monitoring of SASEC tourist patterns willcontribute to the strategic direction ofSASEC tourism development. An idea forthe long term is a “South Asian Traveler”facilitation system that will assist travel foridentified, pre-booked groups.

• Fundamental improvements tothe attractiveness of the subregion totourists and to the viability of tourismindustries.

• Interventions to improve accessand connectivity will complementproduct development and tourismmarketing;

Up to $250,000 initially.

In the long term, the “South Asian Traveler”facilitation system will cost $1 million.

Multilateral and bilateral donors will beasked to assist by funding studies andconvening workshops and seminars.UNESCAP’s advice will be sought onprospective sources of funds.

3.4. Asian Highway Improvements Advocacy

Travel in the SASEC subregion is constrainedby bad roads, poor linkages and minimalwayside amenities. Realizing the tourismpotential of the Asian Highway withinSASEC will greatly enhance opportunities forpro-poor tourism.

TWG will become the voice of SASECtourism in support of tourism-relatedimprovements to the Asian Highwayconcept. Asian Highway tourism projectideas with merit will be promoted.

• Enhanced visitor comfort andconvenience, encouraging more visitorsto travel by road.

• Poor communities able to participate intourism. Pilgrimage trips encouraged.

• Contribution to the rationale fortransport sector projects.

• Tourist driving routes developed.

Up to $250,000.

JBIC is willing to assist, potentially jointlywith ADB, to develop a SASEC version ofthe Michi no Eki community-based roadsidefacilities concept.

Infrastructure projects will be asked toinvolve TWG as the voice of SASEC tourism.

Limited international access to areas of thesubregion impedes tourism growth.Opening Bagdogra as an international airhub would significantly alleviate thisconstraint. Directly benefited would betourist areas in Darjeeling, Sikkim, andIndia’s North East States. Also benefitedwould be Bhutan, north Bangladesh, andeast Nepal.

• Perspective of subregion’s tourismindustry will be clarified.

• New and innovative tourismpatterns will be outlined.

• Economic benefits of a Bagdogratourist gateway and hub will bedefined,

• Rationale established for newinfrastructure projects.

Up to $100,000.

Government of India will fund andimplement this Study. DOT India willcoordinate the Study with assistance asrequired from key stakeholders, includinginterested development agencies such asJBIC and ADB. Subregional tourism industrygroups and interested transport operatorswill be asked to assist in kind.

A joint, subregional Bagdogra TourismGateway and Hub Planning Study willdefine the tourism benefits of developingBagdogra as an international airport.

• TWG engagement with thesubregion’s tourism private sector.

• Operational linkage forged withSASEC Transport Working Group.

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India (Leader), Bhutan, Bangladesh, andNepal.

Development Partners:UNESCAP and PATA.

TWG will ask UNESCAP to assist. Wherepracticable, workshops and seminars will bescheduled around TWG meetings or SASECevents.

PATA has expressed interest in assisting theSouth Asian Traveler facilitation systemidea.

30 Jun 04 – ADB will circulate a paper onthe processes being followed by othergroupings such as GMS and BIMST-EC.

31 Aug 04 – DOT India and UNESCAP willcirculate a joint implementation strategy.

This is envisaged as a long-term project thatmay spin off other projects.

India (Leader), Bhutan, Bangladesh, andNepal.

Development Partners:JBIC, ADB, and UNESCAP.

DOT India will approach JBIC, coordinatetourism industry inputs to infrastructureprojects, and establish links to the SASECTransport Working Group.

Feb 05 – DOT India and JCIB will reportprogress of Michi no Eki concept.

Feb 05 – UNESCAP will report on progressin its relevant programs.

Feb 05 – DOT India and ADB will reporton coordination with the SASECTransport Working Group.

TWG needs to maintain an active interest toensure that improvements in themanagement of tourism resources keepspace with tourism development.

India (Leader), Bhutan, Bangladesh, andNepal.Development Partners:JBIC, ADB,and SASEC Transport Working Group.

DOT India will implement. Arrangements willinclude oversight of Study progress bytransport and tourism officials from SASECgovernments and the active involvement atkey stages of planning by interesteddevelopment partners such as JBIC and ADB.

31 Aug 04 – DOT India circulates draft TORto key stakeholders.

Jan 05 – Study completed.

Options for mobilizing any financialresources required will be an importantelement of the Study.

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4.2. South Asian Host

Facilitating the process of upgradingSASEC’s human resource development intourism is a priority in all countries. SASECtraining institutions require technicalsupport and basic skills training needs tobe benchmarked against international bestpractice levels.

Through UNESCAP, APETIT will be asked toprovide leadership in evaluating nationaltourism training capabilities, identifyingneeds and opportunities for technicalassistance, implementing train-the-trainerprograms, and identifying needs forrefurbishment of training facilities.

• Stronger links between the traininginstitutions of SASEC.

• “Centers of excellence” in tourismtraining developed throughout SASECand beyond (i.e. BIMST-EC / SAARC).

• Benefits of improved standards oftraining flow through to the industry.

• The need to travel outside the region fortraining will be removed.

Up to $1 million. Seed funding of at least$25,000 is required to begin.

UNESCAP’s advice will sought. ADB has aregional TA in the pipeline for HRD inSASEC tourism. TWG has asked that this TAbe tailored to assist the early stages of thisproject. Bilateral assistance will be soughtthrough APETIT and through existingSASEC country connections.

This project will contribute directly toenergizing subregional tourism through“good host” training to encouragefriendliness, increase awareness of tourismand foster attitudes of neighborliness in frontline people.

South Asia Host courses will train airport staffand officials, transport workers, and hotel,restaurant, and café staff. Trial on-site coursesin selected gateway cities will pilot thescheme. If successful, subsequent courseswill be offered elsewhere on a user-paysbasis.

• Trainees will deliver higher levels ofvisitor service.

• Greater subregional understanding,increased friendliness, increasedtourism flows, and associated benefitsto local economies.

• A complementary counterpoint to thesubregional joint marketing andstarting point for sustainabledestination management.

Up to $500,000.

TWG will respond to interest in this projectfrom funding agencies. Once underway,NTOs would promote the idea of user-payswith front line agencies and the privatesector. Ultimately, training could be on acommercially viable basis

4.3. Training for Travel Media

SASEC tourism needs an effective industrymedia. The tourism and travel media playsa vital role in tourism. Industry magazinesand newsletters enhance communicationwithin the industry and, crucially, linksellers with buyers.

Fostering higher standards of journalism is aworthy aim. This project envisages a one-time, customized training course in traveland trade writing for the tourism and traveljournalists of the subregion.

• This short project will be confidenceboosting for TWG.

• Travel writers will be trained and othermedia focused on SASEC.

• TWG activities will be brought to theattention of the media.

• Potential visitors and current visitorswill be better informed.

$50,000.

A sponsor will be sought. A course chargeper participant will cover the costs of thevenue. TWG has asked ADB to consider acontribution from the proposed regional TAon HRD in tourism.

4.4. Projet Management Training for NTOs and LTOs

Project to up-grade skills of NTOs and localor state tourism organizations (LTOs) inproject management

A 10-day course is envisaged, with 10 to 15participants.

• Boost capabilities and confidence ofNTOs and LTOs to participate insubregional cooperation projects.

• Increased confidence in projectmanagement skills will ultimatelyimprove success of all TWG programs.

• Create networks useful for the imple-mentation of cooperative projects andgenerally improve the efficiencies of NTOs.

Up to $500,000.

ADB has been asked to considercontributing from its proposed regional TAon HRD in tourism. WTO has offeredtechnical assistance.

Program 4. Developing Human Resources4.1. Encouraging the Network of Asia Pacific Education and Training Institutes in Tourism (APETIT) to

Collaborate with South Asia


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Bangladesh (Leader), Bhutan, India, andNepal.

Development Partners: UNESCAP, APETIT,and ADB.

APETIT normal activities involveinformation management, communicationlinks, training and advisory services, sharingexperiences, and research anddevelopment.

30 Jun 04 – Bangladesh will approachUNESCAP (Mr. Yamakawa)

Feb 05 – Bangladesh and UNESCAP willreport implementation plans to TWG.

This prospect received strong endorsementat all the stakeholder workshops duringpreparation of the SASEC TourismDevelopment Plan.

Bhutan (Leader), Bangladesh, India, andNepal.

Development Partners: interest is beingsought.

A donor will be asked to assist by providingone or two experienced persons to lead theteam of trainers. India’s experience with itsCapacity Building Program will be tapped.

Feb 05 – NTOs will present case studiesof their experiences in this field to TWG.

Nepal (Leader), Bangladesh, India, andBhutan.

Development Partners: PATA has expressedinterest in assisting, and ADB.

Two or three experienced travel journalistsfrom South East Asia will be commissionedto design and implement the course.

31 Jul 04 – NTB will report to the NTOswith an implementation plan, including arequest to ADB.


Development Partners: ADBand WTO.

NTB will work with the sponsoring agenciesto arrange the course on behalf of TWG.

Dec 04 – Target date for implementation.


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Program 5. Developing Ecotourism Based on Nature and Culture5.1. Integrated Project on Trekking in the Himalaya


Trekking areas are constrained by access,security and a lack of marketing. The GreatHimalayan Trail concept will link marketingand product development, opening newcircuits and cross-border treks, allowingpoor rural communities to benefit fromtourism. The project will involve jointmarketing, addressing cross-border issuesand preparing remote villages for tourism.Atrekking route will eventually link theKanchenjunga Conservation Area in Nepalwith Khangchendzonga National Park’strekking areas in Sikkim and, via either theNathu La in Sikkim or Phari Dzong inTAR,PRC, to Ha or Paro in Bhutan.

• Heightened awareness of and demandfor trekking.

• Creation of a model for lateral trekking.• Market linkages for various ecotourism

development projects.• South Asian ecotourism put on the

world tourism stage.• Environmental, social and cultural

impact issues addressed.• Self-esteem, dignity and livelihoods of

mountain people raised.

$2.5 million. An annual budget of about$100,000 will be required to start the project.

TA from multilateral agencies will be soughtto start the process. INGOs and bilateralagencies with interest in ecotourism will beasked to pool resources.

5.2. Integrated Project on Ecotourism in Ganga-Brahmaputra

5.3. Integrated Project on Adventure Tourism in South Asia

• Increased demand for adventuretourism in the subregion.

• Adventure tourism profession will growin confidence and standards.

• Intra-regional and inter-regionalprofessional links will be enhanced.

• New products will be created, attractingnew adventure segments andspreading tourism benefits.

$2.0 million. Seed budget of $20,000required.

Government of India will fund the initialstages of this project. Development partnerswill be asked to assist the formation of theNetwork. The Network itself would be self-supporting, except where its activities aresupported by a funded TWG project.

Project to develop adventure tourism throughmarketing and professional development. Theadventure travel industry, domestic youth andstudents, and corporate groups will betargeted.A South Asian Network of ProfessionalAssociations of Adventure Tourism Operatorswill be formed to advise and assist.

New adventure tourism destinations will bepromoted and a subregional adventuretourism training facility will be championed.

• Improvements to travel facilitation.• Heightened levels of awareness among

tourism industry operators.• Private sector more willing to invest in

tourism products.• Tourism development agenda adopted

by infrastructure projects.• New products created, attracting new

markets, increasing tourist numbersand spreading the benefits.

$2.0 million. Seed budget of $100,000required.

DOT India will coordinate Government ofIndia agencies able to assist. Otherpotential development partners will besought from development agenciesassociated with India’s North East and inBangladesh. Where large infrastructure isrequired, the needs will be communicatedto other SASEC Working Groups.

This project will establish the Ganga-Brahmaputra river basin as a tourismdestination, based on wildlife and river-basedtourism. Cooperation in overcoming barriersto tourism and joint promotion will heightendemand, and ultimately reduce poverty. Jointmarketing will focus on establishing an imagelibrary, targeting the regional tourism industryand international buyers with interest inSouth Asia. Overcoming barriers anddeveloping infrastructure will be carried outthrough coordinated advocacy activities. Theprivate sector will be encouraged to developnew products.

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Development Partners: TMI, WWF, ICIMOD,SNV, ECOSS, and Austrian Assistance.

Proposals will be sought from developmentagencies to assist in the coordination ofthis project. UNDP Nepal will be requestedto integrate the concept into the Nepal-based TRPAP Program and to foster linkedUNDP projects in India and Bhutan.

31 Jul 04 – NTB will circulate a TWGrequest for proposals from agencieswilling to assist.

Feb 05 – NTB will report progress andpropose an implementation strategy.

New trek developments will need to bewell controlled, government approved, andclearly focused on raising self-esteem,dignity and livelihoods of mountainpeople.

India (Leader), Nepal, Bangladesh, andBhutan.

Development Partners:International Institute for Adventure Sportsin Sikkim, NTB, ECOSS, and bilateralagencies

The Network will meet once a year inconjunction with the STF(see Project 5.4).

Feb 05 – India, assisted by NTB andECOSS, will present a progress report toTWG on work to establish the Network.

Feb 04 – India and Bangladesh willpresent a detailed implementationproposal to TWG.

In the future, in addition to the TWGmeeting, a project coordination meetingwill be hosted every second year by one ofIndia’s North East states followed, in theyears between, by Bangladesh, Bhutan,and Nepal in turn.

Bangladesh and India (Joint Leaders),Nepal, and Bhutan.

DOT India, Bangladesh, and the states ofIndia’s North East will lead this projectinitially, inviting Bhutan and Nepal in onceit is underway. A key starting point will bethe new icon cruising product on theBrahmaputra River.

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5.4. South Asia Sustainable Tourism Forum


5.5. SASEC Integrated Product Development Plan for Ecotourism Based on Nature and Culture

South Asia could be a leader in world ecotourism.This could be facilitated by bridging the dividebetween resource managers and INGOs active inecotourism projects, and ecotourism operatorsof SASEC’s tourism industries. The means to dothis is a Sustainable Tourism Forum (STF), to beheld every year in conjunction with the TWGmeeting.

The SFT will facilitate the discussion ofsubregional issues, joint product planning andmarketing, and the introduction of internationalbest practice. It will also foster cooperation, andshowcase new sustainable natural and culturalheritage-based tourism products.

• Partnerships forged betweendevelopment agencies, resourcemanagers, and the private sector.

• A platform created for small operatorsto make market links with the widerindustry.

• Sharing of lessons learned, andsubregion-wide problems addressed.

• Methodology in pro-poor tourismadvanced.

• South Asia positioned as home to theworld’s best in ecotourism.

$200,000. Seed sponsorship of $10,000required for the first four SFT events.

Seed sponsorship on a diminishing basis—in the manner of ADB’s initial support forthe Mekong Tourism Forum—is envisagedfor the first four events, after which the aimwill be self-funding through multiplesponsorship arrangements.

All projects under Program 5 will becoordinated by an Integrated ProductDevelopment Plan for Ecotourism Based onNature and Culture. Not a “masterplan,” thePlan will identify ecotourism productdevelopment projects, both subregionaland national, for implementation under theguidance of TWG. NTOs agreed to make thepreparation of this Plan a project withinProgram 5, provided the other proposedprojects in this Program go forward in themeantime.

• Integration of SASEC’s ecotourismproduct development activities withWTO’s international activities inecotourism and sustainablelivelihoods, including the WTO-ledSustainable Tourism for the Eradicationof Poverty (STEP) Program.

• Systematic identification of ecotourismproduct development needs andopportunities across the subregion.

$500,000.

WTO has offered to approach UNDP NewYork on behalf of TWG to seek funding forthe Plan. This offer is subject toendorsement by SASEC NTOs of the FinalReport of the SASEC Tourism DevelopmentPlan, and a request from all four SASECgovernments to WTO.

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Nepal (Leader), India, Bangladesh, andBhutan.

Development Partners: TWG will inviteinterest from ICIMOD, SNV, TMI, WWF,ECOSS, ENVIS, STN, and UNDP’s TRPAPprogram in Nepal.

Development partners and the host NTOwill convene an STF Organizing Committeewell in advance.

Jul 04 - NTB, with ADB assistance, invitesinterest from prospective developmentpartners and coordinates responses.

Sep 04 – NTB introduces developmentpartners to the BPC and encouragesplanning for the first STF.

Development Partners: WTO.

Implementation of the Plan will be by WTOin cooperation with TWG and SASEC NTOs.

31 Aug 04 – NTOs endorse the FinalReport of the SASEC TourismDevelopment Plan.

31 Aug 04 – Letters of request to WTOfrom all NTOs.

Feb 05 – WTO reports to TWG on responsefrom UNDP New York.

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Program 6. Developing Buddhist Circuits6.1. Footsteps of Lord Buddha


6.2. Living Buddhism in the Himalaya

Focused on potentially the world’s premierBuddhist circuit, joint tourism planning andmarketing will be overseen by India andNepal. Destinations on the circuit are: Rajgir,Nalanda, Bodh Gaya, and Vaishali in Bihar;Sarnath, Kushinagar, and Sravasti in UttarPradesh; and Lumbini in Nepal with its sevensurrounding sites, including Kapilavastu.Lumbini and Bodh Gaya are cultural WorldHeritage Sites.

The project will introduce tourism into themanagement and planning of sites, addresssecurity issues, air links, bad roads, and poorrail connectivity.

Coordinated market research is envisaged ateach site. On-site interpretation, signage, guidetraining, and local tourism awareness will beincluded.

• Sound market research.• Tourism development agenda

introduced into site management.• Regional and international market

demand stimulated.• Visitor experience improved.• Tourism benefits reach surrounding

communities;• Stakeholders more aware of the

importance of tourism.

Up to $2.5 million.

Government of India has agreed tocoordinate TWG interests with JBIC futureplans for the circuit. JBIC has expressedinterest in collaboration with ADB on thisproject.

Other conservation and developmentagencies will be encouraged to support jointmarketing activities and sustainable tourismmanagement.

Cooperative marketing, productdevelopment and training activities will befocused on living Buddhism attractions. Theshared aims are resource preservation andthe desire to broaden current marketsegments and extend length of stay.Marketing activities will be aligned withSASEC branding. Joint planning for visitorservices will involve wider stakeholders ateach site. Codes of conduct will bedeveloped to improve visitor-hostrelationships, and trainers trained in bestpractice techniques to involve localcommunities as custodians and participantsin tourism benefits.

• Growth in demand, lengthened stays,and greater awareness of livingBuddhism sites.

• New products and new circuitsdeveloped, carefully segmented, andexisting products improved.

• Guest-host codes of conduct to helpminimize insensitive behavior and othernegative impacts of tourism.

• Improved community awareness of thebenefits of tourism will result inincreased care for sites and pride inshared culture.

Up to $2 million.

Existing NTO budgets will be harnessed forpromotional, coordination, and advocacyactivities.

Funding will be sought from donoragencies, especially bilateral donors withlinks to source markets. Cooperation ofairlines and major operators will be sought.International agencies, including UNESCO,will be asked for collaboration.

6.3. Buddhist Art and Archaelogy in South Asia

Project focusing on promotion andconservation of South Asia’s lesser-knownBuddhist art and archaeology sites.

Joint action is needed to develop andposition ancient Buddhist sites tosightseeing and cultural groups, pilgrims,and special interest market segments, whileensuring the sustain-ability andpreservation of the sites.

Focused planning, advocacy, jointmarketing, improved visitor interpretation,guide training, tourism awareness training,and the fostering of handicrafts will beincluded as project activities.

• Greater awareness of Buddhist art andarchaeological products.

• More integration of conservation anddevelopment at site level.

• Local, national and subregional pride inhistorical traditions, cultural heritage,and shared history.

• Enhanced visitor experience andincreased tourism flows withcorresponding local benefits.

• Potential negative impacts of tourismaddressed and minimized.

Up to $1.5 million.

TWG will support UNESCO’s search forassistance from SASEC member countriesand multilateral agencies. Support frombilateral donors such as France, Italy, andNorway, from Buddhist circuit sourcemarkets–Japan, Republic of Korea, andThailand, from Buddhist organizations, fromother development agencies, and fromINGOs, trusts (such as INTACH) andmuseums.

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India (Leader) and Nepal.

Development Partners:Government of India, JBIC, and ADB.

An India-Nepal Coordination Committeewill be formed. Joint tourism planning andpromotional activities will be led by DOTIndia in close consultation with NTB andkey stakeholders such as Buddhist societiesand the private sector. A regional TA-styleproject will start the process.

Feb 05 – India, Nepal, JBIC, and ADB topresent a developed implementationproposal to the TWG.

Bhutan (Leader), Nepal, and India.

Led by Bhutan and the Namgyal Institute ofTibetology in Sikkim, NTOs will undertakecoordinated implementation programs,working with relevant stakeholders. Donorswill be asked to contribute overarchingjoint planning studies.

Feb 05 – Bhutan and the Namgyal Instituteof Tibetology in Sikkim will jointly present astrategy for a joint campaign to TWG.

India and Bangladesh (Joint Leaders), andNepal.

DOT India and BPC will cooperate withUNESCO and INTACH in undertaking anassessment of planning, marketing andtraining needs. Subproject sites will beidentified. Sites with donor-assistedprojects already in place will be asked tocoordinate. NGOs, including INGOs, will beasked to assist with tourism awareness andcommunity training activities.

Late 04 – UNESCO and INTACH willconvene a subregional caucus.

Feb 05 – DOT India, BPC, and UNESCO willjointly present an implementation strategyto TWG.

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Worldwide, tasks such as destinationmarketing are increasingly undertaken bypartnerships of the public and privatesectors. By becoming a public-privatepartnership (PPP) itself, TWG will take anadvocate’s position, ensuring that SASEC’svarious tourism institutions are continuallystrengthened and that tourism sectorreforms are undertaken.

The first focus of TWG advocacy will be toensure support and participation fromnational and state governments and theirindustry partners in the SASEC TourismDevelopment Plan.

• PPPs in tourism combine the smart andnimble thinking of the private sector withthe power and responsibility ofgovernment. When focused on a tasksuch as destination marketing, a PPP willact with more confidence and focus thanwould either sector acting alone.

Up to $500,000.To be discussed with PATA and ADB.

Program 7. Public-Private Sector7.1. Tourism Investment Fund


Small and medium-sized investors have themost difficulty securing financing, creatingan impediment to tourism growth at thislevel. The SASEC Tourism Investment Fund(TIF) concept involves pooling the equity ofinfluential tourism investors in thesubregion. By encouraging equityparticipation by governments and MFIs, theTIF will help finance new investments intourism facilities, including bankableinfrastructure projects.

When fully established in the subregion,the TIF could be expanded to other SAARCmember countries.

• The TIF will act as a catalytic force infacilitating new tourism investments,including infrastructure, and in creatinga positive environment for investment.

• The TIF will contribute to increasingtourism arrivals and extended visitorstays, leading to new employmentopportunities in poor areas, increasedtourism revenues to governments, andother benefits.

Up to $500,000 initial funding.

The TIF to be majority owned by privateinvestors. Governments and MFIs invited totake equity positions. The initial funding isneeded to develop the concept and toidentify the founding shareholders. Withco-financing, the Fund could be a majorfactor in helping to develop the tourismindustry.

7.2. Public-Private Partnerships

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Nepal (Leader), Bhutan, Bangladesh, andIndia.

Development Partners: PATA.

Much of this project could be implementedby TWG itself. PATA has indicated interest insupporting TWG in implementing thisproject.

Jun 05 – NTB will open liaison with ADBand PATA.

Feb 05 – NTB, ADB, and PATA to present ajoint analysis of this idea to TWG.


India (Leader), Bhutan, Bangladesh, andNepal. Further assessment and developmentof the concept is required in consultation withpotential investors. Venture capital experts inthe subregion will be asked to determineinterest in the TIF.

Feb 05 – ADB to present analysis of thisidea to TWG.

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There is good potential to expand thealready strong ecotourism in Sikkim andDarjeeling by developing cross-bordertrekking and other tourism linkagesbetween the KCA in Nepal andKhangchendzonga National Park in Sikkim.Cross-border treks in the sacred landscapeshared between East Nepal, West Sikkim,and TAR, PRC could become a uniqueecotourism- adventure product when securityimproves and border restrictions ease.

3.1. Road improvementsand wayside amenitiesin Nepal.

3.2. A program ofecotourismimprovements in theKCA.

3.3. An Ecotourism Planfor West Sikkim.

3.4. A visitor managementstrategy for NorthWest Bengal.

Improvementin securityand theeasing ofborderrestrictions.

The Footsteps of the Lord Buddha circuit isalready the most popular Buddhist circuit.The circuit includes Lumbini, Kapilavastuand associated sites in Nepal, andKushinagar, Sarnath, Nalanda, Rajgir, andBodh Gaya in India. To take advantage offavorable trends, the Footsteps of the LordBuddha circuit needs to be furtherdeveloped as the key product to deliverSASEC’s positioning as the BuddhistHeartland.

2.1. Road improvements inIndia.

2.2. Wayside amenities inIndia.

2.3. Visitor facilities andinterpretation in India.

2.4. Improved visitorfacilities in Nepal.

2.5. Bhairahawa Airportimprovements.

2.6. Water supplyinfrastructureimprovements atLumbini.

Good tourism development potential arisesfrom the newly opened Nathu La road fromSikkim to the Chumbi Valley in TAR, China.The cross-border “Nehru Trek” has thepotential to be a signature subregionaladventure trek product, combining threecountries and appealing to domestic andinternational markets.

4.1 Tourism AwarenessProgram in Sikkim.

4.2. Wayside amenities inSikkim.

Improvementin security.

Major potential for a wildlife viewingtourism circuit links the protected areasof Royal Bardiya National Park andSuklaphanta Wildlife Reserve, Nepal withDudwa National Park in India. The circuitextends also to Jim Corbett National Parkand Nainital. Improved roads and borderfacilities will encourage travel operators topackage this circuit when security improves.

1.1. Dhangadi Airportimprovements.

1.2. Border crossingfacilities and waysideamenities in Far WestNepal.

1.3. Wayside amenities inUttar Pradesh.

Key Area 1: Bardiya and Suklaphanta to Dudwa National Parks

KKKKKey Area Programs ey Area Programs ey Area Programs ey Area Programs ey Area Programs (TWG will keep a supportive oversight of national projects in Key Areasand promote cross-border planning and coordination.)

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Key Area 2: Lumbini to India Buddhist Site

Key Area 3: Kanchenjunga to Sikkim and Darjeeling

Key Area 4: East Sikkim (Nathu La) to West Bhutan

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The World Heritage Site mangrove forestsof the Sundarbans are visited fromBangladesh and India. Strong domesticvisitor flows come from Dhaka andparticularly from Kolkata. Opportunitiesexist for joint marketing, sharing responsesto conservation management issues, andthe careful introduction of new ecotourismcircuits combining the two countries.Tourism has a serious role as an alternativelivelihood to reduce destructivedependency on the fragile environment.More participation by the local communityin tourism is the key.

6.1. Joint SundarbansEcotourism Strategy.

6.2. Village tourismhomestay and junglecamp program inBangladesh.

6.3. Community-managedconservation andinterpretation centerin the IndianSundarbans.

6.4. Community-managedconservation andinterpretation centerin the BangladeshSundarbans.

Participationof localcommunities.

Key Area 7: Paharpur to Siliguri and Bagdogra

The land border between India andnorthern Bangladesh at Banglabandhmeans that the Buddhist circuits ofPaharpur can be promoted from the northusing the Bagdogra and Guwahatigateways. Tour operator awareness, poorroads, limited accommodations, andsecurity are constraints. Paharpurmonastery, including its surrounding sites,is an icon product in SASEC’s Buddhist Artand Archaeological positioning.

7.1. Wayside amenitiesbetween Bagdogra andPaharpur to Dhaka.

7.2. Paharpur Monasteryexcavations.

Key Area 6: Sundarbans Protected Areas

Key Area 5: Manas Protected Areas




The World Heritage Site status of theManas national parks on either side of theborder between India and Bhutan presentsexcellent tourism potential. The Manasprotected areas could showcase thesubcontinent’s wildlife tourism. Currentsecurity constraints need to be overcome.Opening the land border at Gelephu wouldcreate ecotourism circuits within Bhutan(Zhemgang). The combined Manasprotected areas have the potential to be aworld ecotourism model.

5.1. A joint EcotourismStrategy for theManas protectedareas of Bhutan andIndia.

5.2. A handicraft programbased in India.

Improvement in security.

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Developing the Mainamati to Pilak Key Areawill establish a new Buddhist circuitproduct. There is ecotourism potential inunique forests in both India andBangladesh that protect the endangeredChashma, or spectacled monkey.Development of the Mainamati to PilakBuddhist circuit will require cooperationbetween the Government of Bangladesh,the Government of India, and the StateGovernment of Tripura.

8.1. Excavations atMainamati inBangladesh.

8.2. Visitor amenities atMainamati inBangladesh.

8.3. Visitor amenities atPilak, Tripura inIndia.

CooperationbetweenGovernmentofBangladesh,Governmentof India, andthe StateGovernmentof Tripura.

Key Area 8: Mainamati to Pilak, Tripura

Key Area 9: East Bhutan to Arunchal Pradesh

The opening of the land border east ofTrashiyangtse, Trashigang, and Sakteng atthe far-eastern end of the Great HimalayanTrail will create new adventure trekkinglinkages with Arunchal Pradesh (TawangMonastery and Bomdila). Community-based tourism will bring benefits to remoteeastern Bhutan and India’s North East.These opportunities will be furtherextended by re-opening the Samdrup/Jongkhar road crossing.

9.1. Adventure Trekking.

With a strong pro-poor rationale, goodopportunities exist to promote the“unexplored” North East of India. Theecotourism products of the North East—initially in Assam, Arunchal Pradesh, andNagaland—will produce some of the iconicfeatures of SASEC tourism. With particularemphasis on cultural, ethnic, andadventure products, and careful recognitionof their protected-area status, these littleknown destinations require that tourismawareness be raised and that air linkagesand security be improved.10.1 North East Marketing Strategy and

Action Plan.10.2. Wayside amenities

and tourist roadimprovements.

10.3. Village homestayprogram in theNorth East.

10.4. Handicrafts programin the North East.

10.5. Inventory of culturaland natural sites.

10.6. Trekkingopportunities study.

Key Area 10: India’s North East States

Key Area 11: Kathmandu Air Hub

Many air links within the subregion useKathmandu as a hub. This, coupled withNepal’s strong ecotourism and Buddhistcircuit product focus and the futurepotential for growth in regional airlines,warrant special attention to the KathmanduValley as a key area.

11.1. Air traffic safetyproject.

11.2. Visitor ServicesManagement Planfor World Heritagesites of Kathmandu.




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APPENDIX 1: IDEAS FROM PLANNING WORKSHOPSAPPENDIX 1: IDEAS FROM PLANNING WORKSHOPSAPPENDIX 1: IDEAS FROM PLANNING WORKSHOPSAPPENDIX 1: IDEAS FROM PLANNING WORKSHOPSAPPENDIX 1: IDEAS FROM PLANNING WORKSHOPS

A. Ideas from Nepal National Workshop—24 January 2004

1. Coordinated Marketing

• Subregional branding.• Address seasonality problems through

promotion of cultural events and specialinterest tours.

• Regional events calendar.• Coordinate representation at existing

Industry Forums.• Coordination with Bay of Bengal Initiative for

Multi-Sectoral Technical and EconomicCooperation (BIMST-EC), etc.

• South Asia Subregional EconomicCooperation (SASEC) Tourism Secretariat inNepal Tourism Board (NTB) to coordinatemarketing.

2. Enhancing Product Quality

• South Asia industry standards andcertification.

• Develop a SASEC Sustainable TourismNetwork (based in NTB International Centerfor Integrated Mountain Development[ICIMOD]).

3. Facilitating Travel

• Promoting regional hubs (e.g. Bagdogra,Kolkata, etc.).

• Strengthening key air corridors(Delhi / Kathmandu).

• Facilitating regional airlines operation.• New and improved international and

domestic airports with tourism rationale, i.e.Bharatpur, Bhairahawa, Mahendranagar,Taplejung, Bhadrapur.

• Safety and standards in aviation (i.e.domestic airlines).

• Hospitality training for immigration andcustoms staff etc.

4. Developing Human Resources

• Training of Trainers in tourism studies.• Linking centers of excellence—education/

training forums.• Training of travel media.

• Project management training for nationaltourism organizations (NTOs) and localtourism organizations (LTOs).

5. Developing and Promoting Ecotourism Basedon Nature and Culture

• Protected area circuits—Kanchenjunga andBardiya.

• River-based tourism alliance.• Index of ecotourism operations.• Tourism / conservation links.• Kanchenjunga as a Key Area.• Bardiya Dudwa as a Key Area.• Historic monuments inventory.• Historic site management.• Review and rationalize Bangladesh, Bhutan,

India and Nepal (BBIN) standards (withICIMOD).

• Standards associated with “jewels” (linked tomarketing.

• Training of village-level trainers, i.e.homestay, village guides, etc.

• Branding—Eastern Himalaya and Delta?• Launching promotional programs that will

establish Nepal as ecotourism destination,andproduce collateral to support thispositioning, i.e. brochure, CD, website,etc.

6. Developing and Promoting Buddhist Circuits

• Develop Kathmandu Valley Buddhist circuits(with Japan Bank for InternationalCooperation [JBIC]).

• Improve the appeal of the Lumbini area(including Kapilavastu, Sagarhawa andRamgram) as a component of a cross-borderBuddhist circuit with India.

• Include high Himalayan Buddhistdestinations (i.e. Thyangboche) in Buddhistcircuit concepts.

• Prepare an inventory of historic monuments.• Training in historic site management.• Review and rationalize SASEC-wide

standards with UN Educational, Scientificand Cultural Organisation (UNESCO).

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• Standards associated with “jewels” (linked tomarketing).

• Branding the region’s Buddhist Circuits.• Promotional programs that will establish

Nepal as a Buddhist circuit destination.• Subregional promotional collateral to

support this positioning, i.e. brochure, CD,website, etc.

• Training of village-level cultural guides, etc.

7. Enabling the Private Sector

• Foster political commitment.• Promote foreign and regional investment,

i.e. airlines.

8. Developing Key Areas(Including National Projects)

• New facilities and improvements along AsianHighway, including information at Itahari,Butwal, and Kohalpur to facilitate Buddhistcircuit products.

• Develop improved tourism border facilities,i.e. car parks, waiting halls, information,beautification at selected (Buddhist circuit)border crossings, i.e. Sunauli, Karkarbita,Birganj / Rexaul.

• New facilities and improvements along AsianHighway, including information at Itahari,Butwal, and Kohalpur and new road link toTaplejung to facilitate ecotourism products.

• Develop improved tourism border facilities,i.e. car parks, waiting halls, information,beautification at selected (ecotourism-related) border crossings, i.e. Sunauli,Karkarbita, Birganj / Rexaul, Dhangadhi /Gauriphanta.

• Advocate new border openings for tourism,i.e. Pashupatinagar, etc. to facilitateKanchenjunga-Sikkim-Darjeeling-Bhutanlinkages.

B. Ideas from Bhutan National Workshop—5 February 2004


• Branding / joint promotions.• Address seasonality problems through

promotion of new products and specialinterest tours.

• Partnerships with Druk Air for promotion—Bhutan-India-Nepal links with Kathmandu,Gaya, and beyond to Yangon and Bangkok.

• Eastern Himalaya events calendar.• Bhutan royal centenary 2007.• Premier pass fast track.• Harmonization of data collection.• Coordinate representation at existing

Industry Forums.• Coordination with SAARC, BIMST-EC, etc.—

time lines for results.


• Distinct national identities.• SASEC Sustainable Tourism Network.• SASEC focal person in each NTO to

coordinate.• Risk management within NTOs.


• External hubs at Bagdogra and Guwahat.• Foster regional airlines.• “Himalayan Hospitality” program for

immigration and customs staff at bordercrossings and major airports. Also for otherfront-line personnel.


• Sharing experiences in tourism planning.• Networking training institutions—new

(Tinley Dorje’s) Department of Tourism (DoT)Training Center.

5. Developing and Promoting Ecotourism Based onNature and Culture

• Joint marketing, including branding ofEastern Himalaya ecotourism–new slogan(s).

• Promotional programs that willestablish Bhutan as ecotourismdestination, andproduce collateral to support thispositioning, i.e. brochure, CD, website etc.

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APPENDIX 1

• Advocating for the opening of new bordercrossings at Samdrup Jongkhar, Gelephu,Nathu La (Kanchenjunga-Sikkim-Darjeeling-Tibet-Bhutan linkages) and East Bhutan(Sakteng Arunachal).

• Planning border crossing amenities atPhuentsholing, Samdrup Jongkar, Gelephu(when they open), including car parks, waitinghalls, information, beautification etc.

• Planning tourism amenities alongPhuentsholing-Thimphu, lateral andWangdue-Tsirang highways.

• Joint training and networking of tourismpersonnel and natural resource managers.

• Training trainers to improve quality ofecotourism services.

• Establish standards for Bhutan homestayand local guiding.

• Regional codes of conduct—guest-hostissues.

• Debate community-based tourism activities.• Involve school clubs—nature / ecotourism.


• Joint marketing, including branding ofEastern Himalaya and promotion ofecotourism and Buddhist circuits—newslogan.

• Promotional programs involvingestablishing Bhutan as Buddhist circuitdestination,reinforcing Bhutan’s living Buddhismpositioning,encouraging new pilgrimage segments(Padmasambhava, Milarepa),Promoting meditation centers, retreats,traditional medicine and Buddhiststudies, andPreparing collateral to support thispositioning, i.e. brochure, CD, website etc.

• Advocating for the opening of new bordercrossings at Samdrup Jongkar, Geylegphug,Nathu La (Kanchenjunga-Sikkim-Darjeeling-Tibet-Bhutan linkages) and East BhutanSakteng / Arunchal.

• Planning border crossing amenities atPhuentsholing, Samdrup Jongkar andGelephu (when they open), including carparks, waiting halls, information,beautification etc.

• Planning tourism amenities alongPhuentsholing-Thimphu, lateral andWangdue-Tsirang highways.

• Joint training and networking of tourismpersonnel and historic resource managers.

• Training trainers to improve quality oftourism services on the Buddhist circuits.

• Standards for Bhutan homestay and localguiding.

• Regional codes of conduct—guest-hostissues.

• Debate community-based tourism activities.• Improve the delivery of culture (standards of

interpretation / guide training, etc.).


• Recognize Bhutan’s cautious approach andrationale for government interventions.

• Foreign investment.• Regional investments

(e.g. airline investment outside Bhutan).• Encouraging entrepreneurs.


• Develop border crossing amenities atPhuentsholing, Samdrup Jongkar andGelephu (when they open), including carparks, waiting halls, information,beautification etc.

• Develop tourism amenities alongPhuentsholing-Thimphu, lateral andWangdue-Tsirang highways.

• Develop protected area ecotourism productsin Royal Jigme Singe Wangchuk, Royal ManasNational Park, Nathu La region (trekking linkswith Tibet, Sikkim and Kanchenjunga) andSakteng-Arunchal.

• Develop Royal, Bhutan / India Key Area.• Develop Sakteng Arunchal, Bhutan / India

Key Area.• Develop Nathu La and links with Tibet,

Sikkim, Darjeeling and Kanchenjunga.• Develop domestic air links to Bumthang and

Trashigang.• Develop facilities for Bhutan as a pilgrimage

destination etc.

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C. Ideas from Kolkata, India National Workshop—12 February 2004

• Develop roads, wayside facilities and signageon road connecting Sarnath and Lumbini, andcreate tourist facilities at border of Nepalconnecting Lumbini and Kathmandu.


• Use human resource development (HRD)facilities in India to create a regional centerof excellence, linking all the other regionaltraining centers.

• Use competitive advantage in Englishlanguage.

• Training and communication skills fortourism officials—LTO training.


• Joint marketing including branding ofEastern Himalaya ecotourism.

• Emphasis on developing the North East—asa “protected place”.

• Promotional programs that will establishEast Himalaya as an ecotourism destination.

• Produce collateral to support thispositioning, i.e. brochure, CD, website etc.

• Develop Sundarbans as a unique product andlink this ecotourism with the unique ‘turtlebreeding’ in Orissa’s mangroves and beaches.

• Develop a new Hindu Pilgrim Circuit linkingPashupatinath, Kashi Vishwanath, andKamakhya temples.


• Training trainers to improve quality ofecotourism services.

• Developing and promoting river-basedtourism, including river cruises in the NorthEast, river running, fishing etc.

• Build the Darjeeling train into ecotourismproduct.


• Joint marketing, including branding ofEastern Himalaya and promotion ofecotourism and Buddhist circuits.

• Promotional programs that differentiatebetween Buddhist segments.

• Link North East ecotourism-cum-Buddhistcircuit of Manas, Kaziranga and TawangMonastery with Buddhist circuit.


• Branding / joint promotions.• Address seasonality problems through

promotion of new products and specialinterest tours.

• Joint promotion of Eastern Himalaya festivalsand events, including river festivals, religiouscelebrations etc.—calendar.

• Harmonization of data collection.• Promoting convention tourism, especially

small-scale.• Promoting handicrafts.• Differentiation between Buddhist segments,

recognizing that different segments areattracted by different pilgrimage sites.

• Establishing rail travel as a feature of travelin India.

• Tourism awareness program, includinginformation flows from North East andovercoming perceptions.


• Harmonize Manas protection with Bhutan.• Standards and certification.• Documenting Buddhist pilgrimage, cultural

and other heritage—detailed preservationmanual for each and training of local people.

• Develop SASEC “boutique”—combination offacilitation, orientation and souvenirs ofSASEC countries at Kolkata, Bagdogra,Guwahati and other airports.

• Linking ADB infrastructure initiatives in theNorth East with tourism “software” to enablelocal communities to engage in tourism.

• Joint approach to destination problemsolving (i.e. image, vehicle, hawkers,minimizing hassles, etc.).

• Tourism awareness to promote appreciationof regional tourists.


• Develop additional SASEC hub at Bagdograand network these with Thimphu, Paro, andDhaka for greater regional connectivity.

• Strengthen Kolkata, Varanasi, Guwahati,Gaya airports.

• Foster regional airlines.• Facilitate restricted area/inner line permits

to North East to make them easier and fasterto procure—using travel agencies.

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• Document Buddhist pilgrimage, cultural andother heritage—detailed preservationmanual for each and training of local people.

• Revive the concept of a “Buddhist CircuitTrain” covering Lumbini, Sarnath, etc.,featuring train travel in India.

• Joint training and networking of tourismpersonnel and historic resource managers.

• Training trainers to improve quality oftourism services on the Buddhist circuits

• Improve the delivery of culture—standardsof interpretation, guide training, etc.


• Rationalizing national and state regulationsfor business development—radical reform ofinvestment regulations, domestic andforeign.

• Promote private-public partnerships (PPP).• Upgrade the capacities of existing

institutions in the North East, such as theNorth East Tourism Forum.



• Develop Sundarbans as a unique product andlink this ecotourism with the unique “turtlebreeding” in Orissa’s mangroves andbeaches.

• Develop and promote river-based tourismincluding river cruises in North East, river-running, fishing, etc.

• Link North East ecotourism-cum-Buddhistcircuit of Manas, Kaziranga, and TawangMonastery with Buddhist circuit.

• Document Buddhist pilgrimage, cultural andother heritage—detailed preservation manualfor each and training of local people.

• Revive the concept of a “Buddhist CircuitTrain” covering Lumbini, Sarnath, etc.featuring train travel in India.


D. Ideas from Bangladesh National Workshop—15 February 2004


• Joint destination marketing and promotiona priority—constraints due to poor imageand negative perceptions.

• Eastern Himalaya festivals and eventscalendar.

• Harmonization of data collection.• Promoting convention tourism.


• Standards and certification.• Documenting Buddhist pilgrimage, cultural

and other heritage—detailed preservationmanual for each and training of local people.


• Solve lack of accommodations by village staysand public-private partnerships withinternational private sector.

• Develop the 28 Buddhist sites.


• Enable cross-border tourism with amenitiesand improvements to visa processing.

• Foster regional and budget airlines.• Cross-border facilities—West Bengal and

Tripura.• Development of Banglabandh to Kakarbita

road, along with buildings for immigration,custom, and visitors’ waiting halls andparking for access to major Buddhistpilgrimage destinations, and to facilitatedomestic tourism.


• Enhance tourism training capabilities.• Set up an International School for Asia and

the Pacific region in Dhaka throughupgrading the existing National Hotel andTourism Training Institute (NHTTI), run byBangladesh Parjatan Corporation (BPC).

• Strengthen NTO institutional capacity,including involving private sector.


• Joint marketing, including branding ofEastern Himalaya ecotourism.

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• Comila District—investigate 28 sites withUNESCO.

• Ropeway construction at Rangamati andresort development at Shuvalong to visitBuddhist Monastery.

• Development of Banglabandh to Kakarbitaroad, along with buildings for immigration,custom, visitors’ waiting halls and parking foraccess to major Buddhist pilgrimagedestinations, and to facilitate domestictourism.


• Foster private sector investment in tourism.• Promote private-public partnerships• Strengthen NTO institutional capacity,

include involving private sector.


• Development of Banglabandh to Kakarbitaroad along with buildings for immigration,custom, visitors’ waiting halls and parking.

• Ropeway construction at Rangamati andresort development at Shuvalong.

• Reconstruction of the central temple ofPaharpur and upgrade the access road, etc.

• Upgrade Gangra via Bandarban toRumabazar Road with a bridge on KarnaphuliRiver at Chittagong Hill Districts.

• Construction of a marina at Cox’s Bazaar seabeach.

• Promotional programs that willestablish East Himalaya as ecotourismdestination, andproduce collateral to support thispositioning, i.e. brochure, CD, website, etc.

• Develop the Sundarbans as a world-classecotourism destination.

• Marine park and ecotourism development atSt. Martin Island.

• Ropeway construction at Rangamati andresort development at Shuvalong to visitBuddhist Monastery.

• Bagerhat World Heritage Site upgrading andproduct development.

• Upgrade Gangra via Bandarban toRumabazar Road with a bridge on KarnaphuliRiver at Chittagong Hill Districts—for bothforeign and international markets.

• Construction of a marina and pier at Cox’sBazaar sea beach for domestic visitors.

• Revive the paddle steamer service Kolkata viaDhaka up river to Guwahati.



• Masterplan for Buddhist tourism sites,particularly restoration of Paharpur,Mahastangar, and Mainamati, etc., includingupgrading of access roads,etc.


E. Ideas from New Delhi, India National Workshop—20 February 2004


• Branding and joint promotions.• Use current South Asia spirit of co-operation.• Market beyond South Asia, including

Myanmar, Tibet Autonomous Region (TAR),People’s Republic of China (PRC) , Sri Lanka,etc.

• Address seasonality problems throughpromotion of new products and specialinterest tours, including youth tourism.

• Joint promotion of Eastern Himalaya festivalsand events, including river festivals, religiouscelebrations, etc. Calendar, especially keyfestivals, Teesta River festival.

• Harmonization of data collection bymeasuring intra-regional arrivals in a moreconventional way to reflect true picture.

• Promote handicrafts and weaving.• Establish rail travel as a feature of travel in

India, especially the Darjeeling train.• Tourism awareness program, including

information flows from North East, andovercoming perceptions.

• Flood source market with images ofecotourism and Buddhism.

• Coordinate marketing to avoid duplication.

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• Train tourism in general—especially theDarjeeling train, and the rail links to Lumbini(Gorakpur to Sunauli), and from Siliguri toNepal (Karkarbita) and Bhutan (Hashimarato Jaigoan), Bangladesh (Banglabandh).

• Tea tourism—staying in homes and feature• JBIC as partner, documenting Buddhist

pilgrimage, cultural and other heritage—detailed preservation manual for each andtraining of local people.

• Linking ADB infrastructure initiatives in theNorth East with tourism “software” to enablelocal communities to engage in tourism.

• Joint approach to destination problemsolving, i.e. image, vehicle hawkers,minimizing hassles etc.

• Tourism awareness to promote appreciationof regional tourists and importance oftourism in general.

• Ensure the promotion of styles of tourismthat enable local people to be involved inecotourism.


• Develop additional SASEC hub at Bagdogra.• Strengthen infrastructure and connec-

tivity—air, rail, roads and security—in UttarPradesh and Bihar for Footsteps.

• Foster regional airlines.• Facilitate restricted area/inner line permits

to North East to make them easier and fasterto procure.

• Develop roads, wayside facilities and signageon Buddhist circuits, and other road access.

• Seamless travel in the region—South AsiaTraveler idea.


• Use HRD facilities in India to link all the otherregional training centers.

• Use competitive advantage in Englishlanguage.

• More trained guides with multi-languageskills; improved interpretation with greaterdepth of knowledge.

• Train service providers at grass roots level—Himalayan Host.


• Joint marketing, including branding ofEastern Himalaya ecotourism.

• Use Sikkim as a leading center of ecotourism.• Emphasis on developing the North East.• Promote youth travel to student and school

exchanges.• Promotional programs that will

establish Eastern Himalaya as ecotourismdestination, andproduce collateral to support thispositioning, i.e. brochure, CD, website,etc.


• Training trainers to improve quality ofecotourism services, especially at a grass rootlevel.

• Develop and promote river-based tourism,including river cruises in the North East,river-running, fishing, etc.




• Promotional programs that differentiatebetween Buddhist market segments.

• Trans-Himalayan circuits.• Joint training and networking of tourism

personnel and historic resource managers.• Training trainers to improve quality of

tourism services on the Buddhist circuits.• Improve the delivery of culture—standards

of interpretation, guide training, etc.


• Rationalize national and state regulations forbusiness development—radical reform ofinvestment regulations, domestic andforeign.

• Promote private-public partnerships (PPP).• Upgrade the capacity of existing institutions

in the North East, such as the North EastTourism Forum.



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• Develop and promote river-based tourism,including river cruises in the North East, riversports, fishing, etc.

• Link North East ecotourism-cum-Buddhistcircuit of Manas, Kaziranga, and TawangMonastery with Buddhist circuit.

• Document Buddhist pilgrimage, cultural andother heritage—detailed preservationmanual for each and training of local people.


F. Ideas from the Gangtok, Sikkim, India Planning Workshop—29 April 2004


a. Joint Marketing to Brand and PromoteEcotourism and Buddhist Circuits

• Target high-value niche markets, i.e. birdwatching, flora, fauna, etc.

• Quality domestic segments—benefited fromclosure of Kashmir; now getting high-valuevisitors from New Delhi, Maharashtra, andGujarat.

• Sikkim market positioning not clear in targetmarkets; not well addressed in the Plans thatguide Sikkim tourism (i.e. Sikkim TourismMasterplan Tata 1997, SustainableDevelopment Masterplan 2002 and AdventureTourism Masterplan INTACH 2003).

• “Sacred landscape” of Sikkim, a specific areabeyul.

• Position the region as “Buddhist heartland”.

b . Regional Marketing with South AsianTourism and Travel Exchange (SATTE)

• Supportive of SATTE as an appropriatevenue.

• Strong appreciation and support in Sikkimfor domestic tourism.

c. Harmonizing Arrival Statistics

• In Sikkim all are counted (via hotels) andestimated at 300,000 total in 2003, of whomabout 20,000 are international and over 5,000are trekkers.

d . Events Calendar

• Good idea.• Learn lessons from Teesta Tea Tourism

Festival.


Product Standards and Industry Codes ofConduct in Ecotourism and Buddhist Circuits

• Much work done in Sikkim with codes ofconduct (i.e. TAAS], KhangchendzongaConservation Committee [KCC] Sikkim,KEEP, DEP); the process of developingguidelines can be more important than theresult.

• Must be self regulated.• Policies in place but often not enforced.• Must be a South Asia regional code of

conduct, not imported from the outside;develop long-term criteria for regionalcertification.

• Build on the ecoregion and biological corri-dor concepts of major donors and interna-tional non-government organizations(NGOs), such as the World Wildlife Fund(WWF), MacArthur Foundation, The Moun-tain Institute (TMI) and ICIMOD.


• Eastern Himalayan Caravan—keen to seeGangtok and Nathu La involved.

a. Bagdogra Gateway and Hub

• Strong support and enthusiasm from allstakeholders—anger that this is not moving;perceived as essential for Sikkim access.

• New airport for Sikkim at Pakyong isapproved for ATRs, land acquired and fundsallocated by Government of India; operableonly in 2 to 3 years.

• Strong momentum to push forward withBagdogra as key stakeholders are all poisedto move; a planning study could facilitatethis with stakeholder workshops, assessmentof the demand, and encouragement to re-gional carriers, especially Druk Air, to initiateservices.

b . “South Asian Traveler” Facilitation System

• Constraints to tourism with visa and permitand trek permit systems that need to be

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(Nepal), Kanglakhang (5,560 m), Pangding,Dzongri (Gochela side trip), (Yuksam car viaRavangla to Gangtok trek to Nathu La toChumbi Valley Tibet to Phari to Ha) or trekto Thangsing, Labdang, Tashiding, Ralang,Meanam, Dzongu, Mangan, Phodong,Gangtok, etc.

b . Integrated Project on Tourism in Ganga-Brahmaputra

• Sikkim hosted South Asia EcotourismConference 2002.

• Strong concern for environmentalconservation, and that local people shouldbenefit and be involved in tourism.

• Tsomgo Lake (on road to Nathu La) is apopular road destination with yak rides andsnow.

c. Integrated Project on Adventure Tourism inSouth Asia

• Starting an adventure school in Namchi,which could be a regional model.

• Mountaineering banned in Sikkim for sacredlandscape reasons.

d . South Asia Sustainable Tourism Forum

• Good support for the concept of theSustainable Tourism Forum.

• Gulf between NGOs and travel industry; alsopoor relations with Himalayan Mountaineer-ing Institute training program.


a. Living Buddhism in the Himalaya

• Rumtek Monastery as a key product, withmany centers worldwide. Significantattraction both for sightseeing (200,000 plusIndians annually).

• Namgyal Institute of Tibetology is model inthe region—could be used for trainingguides. Attracts long stay (maximum 60 days)US students from Naropa University.

• Guru Padmasambhava tallest statue (135ft)at Sandupchi in Namchi is a new pilgrimagedestination for Tibetan Buddhists.

• Sikkim has many pilgrimage sites that attractTibetan Buddhist pilgrims: Tashiding andPemayangtse Monasteries, four caves andKhecheopalri Lake etc.

rationalized; currently no multiple entry,minimum group size requirement, trekpermits only available in Gangtok andrequired every 15 days up to 60 days.

• Bangladeshi and Pakistani nationals notpermitted to Sikkim.

c. Asian Highway Improvements

• Nathu La planned to become a four-lanehighway; environmental concerns due tofragility of area.

• Wayside amenities on Nathu La to Gangtokroad, including high altitude education forvisitors, and visitor facilities at Tsomgo Lakeinvolving local communities.


• Asia-Pacific Education and TrainingInstitutes in tourism (APETIT) activities:capacity building should use local tribalinstitutions to ensure benefits reach localpeople.

• South Asian Host supported.


a. Integrated Project on Trekking in the Himalaya

• Strong concern for environmentalconservation, and that local people shouldbenefit and be involved in tourism.

• All treks are controlled and must beaccompanied by trek guide, and routes arespecified and government approved.

• Tourism Huts on trek routes are not wellmaintained or well designed;local people getno benefits from Huts.

• Himalayan Homestay training that has beenpioneered in Sikkim (and Ladakh) should beincluded to involve and benefit locals.

• Nathu La plans call for a four-lane highwaythat will open up tourism and trekkingopportunities, but negative impacts must bemitigated. Masterplan under preparation.

• Need to raise self-esteem, dignity andlivelihoods of mountain people.

• Exciting potential for a three-country “NehruTrek” route: Gangtok to Nathu La to ChumbiValley, Tibet to Phari to Haa, Bhutan.

• Good support for Great Himalayan Trailconcept and route: Tserang to Yalung

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b. Buddhist Art and Archaeology in South Asia

• National Institute of Tibetology could play a“stellar role,” and as a center of excellenceand for training guides, etc.


a. Tourism Investment Fund

• No problem of access to capital at all levelsfor individuals—from North EastDevelopment Finance Corporation [NEDFI](as low as Rs 1.5 million lakhs) and TourismFinance Corporation of India [TFCI] (ceilingof Rs 30 million). The North East Council[NEC] has funding mechanisms for localgovernment.

• Land in Sikkim and other parts of the NorthEast can be owned only by locals, so it cannotbe used as collateral. Lease arrangements areused to get around this restriction.

b . Public Private Partnerships

• Strong support for the principle of public-private partnerships.

• Call to involve state governments for effectiveimplementation of the TDP.


a. Key Area: Kanchenjunga to Sikkim andDarjeeling

• Mountaineering banned in Sikkim for sacredlandscape reasons. There are excellent cross-border trek possibilities.

• Great Himalayan Trail concept and route;Tserang to Yalung (Nepal), Kanglakhang5,560m, Pangding, Dzongri (Gochela sidetrip), (Yuksam car via Ravangla to Gangtoktrek to Nathu La to Chumbi Valley Tibet toPhari to Ha) or trek to Thangsing, Labdang,Tashiding, Ralang, Meanam, Dzongu,Mangan, Phodong, Gangtok.

• West Sikkim Ecotourism Plan includingproduct development and marketing.

b . Key Area: North East Sikkim (Nathu La) toBhutan

• East Sikkim not North East Sikkim. IncludeChumbi Valley in TAR, PRC. Great potentialfor domestic and international tourism toTAR, PRC. Open year round.

• Three-country “Nehru Trek” route Gangtok toNathu La to Chumbi Valley, TAR, PRC toPhari to Haa, Bhutan.

• Project needed to sensitize local people tobenefits from tourism and mitigate negativeimpacts with the opening of Nathu La.

• Environmental concerns should beparamount in fragile mountain regions.

c. Key Area: India’s North East States

• Need for information about visas andpermits to reach markets.

G. Ideas From SATTE, New Delhi—25 to 27 March 2004

1. SATTE’s Track Record

• SATTE 2004 (New Delhi) attracted 721 buyers(including 260 international buyers from 31different countries) and 224 sellers, taking290 booths in over 6,500 square meters (m2)of exhibition space.

• SATTE is 11 years old, and has steadfastlypursued the South Asian identity. Its mainfocus has been the travel trade, historicallytargeting sellers from Pakistan, Maldives, SriLanka, Bhutan, Bangladesh, Nepal and India.

• The event has developed its own critical massthrough market demand. It has not had torely on intervention or promotionalassistance.

2. SATTE’s Successes in South Asia

• In Delhi in 1996, the Tourism Ministers ofNepal and Sri Lanka joined in SATTE’sinaugural ceremonies.

• SATTE was held in Colombo in 1997 on theinvitation of the Sri Lankan Government.

• In Delhi in 2001, the first ever South AsianTourism Ministerial Summit was held underthe umbrella of the WTO. WTO’srepresentative for the region has attendedSATTE at least 5 times during the 11 years.

• WTO’s Secretary General released theprogram of SATTE at the World Travel Martin London for the last three consecutiveyears.

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• In its 11 years, SATTE has hosted more than3,000 international buyers from over 40countries. This year at SATTE, the regionalidentity came through very strongly withregional buyers from Nepal (1), Thailand(17), Malaysia (20), Hong Kong, China (7),Singapore (5), PRC (23), Indonesia (5),Middle East (33) and Pakistan (8).

• SATTE is developing as a generic travel showwith the following sub-segments: IndiaInbound, India Domestic, India Regional(South Asia), and India Outbound—International. Each of these segments hasmomentum and a defined buyer and sellerprofile.

3. Background of SATTE

• SATTE is privately driven with broad industrysupport and government patronage,direction and blessings.

• SATTE is commercially focused and does notseek any grants or financial support per se.Almost 100% of its funding comes fromrental fees from exhibitors.

• SATTE is an enterprise driven by India’sleading publishing house in travel andtourism, Cross Section Publications,publishers of Destination India, Travel Trends Today, GoNow, and India Travel Planner.

• Cross Section Publications has its head officein Delhi. It has branches in Mumbai andColombo, and an associate office inKathmandu.

4. What SATTE has not Achieved To Date

• SATTE has not been able to step far beyondthe Indian market to develop and marketeither intra-regional tourism or an intra-regional identity.

• SATTE does not itself have the financialmuscle to develop collateral and market theregion.

5. SATTE Vision into the Future

• The tourism product of South Asia is verydiffused and scattered. Selling South Asia asone single product or through one singleevent is very difficult.

• Because of access, infrastructure availabilityand geographical/air connectivity, Delhiremains the best location for a “mothershow.”

• Delhi has three-hour flights to Colombo,90-minute flights to Kathmandu, and 60-minute flights to Lahore. Three to fourcarriers operate on most routes.Interconnectivity in the next few months isexpected to increase substantially.

• Given the above reasons, a mother show forSouth Asia to be held in Delhi is recom-mended.

• A variety of post tours for different productsand different markets would be offered tobuyers and tour operators from within SouthAsia and from overseas.

• Also recommended as part of an annualcalendar of events are satellite events thatshowcase specific products or specificregions. Such events need to be announcedsufficiently in advance and can be held asstand alone events. Examples include a“Destination Bhutan” event or “DestinationMaldives” event, or a workshop on Buddhain Lumbini or in Bodh Gaya.

6. Collateral Requirements

• SATTE recommends the followingpromotional activities and collateral:

website on South Asia,posters on different themes and productlines of South Asia, including Himalaya,beaches, Buddha, golf, and eco-tourism,introductory brochure on South Asia,Calendar of Events, andCD ROM on 101 itineraries basedregionally and arranged thematically(SATTE has developed the first interactiveCD ROM on South Asia). This was totallyfunded by WTO.

• Other steps to project South Asia, such as aSouth Asian booth at WTM and ITB, a SouthAsian road show in Europe and another inthe Far-East.

7. Forthcoming Projects

• Tabloid on South Asia.• 12th SATTE to be held in New Delhi from 19

to 22 April 2005.

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H. Ideas from Siliguri-Bagdogra, India Planning Workshop—30 April 2004

• Security situation in North Bengal couldthreaten integrity.

b . “South Asian Traveler” Facilitation System

• Keep everyone informed about the reality ofsecurity situation.

• Regional information centers to facilitatetravel.

• Vehicles crossing borders are severeconstrained due to permit requirements,untrained officials and necessity for payingtaxes.

c. Asian Highway Improvements

• Community managed wayside amenitiesconcept (Michi-no-Eki) welcomed on touristsectors of Asian Highway.

• Amenities needed on Bagdogra toPhuentsholing to Thimphu stretch of AsianHighway.

• Road improvements and highway amenitiesneeded from Taplejung to Charali toBhadrapur to Kakarbita, Nepal.

• Wayside amenities and border facilities onAsian Highway section Kakarbita to Bagdogravia Changrabandh and Banglabandh toPaharpur to Dhaka.

• Wayside amenities with communityinvolvement on the current tourism routesof North Eastern states.


a. APETIT Activities in South Asia

• Strong endorsement for network ofexchanges between centers of excellence inthe region.

• Training of local guides in ecotourism and inBuddhist circuits needed to improveknowledge and to provide local benefits.

b . South Asian Host

• Good idea as hospitality services in WestBengal perceived as weak.

c. Training for Travel Writers

• The idea was supported as being useful.


a. Joint Marketing to Brand and PromoteEcotourism and Buddhist Circuits

• Drastically under-utilized power of thebranding of tea, i.e. Darjeeling and Assam.

• Security situation is a major concern to beovercome by realistic information andmarketing.

• Retain individual cultural traditions in eacharea.

• Separate and recognize different Buddhistmarket segments.

• Need to reinforce local traditions,handicrafts, separate identity, etc.

• “Buddhist Heartland” promotionalpositioning.

b . Regional Marketing with SATTE

• Strong appreciation and support in WestBengal for domestic tourism.

c. Harmonizing Arrival Statistics

• Endorsed as good idea with enthusiasm tosee statistics regularized.

d . Events Calendar

• Endorsed as good idea.• East Himalayan Festival held in India

annually Janurary-February to involve localvillage events.

• Include Darjeeling Carnival—a “created”event.


Product Standards and Industry Codes ofConduct in Ecotourism and Buddhist Circuits

• Lack of policies for ecotourism activities ishindering implementation.

• Need for benchmarking and regionalguidelines seen as a priority.


a. Bagdogra Gateway and Hub

• Strongly support Bagdogra as aninternational airport.

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d. Project Management Training for NTOs andLTOs

• Greatly needed, also needed for the travelindustry and tour operators.


• For Integrated Project on Trekking in theHimalaya, need for high standards of waterand waste management practices.

• Strong endorsement for Sustainable TourismForum as a venue to link NGOs and resourcemanagers with private sector travel industryand consumers.

Integrated Project on Tourism in Ganga-Brahmaputra

• Hydro tourism—make power generatingprojects and river recreation features.

• Tea tourism, linked with other products.• Dooars as a destination.• Heritage circuits linking World Heritage Sites.• Wildlife is a major competitive product in the

region—many world class circuits in theregion.

• Using elephants for tourism proposed in theDooars.

• Need to reinforce local traditions,handicrafts, etc.


a. Footsteps of the Lord Buddha

• Proven international appeal of Theravadaand every sect.

• Promote SASEC countries as “BuddhistHeartland”.

b . Living Buddhism in the Himalaya

• Strong need for training of guides forimproved interpretation.

• Recognize different market segments anddifference between Mahayana (TibetanBuddhism).

c. Buddhist Art and Archaeology in South Asia

• Strong need for training of guides forimproved interpretation.


a. Tourism Investment Fund

• No problem of access to capital at all levels.

b . Public Private Partnerships

• A good model of public-private partnershipis the tea auction center at Guwahati andSiliguri.

• Call to involve State governments foreffective implementation of the Plan.


a. Key Area: Kanchenjunga to Sikkim andDarjeeling

• Idea for a new cable car / ropeway from NorthDarjeeling to South Sikkim, similar to SinglaValley in South Darjeeling.

• Kanchenjunga Regional Ecotourism Parklinking Nepal, Sikkim and Tibet.

b . Key Area: East Sikkim (Nathu La) to Bhutan

• Jelep La as strong all weather and shorterapproach to Tibet—potential new trekkingroute.

c. Key Area: Bagdogra to Paharpur toBanglabandh

• Change name to Bagdogra to Paharpur viaChangrabandh / Banglabandh.

d . Key Area: India’s North East States

• Stilwell Road linkages to Northern Myanmarand Southern China.

• Lack of ecotourism policy.• Tea tourism.

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APPENDIX 2: APPENDIX 2: APPENDIX 2: APPENDIX 2: APPENDIX 2: THETHETHETHETHE SASEC T SASEC T SASEC T SASEC T SASEC TOURISM INVESTMENT FUNDOURISM INVESTMENT FUNDOURISM INVESTMENT FUNDOURISM INVESTMENT FUNDOURISM INVESTMENT FUND

A. Introduction

The South Asia Subregional Economic Cooperation(SASEC) Tourism Working Group has called for theestablishment of a tourism investment fund or facility tofinance smaller but viable tourism projects in thesubregion. What follows are considerations and possibleoptions related to this proposal.

B. The Problems Addressed

The appropriate financing option must address theproblems. In the context of SASEC countries and thedesire to promote subregional cooperation, thereappears to be three types of problems related to financingtourism projects.

1. Systemic problem of small-scale financing.Investors with collateral assets generally haveready access to development finance fortourism projects. However, potential investorswithout such assets may find that financing isa barrier. This is a systemic problem, in that itapplies across all sectors and not just totourism. Small-scale financing involvesproportionally large transaction and duediligence costs, relative to the amount ofborrowed funds. Banks and other financialinstitutions consequently give more attentionand service to large borrowers at the expenseof small and medium-sized enterprises(SMEs). This issue surfaced at the SecondMeeting of the SASEC Tourism Working Group,when participants expressed concern regardingAsian Development Bank (ADB) preference forfinancing large tourism projects due to theirrelative cost-effectiveness.

2. Problem of financing subregional projects, wherethe costs and returns are linked across two ormore countries. A series of investments may beneeded to realize a tourism concept, such as aBuddhist circuit, that straddles the border oftwo countries. Some of these investments maybe public goods, such as roads andtelecommunications. As there is no financing

mechanism for shared sovereign risk, thecomponents are typically segmented on anational basis and financed with governmentbonds and/or loans backed by sovereignguarantees.1 Financing on a national basis,however, reflects costs incurred in providingcomponents of the subregional project. Thedistribution of benefits from subregionalprojects may differ markedly from thedistribution of costs, resulting in delays untilequity considerations are resolved. Privatesector participation in financing publicinfrastructure investments is possible anddesirable, but again on a segmented basis. Asthe tourism industry is highly suited to privateenterprise, most investments needed to realizea tourism concept are expected to beundertaken by the private sector. However,private investors may be concerned aboutexchange risks and other complicationsassociated with investing in a series of projectsspanning two or more countries.

3. Problem of conditionality. As inferred above,many projects require a blend of public andprivate investment. Private investment in atourism opportunity may depend on publicinfrastructure investment, or on changes inregulations and policy (e.g. a cross-bordercrossing facility). In turn, the public investmentor regulatory/policy change may appear to beuneconomic or unimportant until the level ofeconomic activity increases. An interdependentconditionality problem may result in largeopportunity costs (the costs of foregoneeconomic activity while awaiting betterconditions).

1 The ADB-supported Greater Mekong Subregion (GMS) Program of EconomicCooperation has recently included the Mekong Tourism DevelopmentProject, whereby ADB has extended three separate loans for tourismdevelopment to Cambodia, Lao People’s Democratic Republic (PDR) andViet Nam. The three countries agreed to pool a (small) portion of theborrowed funds to finance projects of joint interest. This approach is ofpotential interest to SASEC member countries.

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These problems are being addressed in variousways, as discussed below.

• The Tourism Finance Corporation of India (TFCI).TFCI has funded more than 500 tourism-related projects over the past 14 years. Thefundamental logic of the Corporation is to helpbridge the time it normally takes (5 to 6 years)before financing for a tourism infrastructureproject (e.g. a hotel) becomes independentlyviable. Under the new industrial package forNorth East States recently announced by theGovernment of India, commercial banks andthe North East Development FinanceCorporation (NEDFI) will have dedicatedbranches and counters to process applicationsfor term loans and working capital in IndustrialGrowth Centers and Integrated IndustrialDevelopment Centers.

• The Tourism Development Committee (TDC) inBhutan. TDC was established to identifyinfrastructure bottlenecks and then endeavorto ensure that they are removed. Similarly, theNepal Tourism Board provides a public-privatesector link for identifying problems anddesigning appropriate responses.

• Assistance from the donor community in supportof tourism. Since 1989, ADB has extended fivetechnical assistance grants and two loans toNepal for tourism development, amounting toalmost $2 million and $28 million, respectively.ADB has also created a separate investmentfacility for subregional projects that is not partof national lending allocations. For 2004 and2005, $100 million for lending and $3.3 millionfor technical assistance have been earmarkedfor regional cooperation activities.2 Technicalassistance grants for fostering regionalcooperation in South Asia have averaged $3.5million annually over the past three years.

• Tax holidays. These have been granted inBangladesh to encourage private sectorinvestment in tourism.

While these initiatives are helpful, problemsremain. Even when there is a specialized agency toassist in financing tourism projects, as in India, most

financing is for large-scale projects. Budget tourismis under-financed, resulting in poor accommoda-tions and other facilities for middle-income domes-tic, intra-regional and international tourists. Moregenerally, with the exception of Nepal, tourism isseriously underdeveloped, as shown by the lowlevels of foreign visits to SASEC countries.

Financing problems are, of course, only part ofthe explanation for underdevelopment of the tourismindustry. The larger explanation rests with the poorenvironment for private sector enterprise in SASECcountries. Security concerns explain why tourism hasstalled or declined in Nepal, in northern India, andeven in parts of Bangladesh and Bhutan. But inaddition to security concerns are serious questionsconcerning the appropriate role, in a market-basedeconomy, of government in supporting the tourismindustry. Public ownership of tourism and tourism-related infrastructure (hotels, guesthouses, transportfacilities, airlines, etc.) remains widespread in thesubregion, crowding out the private sector. Further,the regulatory and policy environment is difficult. Toillustrate, an Air India representative at the Calcuttaworkshop cited unnecessarily complicated proceduresin securing licenses to build a hotel or to undertakeother tourism investments in India. Land tenure isanother problem, directly related to access to financialmarkets.3 Such problems hamper SMEs in particular.4

These enterprises are the backbone of the tourismindustry in developing countries.

C. Options for Consideration

In light of the above, and in light of the numerousinvestment opportunities identified under the SASECTourism Development Plan, financing options need to beconsidered. Three options are outlined below.5

2 The Mekong Tourism Development Project referred to in the previousfootnote has been financed drawing from ADB’s subregional financing facility.

3 The majority of potential entrepreneurs (farm households) are not able touse their most valuable asset to mobilize capital:

… most people cannot participate in an expanded market because they do nothave access to a legal property rights system that represents their assets in a mannerthat makes them widely transferable and fungible, that allows them to beencumbered and permits their owners to be held accountable. So long as assets ofthe majority are not properly documented and tracked by a property bureaucracy,they are invisible and sterile in the market economy—the assets of the majority oftheir citizens have remained dead capital stuck in the extralegal sector. Hernando

de Soto. 2000. The Mystery of Capital.

4 The World Development Report: Attacking Poverty (2000/2001) includes illustrationsof actions by developing countries to assist poor people and small firms toengage in businesses. To illustrate, in Bangladesh a subsidiary of GrameenBank, Grameen Telecom, operates a village pay phone program that leasescellular telephones to selected bank members, mostly women in rural areas,who use the service to access market information.

5 These options follow closely those outlined by ADB in a paper prepared in2003 entitled Tourism Facility Fund.

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• SASEC Tourism Investment Fund. This would beprimarily a closed account venture capital fund,pooling the equity of strategic investors fromboth within and outside the subregion.Financial backing for tourism and tourism-related investments in the subregion wouldnormally be in the form of equity participation,limited to a maximum of 30% of the projectcost so as to diversify project risks. Debtinstruments could also be issued by the SASECTourism Investment Fund. While termed theSASEC Tourism Investment Fund, it could beexpanded to become the South Asia TourismInvestment Fund, as SAARC gathersmomentum. Shareholders could includemultilateral financial institutions, such asADB.6 National and state governments couldalso be shareholders, if limited to a minorityposition. The Fund would be managed on astrictly commercial basis, hence the need forprivate sector interests to hold the controllingshareholder position. The Fund would focusexclusively on tourism, and could be expectedto provide investment advisory support totourism projects in the subregion.

2. Tourism Development Facility. This would be asubsidiary of a bank or other financial facilityin the subregion, possibly TFCI. The parentinstitution would be supported by a loan fromADB, and the funds would be relent to eligibleborrowers in the subregion. The parentinstitution would have to be authorized tooperate throughout the subregion (TFCI isauthorized to operate only in India).Alternatively, Tourism Development Facilitieswould have to be established in each SASECcountry, overlapping with industrial banks—e.g. the Bhutan Development FinanceCorporation and the Industrial Bank of India,both of which have significant portions of theirportfolios in tourism investments. ADB’s loanto the parent financial institution could beaccompanied by a government guarantee forrepayment.7 However, OCR and ADF resources

would be affected, potentially cutting intoresources for other country-based purposes.8

The proposal raises issues of directed finance,which ADB is increasingly concerned about dueto the generally poor financial status of thebanking sector in the subregion.

3. Tourism Development Loan. This would involvethe government borrowing directly from ADBand re-lending the proceeds to a designatedfinancial institution. In turn, the financialinstitution would provide loans to borrowersfor investments in tourism and tourism-relatedprojects. More favorable terms would beavailable to the borrowers, reflecting ADB’striple AAA rating and its ability to pass on itslower cost of capital to developing membercountries. The government would bear theforeign exchange risk and, ultimately, the riskof non-performing loans. As the ADB loanwould be backed by a sovereign guarantee, itwould affect (lower) ADF and OCR resourcesavailable to the government for otherpurposes. Again, the proposal raises concernsabout directed finance and the implications forthe already weak financial sector. Also, theproposal raises questions about overlap withADB’s support for industrial development banksin the subregion. A possible redeeming featureof a tourism development loan is that it couldbe synchronized to two or more SASECcountries, and pooling of at least a portion ofthe borrowed funds to finance subregionaltourism projects of shared interest.9

Each of these options needs to be consideredagainst the following criteria:

• The need to be realistic and prudent. As seen inIndia and in financial markets generally,banking is becoming more universal rather thansegmented, reflecting the need to pool risk andto capture synergies among financial markets.

• The need to add value. The option or optionsconsidered should contribute value or resultsthat governments acting individually wouldfind difficult to achieve.

6 ADB is the major shareholder (30%) in the Asian Finance andInvestment Corporation Ltd., which performs functions similar to theInternational Finance Corporation (IFC) and the South Asia EnterpriseDevelopment Facility.

7 Swap arrangements could substitute for the government guarantee ofrepayment.

8 Government guarantees affect the debt servicing capacity of the DMCconcerned, which is one of the determinants of the allocation of OCRand ADF resources.

9 As described in previous footnotes.

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• The need to strengthen the role of the privatesector. The option or options consideredshould not have the effect, howeverunintended, of marginalizing the private sector.

Perhaps the last point is most important. As notedearlier, the business environment in SASEC countries hasbeen generally poor. Both domestic and foreign directinvestment have been low, and growth has been relativelyslow. The business environment in India, however,is improving rapidly, especially in some west andcentral states. A major objective of the chosentourism financing option should be to build on thisimprovement, and to encourage market-basedreforms elsewhere in the subregion. Decidedly,governments should not be in the lead when itcomes to development of the tourism sector.

This and other considerations argue in favor ofthe first option discussed above, the SASEC TourismInvestment Fund (TIF).

D. Purpose and Objective of SASECTourism Investment Fund

The Tourism Investment Fund would have thefollowing purposes and objectives:

• To encourage and facilitate private sectorinvestment in tourism opportunities, andprivate sector participation in tourism-relatedpublic infrastructure investments.

• To act as a catalyst/broker/financier for tourismand tourism-related investments in SASECcountries.

• To diversify risk, especially with regard toprojects involving two or more SASECcountries.

• To enhance tourism opportunities in SASECcountries by bringing to bear the management,market, and technology expertise of successfulbusiness interests.

• To promote tourism development consistentwith the pro-poor, cultural, environmental, andother objectives of SASEC countries.

E. Premises Underlying the ProposedTourism Investment Fund

• Financial resource mobilization is a priority foradvancing subregional projects in support ofthe growth of tourism.

• The private sector should be the lead sector,not the public sector.

• High returns are possible from expansion ofthe tourism sector, but in many cases it is notpossible for the private sector to realize thesereturns unless there is strong complementarysupport by the public sector.

• Financial returns at times may be uncertainbecause of project economics or because ofnoncommercial risks.

• Some form of public-private sectorcooperation is frequently needed in order toattract private sector investment in tourism.

• The view from the public sector commonlyholds that tourism should be viable as a privatesector exercise, and hence governmentscommonly under-invest in necessary support.

• A financial institution or facility is needed thatwill help bridge the differing perspectives of thetwo sectors, that has the ability to work withgovernments in establishing appropriatepolicies and regulations.10

• The tourism investment facility should behighly influential, so as to bring about thenecessary conditions for successful and rapidlygrowing tourism in the subregion.

F. Investment Requirements in theTourism Sector

Presented below is a broad list of investmentrequirements in the SASEC tourism sector.

• Accommodation facilities. Hotels, guesthousesand restaurants.

• Small to medium-scale public service facilities.Sanitation and health facilities, water supply,electricity, and telecommunications, amongothers.

• Entertainment facilities. Theme centers,amusement parks, golf courses, recreationalcenters, shops, Internet cafes, and nightclubs.

• Focal sites. Trekking routes and facilities,historical and cultural sites (upgrading andmaintenance), ecotourism sites (designationand protection), and resort sites (beaches andmountain retreats).

1 0 In the case of Nepal, pro-poor development activities have a worldwidereputation (e.g., Annapurna Conservation Area Project), as do privatesector initiatives (e.g., mountain trekking), but there are fewconnections or bridges between the two sets.

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• Tour facilities. Tour buses, vehicles, boats, traincarriages and airlines.

• Access facilities. Tourism designated roads,port facilities, airports, and railways.

• Entry facilities. Customs and immigrationfacilities, cross-border accommodations, andrest and hospitality facilities.

• Awareness facilities. Product and destinationmarketing and tourist information centers.

• Skill development. Tourism training institutes.

• Pro-poor tourism. Agricultural products andhandicrafts.

G. Tourism Investment Fund Components

Three components are proprosed for TIF.

• The SASEC Tourism Investment Fund. A smallumbrella management organization with anetwork of experts to advise on and structurespecific tourism-related investmentopportunities.

• A pre-investment support facility. Withparticipants primarily from the private sector,this facility would help make investmentopportunities bankable. Activities wouldinclude prepartion of investor-grade pre-feasibility and feasibility studies.

• A capacity-building and policy support facility.This facility would help member governmentscreate the necessary conditions for successfultourism investment and a competitive industry.Activities would include strengthening thegeneral capabilities of key government agenciesto undertake and develop suitable agreementswith private sector investors.

H. Rationale for Participation in theTourism Investment Fund

Participation by ADB and other donor agencieswould be in response to opportunities presented bytourism, particularly those for pro-poordevelopment strategies. The TIF would provide theinstitutional means for focused support of SASECcountries (and potentially the whole of SAARC) andof private sector participation in the tourism sector.

Private sector shareholders would viewparticipation favorably as a means of diversifying risk,especially for tourism investment projects involving twoor more countries, and for identifying profitableinvestments for further equity investmentsupplementary to or independent of TIF.

I. Management of the SASEC TourismInvestment Fund

It is important that TIF show early positive results,results that are sustainable and that comprise thefoundation of a sound track record. To initiate thisprocess, it is suggested that TIF commence operations asa non-profit investment facility, advised (but not directed)by a small Board of Governors of eminent persons(preferably one from each of the SASEC countries).As an international non-profit investment facility.TIF would enjoy a tax-free status.11

TIF staff skills should include expertise in bothregional cooperation and in packaging projects forimplementation under public-private partnership (e.g.risk sharing and financial structuring). In the interestsof economy and efficiency, the permanent staff wouldbe small and expertise contracted as needed12

J. The Financial Structure of the TourismInvestiment Fund

Equity subscriptions to the TIF should form thecore fund, while grants should be placed in specialpurpose funds at the request of the donatinginstitution, corporation, or agency. Subscribers areexpected to be individuals, business corporations,private and public institutions, multilateral financialinstitutions, selected commercial banks, donoragencies and governments. The subscriberstructure, shareholding, allocation of votes,representation on the Boards of Governors and

1 1 If desirable, the facility could be formalized as a multilateral financialinstitution and registered with the UN. However, negotiating what in effectwould be a treaty agreement among SASEC member countries would betime consuming, leading to lengthy delay in operations. This in turn wouldcarry a heavy opportunity cost as tourism would be slower to develop, leadingto the loss of significant benefits for the four SASEC member countries.Moreover, formalization as a multilateral financial institution would changethe investment perspective, tending to reinforce the role of the public sector,potentially at the expense of the private sector.

1 2 A possible option for consideration would be contracting outmanagement, or at least the day-to-day operations, of the Fund to anexperienced investment company. This option might be considered inthe early stages of the TIF, but it dilutes the concept of hands-oninvolvement by the equity investors and employment of their expertiseand influence to strengthen the policy, regulatory, and infrastructurefactors critical for the success of proposed tourism investments.

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Directors, and the amount of paid-in capital wouldbe determined according to the TIF Charter.

Shareholders should include prominent tourismstakeholders in each of the SASEC countries. As noted inthe definition of premises, TIF should wield considerableinfluence so as to help bring about the necessaryconditions for a successful and rapidly growing tourismindustry in the subregion.

Capital subscriptions should be divided into “paid-in” and “callable” capital. Paid in capital should becontributed in US dollars in 5 equal annual installments.Callable capital should be called in only after all othersources of cash have been fully employed. It will enableleverage through borrowed funds, with favorable ratesreflecting the creditworthiness of the subscribedmembers.

The initial subscribed capital proposed is $20million, with paid-in capital comprising 50%. Thetarget number of initial shareholders is 50. Anannual subscription of $400,000 for eachshareholder would thus be sufficient to meet thefirst-stage capitalization target of $100 million overfive years. The second stage capitalization targetwould be $200 million by year 10, with an increasein the number of approved shareholders to 100.

The capital base would support marketborrowing of more than 50% of subscribed capital.Co-financing would further leverage the capitalbase, possibly enabling, when fully operational, aninvestment portfolio of some $300 to $400 millionby the end of the first stage of operations. This levelof operations, together with the expected roster ofeminent shareholders and Board of Governors,would result in TIF being a major driving force forbuilding the tourism industry in the SASECcountries.

TIF would facilitate SMEs by taking minorityequity positions in proposed tourism projects. Theimpact in stimulating and facilitating newinvestment in the industry would be greater thanthe size of the portfolio, for the portfolio itself wouldbe regularly reviewed and equity positions sold torealize gains and to release capital for newinvestments.

Further, the proposed pre-investment supportfacility and the capacity-building and policy supportfacility would be especially relevant to helpingSMEs. It is anticipated that the donor communitywill contribute to these two support facilities. Theyshould commence operations on a modest scale($200,000 initially), with a target level of $2 millionwithin 5 years. The two support facilities of TIF,especially the pre-investment support facility,

should be largely self-financing once TIF is fullyoperational. Such financing will be in the form ofrecoverable user fees against successfully promotedand financed tourism investment projects.

A feature of TIF would be its special purpose funds,allowing TIF stakeholders and donor contributors tochannel their support and investments by investmenttype and country.

K. Investment Criteria versusDevelopment Criteria

Fundamental to the viability of TIF will be theoperating principle: investment versus development. Ifdriven by purely financial criteria, the market rate forinvestor returns should be the target. If driven byeconomic criteria, a grant element (from governmentsand donor agencies) would likely be necessary to coverthe public goods dimension of infrastructureinvestment, environmental considerations, or otherfactors that cannot normally be subject to fullcommercial recovery.

In step with the desire to be more marketbased, a reasonable rate of return should guide allinvestment decisions. However, the rate of returncould be somewhat lower than the rate normallydemanded by investors in emerging markets.Further, the returns should be plowed back into theFund. Hence the “yield” would be realized as ashareholder in the Fund.13

This issue is fundamental, as it determineswhether grants or investment funds are sought forTIF. There may be a possibility of compartmentalizingthe facility, with both grant and investmentcomponents. Shareholder investors may be willingto accept something less than the normallyacceptable rate of return, perhaps on the basis thattheir investment would help identify and set thestage for their own tourism investments.

The financial versus economic perspectivecould be narrowed by effective private-public sectorpartnership. TIF in partnership with SASECgovernments could reduce the risk of tourisminvestments failing to meet expectations, especiallyif TIF is successful in encouraging governments tofocus on desired policy and regulatory adjustmentsand complementary infrastructure investments.

1 3 In the same manner as investors are rewarded when holding shares inlarge multinational firms, such as CISCO, which fully retain earningsfor acquisitions and further growth, rather than paying dividends.

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L. Business Operations of the TourismInvestment Fund

Three forms of investment could be addressed byTIF, each demanding very different skills: (i) venturecapital and business start-ups, (ii) corporate restructuringof SMEs, and (iii) financing infrastructure projects.

In the case of the first two types of investment, TIFwould be dealing with owners, usually privateentrepreneurs. Venture capital investments could includeequity positions in publicly owned tourism facilities inthe process of being privatized. In the case of projectfinancing of infrastructure projects, TIF would be dealingprimarily with governments, but also with privateinvestors where sustainable revenue streams can becounted on.

All four SASEC countries are in transition to moremarket-based economic systems. The degree ofintervention by governments in the tourism industryconsequently is diminishing. Nevertheless,governments continue to endeavor to meet objectivesrelated to cultural integrity, environmentalpreservation, and pro-poor benefits.

In step with the desire to be more marketbased, it is recommended that all venture capitalinvestments and all corporate restructuringinvestments of SMEs be directed strictly to theprivate sector. Further, project financing of tourism-related infrastructure projects should be consideredonly if the private sector has a significantshareholder interest. TIF investment activitiesshould include but not be restricted to priorityopportunities identified in the SASEC TourismDevelopment Plan. While promotion of subregionalcooperation in tourism is fundamental to theestablishment of TIF, the sustainability of TIF dictatesthat investment be directed to where returns(discounted for risk) are highest, includingsubregional projects, national projects withsignificant subregional implications, and purelynational projects.

From the private sector perspective, TIF shouldbe guided by principles that emphasize the need to

• align the business strategies of the investors,.• assess the potential risks of proposed projects,

and• evaluate the potential financial returns of

participation.

From the perspective of partnership with thepublic sector, TIF should seek

• an effective regulatory framework, wherepolicies and rules are transparent, commercialarrangements among participants have validity,and the binding nature of commercial contractsis enforceable,

• highly practical and operational measuresdesigned to improve access and entry totourism areas (e.g. visa arrangements, air accessarrangements with foreign or private sectorcarriers, and cross-border points), and

• early participation in the pre-feasibility andfeasibility studies for infrastructure projects, soas to establish the basis for possible equityinvestment.

The purpose of TIF should complement, notcompete, with existing multilateral financial institutionssuch as the World Bank, the International FinanceCorporation, and ADB.

M. Core Functions of the TourismInvestment Fund

The primary functions of TIF are specified below.

1. Identification of Suitable Investments:

Undertake the transaction costs necessary toidentify and assess suitable investmentopportunities.Consider investments in private sectortraining facilities, tourism enterprises,accommodation facilities, tourism sites, andtourism-related infrastructure.Apply market principles and the principlesof commercial sustainability in theidentification of investments.

2. Project Formulation:

Formulate (or evaluate) project proposals ina manner that meets the technicalrequirements of potential investors andlending institutions.Draw on appropriate specialists for projectformulation and assessment.

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Infrastructure projects will normally bestructured on a partnership basis with thegovernments concerned. TIF will act as acatalyst for structuring mutually beneficialinvestment projects focusing on (i) theidentification and preparation of bankableprojects—i.e. projects that are technicallysound, politically stable, and have anadequate and stable revenue stream, and (ii)an appropriate framework for the allocationand management of risks, especiallynoncommercial risks, between theparticipating governments and privateinvestors. The TIF will help create theappropriate investment climate and policy/regulatory environment for greater privatesector participation in tourism-relatedinfrastructure projects.

3. Marketing Projects to Potential Investors:

Tourism investment opportunities should bebrought to the attention of potentialinvestors, and marketed on the basis ofsound business plans.Project definition, assessment, andpackaging in appropriate financing formatswill be undertaken with the participation ofpotential investors and lending institutions,so as to facilitate due diligence review anddecision-making.

4. Completing the Financing:

Mobilize private sector funds, on morefavorable terms (interest rate and period ofrepayment) than normally available to theprivate sector in SASEC countries.Promote co-financing of tourism-relatedinvestment projects. Expected co-financingpartners include the multilateral financialinstitutions (e.g. the World Bank Group andADB), international and national banks,investment trust funds, export creditagencies, development agencies, and specialpurpose agencies (e.g. the GlobalEnvironment Facility).TIF will normally take at least a small equityposition in investments identified.Employ structured financing techniques todiversify and minimize risk.

N. Sources of Funds

Initiating TIF will require leadership. ADBsupport in this regard would be helpful, especially ifADB is willing to be one of the start-upshareholders. However, the critical determinant ofsuccess will be the ability to attract well-recognizedprivate sector entrepreneurs as shareholders. If theshareholders and Board of Governors includeinfluential individuals from each of the SASECcountries, TIF will become much more than just afinancing entity. It will be a catalyst and broker forchange, forging stronger synergy between public andprivate sector interests.

Potential sources of funds include thefollowing:

1. Equity positions by primary private sectorstakeholders.

2. Financial institutions and development banksin the subregion.

3. SASEC governments (national and state) asminority shareholders.

4. ADB, with the following considerations andoptions:

ADB involvement would add credibility to TIF,reducing perceptions of risk;an equity position (modeled after itsposition in the Asian Finance and InvestmentCorporation Ltd.);ADB’s co-financing and guarantee ofoperations;loans to the participating governments tocover their equity positions; andloan to TIF or sponsor financial institution(e.g. a development bank).

Funding considerations will also be affected bythe response to the SAARC proposal for a SouthAsia Development Bank.14 If an SADB is established,it will have to be decided whether TIF will bestructured to complement SADB, or to be entirelyindependent of SADB.

1 4 The South Asian Development Fund (SADF), initiated at the SixthSAARC Summit, has the objectives of financing industrialdevelopment, poverty alleviation, protection of the environment,economic projects in the region, and balance of payments support.So far, SADF has lacked the funds to turn feasibility studies intoaction. Following the Islamabad Declaration of January 2004, it isexpected that consideration will be given at the next Board meetingof SADF to transform it into a South Asia Development Bank.

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O. Making it Happen

Further defining TIF, mobilizing interestedshareholders, and gaining agreement on its mission,portfolio objectives, management structure, andcharter will be a difficult task. Financial support willbe needed to initiate the concept and to help get itstarted. Support by ADB and/or other organizationswould be most helpful. Approximately $500,000 isneeded to engage a team of venture capital experts,drawn from the subregion, to fully develop theconcept and to draw together the foundingshareholders. Additionally, expression of interest ina substantial (20 to 30%) equity position in TIF byADB or another highly reputable financial institutionwould greatly enhance the status and likelihood ofsuccess of the proposal.

P. Concluding Observations

Tourism in SASEC countries is far belowpotential. Major benefits in jobs, income, revenues,and foreign exchange could accrue to the subregionthrough both individual and collective efforts tocreate more positive conditions for investment intourism. Most importantly, this means reformingthe policy, regulatory, and institutional frameworksrelevant to such investment.

Financing is only part of the picture.Establishing a new financing mechanism for tourismprojects will have little effect on the industry as awhole unless the financing facility also has the

capacity to influence governments—national, state,and local—to act as constructive partners.

The proposed SASEC Tourism Investment Fundis of a scale and level of composition that, if realized,has the potential to significantly accelerate tourismdevelopment in the subregion. Governments and pri-vate sector resources would work in a harmonized andleveraged fashion, strengthened by co-financing withforeign investors and development agencies.

Financial resource mobilization andharmonized action between the public and privatesectors is currently of collective interest to SASECmember countries. That interest, however, will onlybe sustained if subregional cooperation yieldspractical results. Extensive consultation is neededwith potential stakeholders to develop the Fundconcept and it’s working details in a mutuallyagreeable fashion. Such consultation couldconclude that the need is less than anticipated, orthat competition outweighs the spirit of regionalcooperation. On the other hand, such consultationcould well conclude that the time for action is now,building on the growing support for regionalcooperation in South Asia.

The most significant risk is that vested interestscomfortable with the status quo could endeavor toderail the compelling logic for reform and growth.Such interests may even attempt to co-opt the TIFfor their own gains. Careful identification of thefounding shareholders and Board of Governors willbe vital.

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APPENDIX 3: ECONOMIC AND FINANCIAL ANALAPPENDIX 3: ECONOMIC AND FINANCIAL ANALAPPENDIX 3: ECONOMIC AND FINANCIAL ANALAPPENDIX 3: ECONOMIC AND FINANCIAL ANALAPPENDIX 3: ECONOMIC AND FINANCIAL ANALYSIS OFYSIS OFYSIS OFYSIS OFYSIS OFTHE TTHE TTHE TTHE TTHE TOURISM DEVELOPMENT PLANOURISM DEVELOPMENT PLANOURISM DEVELOPMENT PLANOURISM DEVELOPMENT PLANOURISM DEVELOPMENT PLAN

A. Summary

Economic and financial analysis of the South AsiaSubregional Economic Cooperation (SASEC) TourismDevelopment Plan (TDP) has been undertaken to evaluatethe expected rates of return. The assumptions used andthe results of computations are detailed below.

The economic internal rate of return (EIRR) for thePlan’s Tourism Development Framework as a whole isestimated to be 35%, which is far greater than the socialopportunity cost of capital (12% in real terms).1 The highEIRR indicates that the economic viability of the Plan issound. Benefits of the TDP include the creation ofapproximately 135,000 jobs by 2014 in some of thepoorest areas of the subregion. Sensitivity analysisindicates that the EIRR estimate is heavily influenced bythe assumed incremental increase in tourism arrivals andby possible delays in implementation of the TDP.

The financial internal rate of return (FIRR) for thePlan as a whole is estimated to be 16%, which is wellabove the weighted average real cost of capital (5%). Thisindicates that the TDP is sustainable. Among otherbenefits, the TDP will generate increased revenues togovernments in the subregion by way of taxes, visa andtrekking fees, landing and passenger fees, and other formsof taxation. Sensitivity analysis indicates that the FIRRestimate is most sensitive to shortfalls in expectedtourism arrivals.

B. Assumptions of Economic andFinancial Analysis

1. Investment Costs

Investment costs associated with the SASECTourism Development Plan are very preliminary. It wasnot possible during the field visits to do more thanidentify the opportunities for product developmentand tourism facilitation, and to identify the maininvestments (e.g. road and airport improvements,cross-border facilities, roadside amenities, sitepreparations, water supply systems, etc.).

Accordingly, the investment figures used in theanalysis are simply indicative.

Total investment associated with the Plan is$175 million, of which $25 million is needed forPrograms 1 to 7, $50 million is needed for the 11national area-based programs, and $100 million inprivate sector investment is needed to accommodatethe projected incremental increases in tourismarrivals. Of the total investment cost of $175 million,$75 million is to be borne by the public sector and$100 million by the private sector. Consistent withADB’s Guidelines for the Economic Analysis of Projects, duties andtaxes are excluded from investment.2 Equipment isassumed to have a 10-year life, leading toreplacement investment. The annual operating andmaintenance cost of project investments is assumedto be 1.5%. The economic investment costs arebased on a standard conversion factor of 90%. Pricecontingencies are excluded from the analysis andall costs are in constant 2004 prices.

2. Benefits

The economic benefits of the TDP have beenquantified in terms of the projected incremental revenuesaccruing to the governments and private enterprises as aresult of its implementation. These revenues include visafees and other taxes on tourism spending, which areestimated to be 15% of incremental tourismexpenditures. It is assumed that the majority of visitorsto the subregion will be experienced tourists, andprobably return visitors. The proportion of visitorsdiverted from existing destinations is assumed to be 2%.

The economic evaluation is based on projectedtourist arrivals to the subregion, where thesubregion is defined as Bhutan, Bangladesh, Nepaland the 13 North and North East States of India:Arunchal Pradesh, Assam, Bihar, Manipur,Meghalaya, Mizoram, Nagaland, Orissa, Sikkim,Tripura, Uttar Pradesh, Jharkhand, and West Bengal.Tourism records for these states indicate that about40% of tourists to India visit these states. However,as there is some double counting, it was assumed that35% of the total number of tourists to India visit the13 North and North East States.

1 This is the rate used generally by ADB in evaluating the economicviability of projects. The social opportunity cost of capital may be aslow as 10% if, as in the case of the TDP, there are substantialunquantifiable economic benefits associated with the project.

4 Projected private sector investment is on a gross basis.

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The average annual growth rate in the numberof tourists to the SASEC countries between 1995and 2003 was 3.2%.3 However, since 2003 there hasbeen a pickup in the rate of growth in tourism andhence a 5% growth rate is assumed for the base year.Thereafter there are two projections: the base casewhich reflects projected tourism arrivals in theabsence of a SASEC Tourism Development Plan; andthe “with TDP” case, which reflects the incrementalgrowth in tourism arrivals as a result of subregionalinitiatives.

In the base case, tourism arrivals after 2004 areprojected to increase by the preceding year rate plus 0.1percentage point (e.g. 5.1% in 2005 and 5.2% in 2006). Inthe “with TDP” case, tourism arrivals are projected toincrease by the preceding year rate plus 0.25 percentagepoints (e.g. 5.25% in 2005 and 5.5% in 2006). By 2014, thebase case increase in tourism arrivals is 6% while the “withTDP” case increase is 7.5%. Continuing these rates ofgrowth for another 10 years, to 2024, would result inunrealistic increases. Hence the increase in the growthrate is halved.4 The baseline assumptions are summarizedin Table A3.1.

Another important factor in determining botheconomic and financial returns is the average length ofstay of tourists. For 2002, this was 21 days in the case ofIndia,5 12 days for Nepal,6 and 7 days for Bhutan.7 Inthe absence of data for Bangladesh, the averagelength of stay for was assumed to be 9 days. On thisbasis, the weighted average length of stay for SASECcountries was 17 days. This length of stay is used inthe analysis.8

Yet another important factor in determiningeconomic and financial returns is average expenditure perday by foreign tourists.9 For 2002, this was $92 for

Bangladesh,10 $180 for Bhutan,11 $108 for India,12 and$65 for Nepal.13 The weighted average was $78, andthis level has been used in the analysis.

Tourists have been classified into fourcategories: foreign tourists arriving by air, foreigntourists by land, subregional tourists by air, andsubregional tourists by land. The percentage oftourists arriving by air is about 75% in the case ofBangladesh, 80% for Nepal, 87% for India, and 90%for Bhutan. The weighted average is 80%. In theanalysis a slightly lower figure is used (75%), on theexpectation that development of the Asian Highwayand other road and cross-border improvements willencourage greater access by land.

Increased airport traffic as a result of increasingnumbers of tourists will result in increased revenues frompassenger fees, aircraft landing fees, airfares, and busfares. In order to include these benefits in the economicand financial evaluation, several additionalassumptions have been made, as indicated in TableA3.2. Tourist arrivals by air are assumed to increaseover the projection period at the rates indicatedearlier for tourist arrivals as a whole.

The overall economic life of the project isassumed to be 20 years. Projects 1 to 7 and the 11national area programs are phased in over the first5 years, while private sector investments under theTourism Investment Fund are phased in over a 10-year period.

With these assumptions, expected tourist arrivalsto the SASEC subregion14 over the next 20 years areshown in Table A3.3.

Aircraft movement in the SASEC subregion with andwithout the TDP are projected as shown in Table A3.4.

The focus of economic evaluation is the impact ofthe TDP on the subregional economy. Other benefits ofthe TDP, which have not been quantified fully, include:increased employment opportunities, includingopportunities for construction employment;improved access to other parts of the region as aresult of the improvement of transportation;improved operating efficiencies due to project;facilitation of transportation in tourist related areas;improved access to communities’ social welfare,which translates into greater resources use

3 On a country basis, the annual growth rates were 9.7% for Bangladesh,11.8% for Bhutan, 4.3% for India, and minus 0.4% for Nepal. The highgrowth rates for Bangladesh and Bhutan reflect growth from very lowinitial levels. Bhutan’s Ninth Plan targets 15,000 tourist arrivals by2007; India’s Tenth Plan targets 4.3 million by 2007; and Nepal’s TenthPlan targets 516,000 by 2006. These targets imply average annualgrowth rates of 34%, 11%, and 9%, respectively.

4 This means that the base case increase in tourism arrivals in 2015 is6.05%, rather than 6.1%. For the “with TDP”, this means that theincrease in tourism arrivals in 2015 is 7.63% rather than 7.75%.

5 Department of Tourism. 2002. National Tourism Policy. New Delhi: Ministryof Tourism and Culture, Government of India.

6 Ministry of Culture, Tourism and Civil Aviation. 2002. Nepal TourismStatistics 2001. Kathmandu.

7 As per The Ninth Plan of Bhutan, the length of stay by trekkers averaged7.4 days.

8 The weights used throughout this section are computed on the basisof number of tourist arrivals in 2003.

9 The possible impact of the TDP on domestic tourism is not includedin the analysis.

1 0 Estimate.1 1 According to Bhutan Private Sector Survey 2002, an approximate charge for a

7-day package for Bhutan is $1260, or $180 per day.1 2 According to Bhutan Private Sector Survey 2002, an approximate charge for a

7-day package for India is $755, which means $108 per day.1 3 Ministry of Culture, Tourism, and Civil Aviation. 2003. Nepal Tourism

Statistics 2002. Kathmandu.1 4 This includes the 13 states of India plus Nepal, Bhutan and

Bangladesh.

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Table A3.2: Summary of Baseline Assumptions

Tourist movement in 2003 (million) 1.14Foreign tourist movement in 2003 (million) 0.85Foreign percentage of tourist movement in 2003 (%) 70Subregional percentage of tourist movement in 2003 (%) 30Seat occupancy rate (%) 70Number of aircraft movements due to tourists without TDP 276,500

TDP = Tourism Development Plan

Source: TDP Study

Table A3.1: Additional of Baseline Assumptions

Tourism without Tourism Development Plan

Number of Tourists in Base Year 2003 (SASEC countries) 3,223,805Number of Tourists in Base Year 2003 (SASEC subregion) 1,531,508Tourists by air (%) 75Foreign percentage of tourists by air (%) 75Subregional percentage of tourists by air (%) 25Percentage of tourists by land (%) 25Foreign percentage of tourists by land (%) 25Subregional percentage of tourists by land (%) 75Others 0Visa fee ($) 30Profit margin of airlines / bus operators. (%) 10Value added by tourism (%) 65Average length of stay (days) 17Miscellaneous revenues (% benefits) 1

SASEC = South Asia Subregional Economic Cooperation

Source: TourismDevelopment Plan Study

Table A3.3: Projected Tourist Arrivals in SASEC Subregionmillion

Year Without TDP With TDP

2006 1.679 1.6862010 2.076 2.1392014 2.607 2.8172018 3.306 3.8062022 4.226 5.2382025 5.104 6.737

SASEC = South Asia Subregional Economic Cooperation, TDP = TourismDevelopment Plan

Source: TDP Study

184


1 5 The SAARC nations have been discussing for some time dropping visafee charges for their nationals. In this connection, some selectedSasec countries have already started dropping these fees for nationalsof selected countries. Due to this, benefits from visa fees charged tosubregional visitors have been ignored in the economic and financialevaluation.

1 6 FNCCI UNDP. 2002. Bhutan Private Sector Survey . Thimphu: Department ofTourism, Government of Bhutan

1 7 Government of India. 2002. Tenth Five Year Plan (2002-2007). New Delhi.

Table A3.4: Number of Aircraft Movements in SASEC Subregion(‘000)

Year Without TDP With TDP

2006 306 3072010 378 3892014 475 5132018 602 6932022 769 9542025 929 1,226

SASEC = South Asia Subregional Economic Cooperation, TDP = TourismDevelopment Plan

Source: TDP Study

efficiencies; and operating cost savings, amongothers. The above benefits have been partiallyconsidered in the analysis in the form ofmiscellaneous benefits.

In fact, the Plan will produce a number ofbenefits, both social and economic, with the primarybenefit being the stimulation of tourism activity.Due to the integrated nature of ecotourism andBuddhist circuit development programs, thosetourism benefits have been captured in the overalleconomic evaluation.

C. Detailed Evaluation Results

Details of the economic evaluation are shownin Table A3.5. The economic internal rate of returnfor the overall Plan has been determined to be 35%.

1. Economic Sensitivity Analysis

A sensitivity analysis was carried out on theeconomic internal rates of return and the resultsare summarized in Table A3.6.

The economic sensitivity analysis indicates thatthe EIRR estimate is generally sound and remainsacceptable under all tested assumptions. The EIRRis, of course, sensitive to fewer that expected tourists,higher costs than expected for the projects, and todelays in implementation. However, the TDP remainsviable in economic terms.

2. Financial Internal Rate of Return

The financial internal rate of return (FIRR) hasalso been computed for the TDP as a whole, ratherthan on a project-by-project basis.

Incremental revenues to governments ofSASEC countries include landing and passengerfees, visa fees, and other taxes.15 The detailed FIRRcalculations are shown in Table A3.7. It is estimatedto be 16%, well above the weighted average cost ofcapital (5% in real terms).

3. Financial Sensitivity Analysis

Financial sensitivity analysis indicates arelatively stable FIRR, shown in Table A3.8. As inthe case of the economic sensitivity analysis, theFIRR is sensitive to fewer that expected tourists,higher costs than expected for the projects, and todelays in implementation. However, the TDP isshown to remain financially sustainable evensubject to such developments.

4. Employment Analysis

Tourism is a labor-intensive industry and hasthe potential to be a major source of employmentgeneration. In Bhutan, the tourism sector providesdirect employment to an estimated 3,500 persons.16

India’s travel and tourism industry is estimated toaccount for 2.9% of total employment, or over800,000 jobs.17 The share of this accounted for bythe 13 North and North East States is estimated tobe about 35%, hence it appears that about 300,000

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APPENDIX 3

Table A3.5: Economic Internal Rate of Return Estimate for the Tourism Development Plan($’000 except where noted)

Incremental IncrementalAirport Airline /

Revenue Bus IncrementalCapital Incremental (landing & Operators’ Tourism Misc. Total Cash

Year Cost O&M pax fees) Benefits Benefits Benefits Benefits Flow

2005 (18,000) – – – – – – (18,000)2006 (22,500) (270) – – – – – (22,770)2007 (31,500) (608) – – – – – (32,108)2008 (22,500) (1,080) 4 – – – 4 (23,576)2009 (18,000) (1,418) 38 2 94 1 135 (19,283)2010 (9,000) (1,688) 83 189 11,348 116 11,737 1,0502011 (9,000) (1,688) 141 434 25,973 265 26,813 16,1252012 (9,000) (1,688) 214 743 44,532 455 45,944 35,2572013 (9,000) (1,688) 305 1,130 67,686 691 69,812 59,1252014 (9,000) (1,688) 416 1,606 96,209 982 99,213 88,5262015 – (1,688) 546 2,164 129,640 1,324 133,674 131,9872016 (900) (1,688) 698 2,816 168,680 1,722 173,915 171,3282017 (1,125) (1,688) 874 3,575 214,122 2,186 220,757 217,9442018 (1,575) (1,688) 1,078 4,456 266,873 2,724 275,130 271,8682019 (1,125) (1,688) 1,314 5,475 327,962 3,348 338,099 335,2872020 (900) (1,688) 1,587 6,654 398,562 4,068 410,871 408,2832021 – (1,688) 1,901 8,014 480,008 4,899 494,822 493,1352022 – (1,688) 2,263 9,580 573,821 5,857 591,520 589,8332023 – (1,688) 2,678 11,382 681,732 6,958 702,750 701,0632024 – (1,688) 3,155 13,452 805,715 8,223 830,546 828,8582 0 2 52 0 2 52 0 2 52 0 2 52 0 2 5 – (1,688) 3,702 15,828 948,020 9,675 977,225 975,538

Total (163,125) (30,375) 20,998 87,501 5,240,976 53,495 5,402,969 5,209,469EIRR 35.1%

O & M = Operation and maintenance.


Table A3.6: Economic Sensitivity Analysis(%)

Sensitivity testing EIRR

Base case 35.1Tourists down by 20% 32.1Costs up by 10% 33.8Benefits down by 10% 33.6Benefits delayed by one year 31.4Costs up by 10% - Benefits down by 10% 32.4

EIRR = economic internal rate of return.


186


Table A3.7: Financial Internal Rate of Return Estimate for the Tourism Developmen Plan($’000 except where noted)

Incremental IncrementalAirport Government

Revenue RevenueCapital Incremental (landing & (visa fees, Misc. Total Cash

Year Cost O&M pax fees) and taxes) Benefits Benefits Flow

2005 (20,000) – – – – – (20,000)2006 (25,000) (300) – – – – (25,300)2007 (35,000) (675) – – – – (35,675)2008 (25,000) (1,200) 4 – – 4 (26,196)2009 (20,000) (1,575) 38 21 1 60 (21,515)2010 (10,000) (1,875) 83 2,568 27 2,678 (9,197)2011 (10,000) (1,875) 141 5,878 60 6,079 (5,796)2012 (10,000) (1,875) 214 10,078 103 10,395 (1,480)2013 (10,000) (1,875) 305 15,319 156 15,780 3,9052014 (10,000) (1,875) 416 21,774 222 22,412 10,5372015 – (1,875) 546 29,340 299 30,185 28,3102016 (1,000) (1,875) 698 38,175 389 39,262 36,3872017 (1,250) (1,875) 874 48,460 493 49,827 46,7022018 (1,750) (1,875) 1,078 60,398 615 62,091 58,4662019 (1,250) (1,875) 1,314 74,224 755 76,294 73,1692020 (1,000) (1,875) 1,587 90,202 918 92,707 89,8322021 – (1,875) 1,901 108,635 1,105 111,641 109,7662022 – (1,875) 2,263 129,866 1,321 133,450 131,5752023 – (1,875) 2,678 154,289 1,570 158,537 156,6622024 – (1,875) 3,155 182,348 1,855 187,359 185,4842025 – (1,875) 3,702 214,555 2,183 220,439 218,564

Total (181,250) (33,750) 20,998 1,186,131 12,071 1,219,201 1,004,201FIRR 16.2%

O & M = Operation and maintenance.Source: TDP Study

Table A3.8: Financial Internal Rate of Return Sensitivity Analysis(%)

Sensitivity testing FIRR

Base case 16.2Tourists down by 20% 14.0Costs up by 10% 15.2Benefits down by 10% 15.1Benefits delayed by one year 14.8Costs up by 10% - Benefits down by 10% 14.2

FIRR = financial internal rate of return.

Source: TDP Study

187

APPENDIX 3

Table A3.9: Estimated Employment Generation in SASEC Subregion With and Without the TDP

2006 2010 2014 2018 2022 2025

Employment generation without TDPTourists without TDP 1,679,264 2,076,368 2,606,555 3,306,263 4,225,507 5,104,198Direct employment 479,790 593,248 744,730 944,647 1,207,288 1,458,342Indirect employment 599,737 741,560 930,912 1,180,808 1,509,109 1,822,928

Total employment 1,079,527 1,334,808 1,675,642 2,125,455 2,716,397 3,281,270

Employment generation with TDPTourists with TDP 1,686,457 2,139,144 2,817,068 3,806,031 5,238,238 6,737,092Direct employment 481,845 611,184 804,877 1,087,438 1,496,640 1,924,883Indirect employment 602,306 763,980 1,006,096 1,359,297 1,870,799 2,406,104

Total employment 1,084,151 1,375,164 1,810,972 2,446,735 3,367,439 4,330,988

Incremental employmentgeneration with TDP

Incremental number of tourists 7,192 62,775 210,513 499,768 1,012,732 1,632,894Direct employment 2,055 17,936 60,147 142,791 289,352 466,541Indirect employment 2,569 22,420 75,183 178,489 361,690 583,176

Total employment 4,624 40,356 135,330 321,279 651,042 1,049,718

SASEC = South Asia Subregional Economic Cooperation, TDP = Tourism Development Plan.

Source: TDP Study

1 8 Government of Nepal. 2001. Tenth Five Year Plan (2001-2006). Kathmandu.1 9 A multiplier of 1.5 is cited in the National Tourism Policy 2002 of

India, but when combined direct and indirect employment figures arecompared to tourism arrivals the relationship appears to be overstated.

are directly employed in tourism in the SASECsubregion. The Tenth Plan of Nepal states that thetourism sector provided employment to 80,000persons in 2001. Nepal plans to increase directemployment in tourism to 150,000 over the next 15years.18 Indirect employment resulting from thetourism industry is difficult to determine, but itappears to be in the range of 1.25%.19

On the basis of this background, therelationship between direct employment and touristnumbers was estimated. It is assumed that 3.5foreign tourists generate one direct job in thetourism industry. This ratio was applied to theprojected tourist arrivals shown earlier, to yielddirect employment estimates for both the base caseand for the “with TDP” case. Next, the ratio of directto indirect jobs was applied (assumed at 1.25), toyield indirect employment estimates for both thebase case and for the “with TDP” case. These weresummed to indicate total employment estimates,and the incremental impact expected as a result ofthe Plan.

Table A3.9 indicates significant employmentgeneration over the period to 2014, and over thelonger term to 2025. By 2014, it is expected that theTDP will result in 135,000 additional jobs in thesubregion.

The impact on unemployment would be onlymarginal, however, as the number of unemployedin the subregion is very high. In 2002, some 2.2million people in Bangladesh, 17.3 million peoplein the 13 North and North East states of India,20

and 0.18 million people in Nepal21 were estimatedto be unemployed. The relationship betweenunemployment and population was used toestimate levels of unemployment during theprojection period.22 This enabled calculation of theincrease in unemployment numbers from one yearto the next. When employment generation from theTDP is considered in light of the projected growthin unemployment, it can be concluded that the TDPwill make a significant contribution to slowing the

2 0 Total unemployed for India has been estimated at 41.2 million ofwhich about 40% is accounted for by the 13 states in the North andNorth East.

2 1 ADB. 2004. Key Indicators 2003. Manila.2 2 The unemployed population represents 1.7% of Bangladesh’s total

population, 3.9% of India’s and 0.8% of Nepal’s.

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Table A3.10: Estimated Contribution of the TDP to Reducing Growthof Unemployment in SASEC Subregion

(‘000 of Jobs except where noted)

Country 2006 2010 2014 2018 2022 2025

Bangladesh 2,313 2,472 2,642 2,825 3,019 3,174Bhutan 7.0 7.7 8.0 8.3 8.7 8.9India (SASEC states only) 19,338 22,450 26,062 30,255 35,122 39,280Nepal 184 190 196 202 208 213Total unemployment 20,883 22,604 24,468 26,485 28,668 30,423Incremental annual unemployment 409 443 480 519 562 597Incremental annual employment provided by tourism project 3.2 13.1 31.5 57.2 100.4 151.3Incremental annual total employment provided by TDP as a % of incremental annual unemployment 0.8 3.0 6.6 11.0 17.9 25.4

SASEC = South Asia Subregional Economic Cooperation, TDP = Tourism Development Plan.

Source: TDP Study

growth of unemployment in the subregion.23 Theestimates are shown in Table A3.10.

5. Poverty Analysis

The SASEC Tourism Development Plan also ishighly relevant to poverty reduction. Besidesgenerating new employment and incomeopportunities for the population generally in theSASEC subregion, the national area programsinclude some of the poorest areas in the subregion.

The proportion of the total population livingin poverty is about 50% in the case of Bangladesh,23% for Bhutan in 2000, 26% for India, and 42% forNepal.24 Poverty is thus widespread and severe.25

The 13 North and North East states account for 42%

of India’s population,26 and it is a poor region ofIndia. Overall for the SASEC subregion, more than200 million live in poverty. As shown in Table A3.11,this level will likely climb, even if the incidence ofpoverty declines, reflecting the rapid rate ofpopulation growth.

As in the case of unemployment, an effort hasbeen made to calculate the contribution of the TDPto slowing the increase in the number of peopleliving in poverty as shown in Table A3.11. Based onthe same method (i.e. incremental employment asa percentage of incremental growth in the numbersof poor people), it is concluded that the TDP wouldcontribute significantly to slowing the increase inthe number of poor people in the subregion.27

2 3 Simply comparing incremental unemployment to incrementalemployment generation resulting from the TDP suggests that the TDPcould result in reducing incremental unemployment by 0.8% in 2006,by 6.6% in 2014, and by 25.4% in 2025. However, this assumes that allnew employment generation as a result of the TDP is filled from theranks of the unemployed, which is most unlikely. Still, there will be afilter down effect.

2 4 ADB. 2003. Key Indicators 2002. Manila. The reference years vary from 1998to 2002, hence updating is needed.

2 5 By comparison, the proportion of the population living in poverty inIndonesia was 18%, 8% in Malaysia, 13% in Thailand, and 25% in SriLanka.

2 6 As per the Population Census 2001, population in India was 1,027.015million, while the population in 13 Northern and Northeastern Stateswas 431.8 million (41.8%).

2 7 The incremental annual employment due to the project as a percentageof incremental annual population below the poverty line wouldincrease from 0.2% in 2006 to 1.5% in 2014, and finally to 6.6% in2025. The incremental employment generated by the project wouldthus help to reduce incremental poverty over a period of time.

189

APPENDIX 3

Table A3.11: Poverty Alleviation through Tourism(‘000 except where noted)

2006 2010 2014 2018 2022 2025

(a) Population below poverty line 191,200 199,000 207,100 215,500 224,200 231,000(b) Incremental annual

population below poverty line 1,860 1,930 2,010 2,090 2,180 2,240(c) Incremental annual

employment with TDP 3 13,000 31,000 57,000 100,000 151,000(d) Incremental employment with TDP

as a percent of incrementalpopulation below poverty line (%) 0.2 0.7 1.5 2.7 4.5 6.6

TDP = Tourism Development Plan.

Source: TDP Study

190


1 Department of National Parks and Wildlife Conservation (DNPWC),Government of Bhutan.

Appendix 4: KAppendix 4: KAppendix 4: KAppendix 4: KAppendix 4: Key Area Development Conceptsey Area Development Conceptsey Area Development Conceptsey Area Development Conceptsey Area Development Concepts

KEY AREA 1. BARDIYKEY AREA 1. BARDIYKEY AREA 1. BARDIYKEY AREA 1. BARDIYKEY AREA 1. BARDIYA AND SUKLAPHANTA AND SUKLAPHANTA AND SUKLAPHANTA AND SUKLAPHANTA AND SUKLAPHANTA TO DUDWA TO DUDWA TO DUDWA TO DUDWA TO DUDWA NAA NAA NAA NAA NATIONAL PARKSTIONAL PARKSTIONAL PARKSTIONAL PARKSTIONAL PARKS

Current Patterns

The national parks of the lowland Terai in Nepal andIndia are renowned for their biodiversity and wildlifeviewing, particularly of the Royal Bengal tiger. The WorldWildlife Fund (WWF) Terai Arc Landscape ConservationProject endeavors to link 11 Nepal and India trans-borderprotected areas, including Bardiya and Suklaphanta inwest Nepal, with Dudwa and Jim Corbett National Parksin India through biological corridors.

In 2002, 4,399 foreign visitors (down from 6,100 in2001) enjoyed the well-developed wildlife facilities ofRoyal Bardiya National Park. But only 67 (down from340 in 2001) reached Royal Suklaphanta National Park,severely constrained by security issues in the region.1

Dudwa National Park in Uttar Pradesh has beenestablished as the “Tiger Haven” by Indianconservationist Billy Arjun Singh. In 2003 Dudwareceived 4,850 domestic and 52 foreign tourists.Significant numbers of Indians (86,886 in 2003, up 41%from 2002) and some foreigners (4,170 in 2003, up 13%from 2002) visit Jim Corbett National Park, often incombination with the Indian hill station of Nainital.Poor road connections, border facilities between Nepaland India, and security are some of the constraints.

Likely Future Directions

Although tourist arrivals are currently low, thereis potential for a major wildlife-viewing tourism circuitlinking the protected areas of Bardiya and Suklaphantain Nepal with Dudwa National Park in India. This couldeventually even link up with Jim Corbett National Parkand Nainital. Circuit patterns had begun to emerge inthe 1990s before they were stopped by local unrest.Creating and promoting a tourism circuit wouldsupport international conservation efforts led by theWWF Terai Arc biological corridor project andConservation International’s Eastern HimalayanEcoregion initiative.

Nepal has given high priority to improving itsunderdeveloped Far West region. Improvements atDhangadhi Airport, located between Bardiya and

Suklaphanta, and at border facilities at Gauriphanta,will stimulate travel and provide linkages with thewestern hub of Nepalganj, the gateway to Bardiya.Mahendranagar Airport and Banbasa border crossingare located near Suklaphanta. No airport serves theIndian region, but there are rail and road connections.Allowing tourist-registered vehicles cross-border accesscould further stimulate tourism patterns.

Role in Developing Ecotourism andBuddhist Circuits

These protected areas offer a chain of premierwildlife viewing opportunities in poor and undevelopedparts of Nepal and India. Improved roads and borderfacilities would encourage travel operators to packagethis circuit when security improves. This is likely to be along-term project and is dependent on solutions beingfound to the current conflict in Nepal.

Project Ideas

1. Dhangadhi Airport Improvements. Airportimprovements at Dhangadhi will facilitate directaccess to this remote corner of Nepal and toRoyal Suklaphanta National Park. Improvedrunway, terminal, and navigation facilities willincrease tourism flows, benefiting the local area.

2. Border Crossing Facilities and Wayside Amenitiesin Far West Nepal. Improving border crossingfacilities and wayside amenities in Far West Nepalbetween Gauriphanta and Narayanghat will facili-tate domestic and international tourism, linkingthe tourism attractions of Dudwa, Suklaphanta,and Bardiya. This will eventually help tourism link-ages with Lumbini, Chitwan, and Kathmandu.

3. Wayside Amenities in Uttar Pradesh. Waysideamenities on India’s national highway in UttarPradesh from Gauriphanta to Dudwa—andeventually to Jim Corbett National Park andNainital, managed with community participation,will help create new international tourism flowsbetween Nepal and India. They will also facilitatedomestic tourism linkages.

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APPENDIX 4

2 Nepal Tourism Board. 2004. Lumbini Visitors’ Survey Final Draft Report.Kathmandu: Tourism for Rural Poverty Alleviation Program.

The Footsteps of the Lord Buddha circuit isestablished as an icon product of the South AsiaSubregional Economic Cooperation (SASEC) subregion,associated as it is with the life of the Lord Buddha. Itcomprises the premier Buddhist pilgrimage placesof Rajgir, Nalanda, Bodh Gaya, and Vaishali in Bihar,India; Sarnath, Kushinagar, and Sravasti in UttarPradesh, India; and in Nepal, Lumbini, its sevensurrounding sites, and Tilaurakot in Kapilavastu.

It is estimated about 50,000 persons travel thecircuit annually, and many more visit individualsites. Tourism operators estimate that only 6,000 to7,000 foreign visitors travel the circuit in packagegroups, organized mainly by New Delhi-basedagents. There are great opportunities to boost thesehigh-yield market segments. There is little or nocoordination between Nepal and India in terms ofprotection, promotion, or product development ofthe sites. Constraints include poor roads, facilities,and security, and lack of information.

A recent Lumbini Visitor Survey2 indicated a highlevel of customer satisfaction and desire for repeat visits.The survey also reports interest in new products—suchas tours to other Buddhist sites, a site museum, culturalshows, and improved handicrafts—that would helplengthen visitors’ stay and benefit local communities.


The opening of Bodh Gaya Airport for internationalflights, and recent reforms in the aviation sector in India(allowing private airlines to operate regional routes,and changes in charter regulations) is likely toradically change arrival patterns on the circuit. Thedevelopment of a new international airport inNepal’s Terai could also facilitate access, dependingon its location. Direct air links to Sri Lanka, Thailand,Republic of Korea, Japan, Myanmar, People’sRepublic of China (PRC), Taipei,China, and BodhGaya would facilitate and substantially stimulatepilgrim and other visits. Airport improvements couldalso facilitate the circuit and encourage linkages withBuddhist heritage sites in Kathmandu Valley.

Poor roads and wayside amenities currentlyhamper the flow of tourists. There is excellentpotential to increase visits from domestic, intra-

KEY AREA 2: LUMBINI TO INDIA BUDDHIST SITESKEY AREA 2: LUMBINI TO INDIA BUDDHIST SITESKEY AREA 2: LUMBINI TO INDIA BUDDHIST SITESKEY AREA 2: LUMBINI TO INDIA BUDDHIST SITESKEY AREA 2: LUMBINI TO INDIA BUDDHIST SITES

Current Patterns regional, and international market segments,including broadening the appeal to generalsightseers, if facilities and connectivity is improved.Currently only a small percentage of travelers reachall the four main sites: Lumbini, Bodh Gaya,Sarnath, and Kushinagar.


To take advantage of growing trends, theFootsteps of the Lord Buddha circuit needs to befurther developed and positioned as the iconicBuddhist product. It is the key SASEC product todeliver the “Buddhist Heartland” positioning, withthe power to attract the growing market segmentsof international pilgrimage and spiritual visitorsfrom all over the world.

New directions for development need to focus onremoving constraints relating to poor airconnectivity, capacity, and facilities, inadequateinternal communication—including roads andwayside amenities, site maintenance, preservation,presentation, and interpretation. Combinedpromotion by Nepal and India of the Footsteps ofthe Lord Buddha circuit is needed to mutuallyreinforce marketing and to combat negative securityperceptions.

The objective of tourism improvements on theFootsteps of the Lord Buddha circuit isimprovement in visitor satisfaction levels throughbetter quality products and services. The impact willbe felt in increased arrivals of tourists, leading tomore local income and employment.

Project Ideas

1. Road improvements on the circuit in India. Roadimprovements are required immediately fromVaranas/Sarnath to Bodh Gaya to Patna.

2. Wayside amenities on the circuit in India.Wayside amenities, managed with communityparticipation and the support of the Japan Bankfor International Cooperation (JBIC), are neededon the entire circuit in India, particularly facilitiesat the border crossing Sunauli. Preservation,security, and safety will be improved when localcommunities benefit from tourism.

192


3. Visitor facilities and interpretation in Bihar andUttar Pradesh. Improvements in visitor facilitiesand interpretation, with the involvement of localcommunities. Guide training at Rajgir, Nalanda,Bodh Gaya, and Vaishali in Bihar, and in Sarnath(with JBIC), Kushinagar (with JBIC), and Sravastiin Uttar Pradesh.

4. Improved visitor facilities in Nepal.Improvements in visitor facilities andinterpretation centers, signage, a site museum,and guide training at Lumbini and Kapilavastuin Nepal.

5. Bhairahawa Airport improvements. Improvementsin Bhairahawa Airport (visitor information,runway, terminal, and communication/navigationfacilities) to facilitate access.

6. Water supply infrastructure improvements atLumbini. Improved water supply infrastructurein the main Lumbini Masterplan area, asidentified in the Asian Development Bank (ADB)Ecotourism Project 2001.

KEY AREA 3: KANCHENJUNGA (KHANGCHENDZONGA),KEY AREA 3: KANCHENJUNGA (KHANGCHENDZONGA),KEY AREA 3: KANCHENJUNGA (KHANGCHENDZONGA),KEY AREA 3: KANCHENJUNGA (KHANGCHENDZONGA),KEY AREA 3: KANCHENJUNGA (KHANGCHENDZONGA),SIKKIM AND DARJEELINGSIKKIM AND DARJEELINGSIKKIM AND DARJEELINGSIKKIM AND DARJEELINGSIKKIM AND DARJEELING

Current Patterns

Mount Kanchenjunga (Khangchendzonga)(8,589 meters) is the world’s third-highest mountain.It straddles east Nepal, Sikkim in India and the TibetAutonomous Region (TAR) of the PRC. It isprotected as the Khangchendzonga BiosphereReserve in Sikkim, the Darjeeling Hills in WestBengal and the Kanchenjunga Conservation Area(KCA) in Nepal. There are plans by the Governmentof Bhutan to privatize the management of the KCA,one of the 200 WWF Global Ecoregions. TheKhangchendzonga Conservation Committee (KCC)in India has an active program of ecotourismactivities designed to ensure the local Lepcha andBhutia peoples are involved in tourism benefits.

The KCA was formerly Nepal’s fourth mostpopular trekking and mountaineering destination,offering remote wilderness and unspoiled naturewith wildlife, including blue sheep, red pandas,musk deer, black bears, snow leopards, 202 speciesof birds, 69 varieties of orchids, and 30 varieties ofrhododendron. Arrivals have dropped to almost zero(3 foreign visitors in 2002) from around 700 permitsissued in 2000, due to safety and security concerns.Access is difficult: either by air to Taplejung Airport,or by road from Biratnagar via Basantapur and Ilamto Taplejung. The main trek routes go to Pangpema(4,940 meters), near the north base camp, and toOktang (4,780 meters), near the south base camp. Avisitor management plan has been prepared for thearea but is yet to be endorsed.

The “Lost Horizon” of Sikkim is home to over4,000 species of plants, most of them rare, and is

drained by the mighty Teesta, Rangit and Rangporivers. Trekking trails lead to hidden lakes and ancientBuddhist monasteries. Mountaineering is banned inSikkim out of respect for the “sacred landscape” of theEastern Himalaya. In the KhangchendzongaBiosphere Reserve of West Sikkim the main routestarts at the Yuksam roadhead to Dzongri. TheSinghalila trek (Uttare to Yuksam via Dzongri) alongthe border range goes through Chiwa Bhanjyang,Dhond, Garakhet, Danfebhir-Gomathang, andPangding between the Chyangthapu and Kanglakhangpass in Nepal. All treks in Sikkim must beaccompanied by a registered agent, and areconstrained by regulations that require trek permitsto be issued only from Gangtok.


There is great mutually beneficial potential totap into the ecotourism flows of Sikkim andDarjeeling with cross-border trekking linkagesbetween KCA in Nepal, the KhangchendzongaBiosphere Reserve in Sikkim, and Darjeeling Hills inWest Bengal. Sikkim-Nepal and Darjeeling-Nepalcross-border trek possibilities will benefit tourismactivities on both sides of the border. This requiresopening the border crossings on the ChiwaBhanjyang and Kanglakhang trek pass, which arecurrently closed. Opening of the PashupatinagarRoad border crossing between Nepal and Darjeelingfor international tourists (currently open only forIndian and Nepali nationals) would improve tourismfrom Nepal to Darjeeling.

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The Great Himalayan Trail route passes throughEast Nepal and Sikkim and presents both marketingand development opportunities. The proposed trekroute is Taplejung, Tseram to Yalung (Nepal), andacross Kanglakhang to Pangding, Dzongri andYuksam. One then drives via Ravangla to Gangtok,and again treks to Nathu La to Chumbi Valley in PRC(TAR) to Phari to Ha in Bhutan. Alternatively, onecould trek to Thangsing, Labdang, Tashiding, Ralang,Meanam, Dzongu, Mangan, Phodong, Gangtok, etc.

The opening of the Bagdogra Airport as aninternational and regional air hub for the SASECsubregion has the potential to facilitate access tothe subregion, with a positive impact on tourism,especially in Sikkim, Darjeeling, and Bhutan. A newcable car (ropeway) from North Darjeeling to SouthSikkim, similar to the Singla Valley cable car in SouthDarjeeling, could open up new tourism circuits.

There are local efforts led by the Associationfor Conservation and Tourism (ACT) to useecotourism to enhance conservation and benefitlocal people in the so-called Teesta Ecoregion.Efforts are concentrated on the development ofthree circuits:

(i) Darjeeling Hill Circuit. The ridge betweenDowhill (Kurseong) to Tiger Hill (Darjeeling),with Bagora in the center, is to be included. Allthe valleys east of the ridge have to be coveredin four lines. These are the Peshoke Lopchuline, Takdah Tinchulay line, Rambi Mongpuline, and the Latpanchor Kalijhora line.

(ii) Kalimpong Hill Circuit. This is a circularcircuit that rises from Rangpo and goes toMoongsong, Algarah, Pedong, Lava,Rishyap, Loleygaon, and Neora ValleyNational Park. It then gradually descendsto the Chel valleys of Garubathan,Bagrakot, and Mongpong, meeting theRiver Teesta. After crossing the river oneproceeds to the Terai-Dooars Forest circuitand the Darjeeling Hill circuit, finallyreaching Rangpo through Tarkhola.

(iii) Terai-Dooars Forest Circuit. This starts withthe Mahananda Wildlife Sanctuary, coversthe large Baikanthapur Forest division,Gajoldoba, the largest wetland of theregion on the Teesta River, GarumaraNational Park, etc.


Well coordinated subregional marketing as anecotourism destination could help Sikkim restoreits former strong international tourism flows. Cross-border treks in the sacred landscape of MountKanchenjunga (Khangchendzonga), shared betweenEast Nepal, West Sikkim and the PRC (TAR), couldpresent a unique ecotourism-adventure trek productwhen security improves and border restrictions ease.Better access would result from the development ofBagdogra, into a regional hub with internationalstatus and improvements at Taplejung Airport. TheKanchenjunga regional ecotourism park concept,linking Nepal, India, and the PRC for a commontrans-border conservation strategy, has thepotential of tackling common problems moreeffectively. The concept would also help to promotecontrolled tourism activity for the mutual benefit ofthe parties involved. An alliance of international nongovernment organizations (NGOs) is engaged in thisactivity, including MacArthur Foundation, theInternational Center for Integrated MountainDevelopment (ICIMOD) and The Mountain Institute.WWF Nepal is active in KCA and prepared the KCATourism Plan, which includes cross-border proposalsfor the long term. The experience amongconservation managers, NGOs, and the tourismindustry could be usefully shared at the proposedSustainable Tourism Forum.

Project Ideas

1. Road improvements and wayside amenities inNepal. Improvements in roads and waysideamenities from Taplejung to Charali/Birtamodto Bhadrapur Airport to the Kakarbita bordercrossing in Nepal would improve access andcross-border linkages.

2. A program of ecotourism improvements in theKCA. A program of ecotourism improvements,such as local guide training, small-scaleinfrastructure, waste management, and signagein the KCA, as described in the WWF KCATourism Plan and ADB Ecotourism Project(2001).

3. An Ecotourism Plan for West Sikkim. Acomprehensive Ecotourism Plan for WestSikkim, including product development andmarketing components, building on KCC

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KEY AREA 4: EAST SIKKIM (NAKEY AREA 4: EAST SIKKIM (NAKEY AREA 4: EAST SIKKIM (NAKEY AREA 4: EAST SIKKIM (NAKEY AREA 4: EAST SIKKIM (NATHU LA) TO WEST BHUTTHU LA) TO WEST BHUTTHU LA) TO WEST BHUTTHU LA) TO WEST BHUTTHU LA) TO WEST BHUTANANANANAN

overwhelmed by the negative impacts of tourism thatfollowed the opening of cross-border roads in otherareas, such as the Mekong. Environmental concernsshould also be paramount in this fragile region.Management solutions to visitor services shouldinvolve the local community.


In the longer term, there is exciting potentialfor reopening the historic mule trail (silk route) tocreate a new trek, first made famous by the latePrime Minister Jawaharlal Nehru’s journey to openup Bhutan. When permissions are agreed, this hasthe potential to be a signature subregionaladventure trek product, combining three countriesand appealing to both domestic and internationalmarkets. The Nehru Trek route starts in Gangtok. Viathe Tsomgo Lake it crosses the Nathu La pass intothe TAR,PRC Chumbi Valley and its hot springs. Thetrek then passes through the historic trading townsof Phari and Jomo, continuing south towardsBhutan into the Ha valley. This route is open yearround, and there are linkages with Lhasa andKalimpong (see Trekking in the Himalaya project).

Project Ideas

1. Tourism Awareness Program in Sikkim. Thisprogram aims to sensitize local people in orderto mitigate negative impacts and ensure theirparticipation in tourism benefits with theopening of Nathu La to TAR, and PRC for trade.A program of training workshops, building onEcotourism and Conservation Society of Sikkm(ECOSS) initiatives, will address grass-rootproblems. The aim is to ensure that local

Current Patterns

Ecotourism concepts are widely accepted inSikkim. One of the state’s major tourist attractionsis the 38 kilometer jeep drive from Gangtok toTsomgo Lake at 3,780 meters, and on to view theNathu La pass (56 kilometer) that crosses the borderin the Chumbi Valley of TAR,PRC (currently closedbut talks are underway). Sikkim is currently producinga masterplan to examine the impact of opening theNathu La. The Nathu La is open to Indian nationalsonly 4 days each week, but Tsomgo Lake is open everyday. Visitors must apply for a permit through aregistered travel agent in Gangtok. The visit to thehistoric trade route of the Nathu La is a highlight forIndian tourists from the plains due to its relativelyeasy access to high altitude snow (4,330 meters).However, about 100 jeeps enter the area each day,and as many as 300 during the high season. Carryingeight passengers each, this creates management andenvironmental impact issues. It is estimated that eachvisitor spends an average of almost $7 equivalent,about half of which is retained in the area for yak ridesand refreshments. There are currently no facilitiessuch as toilets and garbage disposal in the area.


The warming relations between India and the PRC,and the possibility of improving the road throughNathu La pass and opening it for international tradeand tourism, has potential to boost tourism in theentire region. The opening of the Nathu La, at leastto domestic traffic, is reported to be imminent, andwill provide links between the PRC, Sikkim, Kolkata,and Dhaka. Although this will offer dramaticeconomic and employment opportunities for thearea, it is important that people in Sikkim are not

initiatives and bringing together keystakeholders, including resource managers, thetourism industry, and the local community.

4. A visitor management strategy for North WestBengal. A visitor management strategy forNorth West Bengal, including Darjeeling,Kalimpong and the Dooars, would address

current constraints in urban planning, waterand sanitation infrastructure, trafficmanagement, and awareness issues. Thestrategy should build on the ecotourisminitiatives of ACT. A component for marketingtourism could consider how to capitalize on thehigh recognition of the “Darjeeling” brand insource markets with hill station tea tourismrecommendations.

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communities are included in the developmentprocess, with reduced poverty and a healthyenvironment that is stable and conducive tocommerce. Problems of emerging destinationsand the impacts due to the influx of visitors,such as HIV, prostitution, and drugs, will beaddressed. Environmental preservation andconservation of traditional culture will helpsafeguard resources in a sustainable manner.To meet this objective, another input might bea destination management plan prepared inpartnership with resource managers, thetourism industry, and local people.

2. Wayside amenities in Sikkim. Waysideamenities on the road from Nathu La viaTsomgo Lake to Gangtok, Sikkim, managed withlocal participation, will cater to currentexcursionists and the expected influx ofadditional visitors when the pass opens totrade. Visitor information, toilet facilities, andgarbage disposal at Tsomgo Lake will becarefully developed with the involvement oflocal people to protect the fragile, high-altitudeenvironment.

Current Patterns

Royal Manas National Park in Bhutan adjoinsManas National Park in India. Identified as one ofthe 10 global “hotspots,” its rich biodiversityprotects endangered species, including the endemicGolden Langur monkey, the Pigmy hare, and theGangetic dolphin; it is also a prime tiger habitat.Covering the foothills of Bhutan and savannagrassland of Assam, visits to Manas have beenconstrained in recent years by security concerns.Manas is currently closed to road access fromBhutan, but is open on the Indian side, attractingonly 1,409 domestic and 32 foreign visitors in 2003.


Once security improves, the formerly strongvisitor flows to the Indian Manas can be reinstated,and wildlife and adventure circuits can be promotedthat link Kaziranga and other attractions in the NorthEast. There are opportunities for Royal Manas tobecome a premier ecotourism and adventureattraction for Bhutan, extending tourism patterns andshowcasing the Government’s strong commitment toconserving the environment. There are opportunitiesfor cooperative management of resources. When thepolitical situation improves, Manas has the potentialto be one of the subregion’s major attractions,building on its formerly high international profile.


Manas has the potential to be an ecotourismmodel, linking Bhutan and Assam. The experience of

KEY AREA 5: MANAS PROTECTED AREASKEY AREA 5: MANAS PROTECTED AREASKEY AREA 5: MANAS PROTECTED AREASKEY AREA 5: MANAS PROTECTED AREASKEY AREA 5: MANAS PROTECTED AREAS

conservation managers, NGOs, and the tourismindustry could be usefully shared at the proposedSustainable Tourism Forum.

Access from Bhutan is either by road via Trongsa,or on rafting trips down the Mangde Chhu andDamgme Chhu rivers. Elephant-back safaris can bearranged from Tingtibi, with potential for crossing intothe Assam grasslands in India to view wildlife. Boattrips and river cruises could join the BrahmaputraRiver, offering river recreation and fishing. Well-planned sustainable tourism in this Key Area couldprovide alternative livelihoods to poachers, who couldbecome guardians instead of threats to the protectedarea. Other benefits include handicrafts. There is arich tradition of cane culture and cane arts that is alivelihood for locals. Sustainable management of caneharvesting and the introduction of better design,quality control, and marketing of cane products couldbenefit surrounding communities.

Project Ideas

1. A joint Ecotourism Strategy for the Manasprotected areas in Bhutan and India.Preparation of a cooperative Strategy for ManasEcotourism for both Bhutan and India (possiblywith WWF Bhutan), in a participatory processinvolving resource managers, the tourismindustry, and local communities. The emphasiswould be on realistic alternative livelihoodoptions to improve lifestyles and reinforceconservation among locals currentlydependent on Park resources. Associatedworkshops could include training in tourismawareness, visitor management training,homestay programs, and wildlife guiding forthe local communities.

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KEY AREA 6: SUNDARBANS PROTECTED AREASKEY AREA 6: SUNDARBANS PROTECTED AREASKEY AREA 6: SUNDARBANS PROTECTED AREASKEY AREA 6: SUNDARBANS PROTECTED AREASKEY AREA 6: SUNDARBANS PROTECTED AREAS

Current Patterns

The Sundarbans is the largest mangrove forestin the world. The forest straddles Bangladesh andIndia, with two-thirds of the forest in Bangladeshand one-third in West Bengal, India. The forest inboth countries is a natural World Heritage Site,protecting a rich flora and fauna and about 800tigers, spotted deers, rhesus macaques, wild boars,estuarine crocodiles, and monitor lizards. There isheavy pressure on the protected areas by localcommunities, a result of poaching, encroachmentand illegal collection of resources, such as honey.

From Kolkata and Dhaka, every year about50,000 tourists visit the Indian part of the forest andabout 25,000 tourists visit the Bangladesh side. Mostare domestic visitors, with only about 2,000 foreigntourists on each side, the result of low awareness ofthe Sundarbans. Trips are organized independently,usually through tour operators who arrange visits ofone or two nights. Motor launches and houseboatsare used to view the forest, although they are not ofinternational standard. In addition to boats, thereare some private and government lodges and camps.On the Indian side, however, walking in the forest isnot permitted. Currently there are no tourismlinkages between the Indian and BangladeshSundarbans.


Improved accommodation, reduction of traveltime, and increased promotion will help increaseforeign tourism to the Sundarbans. There is goodpotential for quality cultural and wildlife experiences,such as village visits and tiger viewing. In additionto the growing domestic market segments, interestis more likely to come from the traditionalecotourism markets of North America and Europe;Asia-Pacific markets are more familiar withmangrove forests and seen as less promising.

Access to the Sundarbans is improvingsubstantially. In India, the 3-hour journey by boatto the forest at Sajnekhali usually starts from

Sonakhali, a 2.5-hour drive from Kolkata. A bridgeunder construction at Sonakhali will cut the journeyfrom Kolkata to Sajnekhali to 3.5 hours. InBangladesh an airport is under construction atMongla, the starting point for the paddle steamerthat takes visitors to the Sundarbans in 22 hours.When operational, the airport will cut the 8-hourdrive from Dhaka to the paddle steamer to a half-hour flight.

Private-public partnerships are likely to be thesolution to tourism development in the Sundarbans.The Government of Bangladesh is planning to buildlodges deep in the forest, hoping to stimulatepatterns of tourism that combine cruise vessels withwildlife lodges. Sahara, a private entrepreneur, hasplans for large-scale investment in tourism projectsin the Indian part of the forest, including floatinghotels and launches. The West Bengal Governmenthas not approved Sahara’s proposals for casinos.

Private sector cruise boat facilities need to beraised to international standards. In the long termthese could ply both the Bangladesh and Indianparts of the forest, offering a more varied andcomplete Sundarbans experience. High-qualityinterpretation is essential to attract visitors fromhigh-yield international source markets. Futureaccess improvements could involve seaplanesbringing tourists from Dhaka and Kolkata whentourism numbers justify them.


Tourism has a serious role as an alternativelivelihood to reduce current destructive dependencyon the fragile forest environment. More involvementof the local community in tourism activities isessential to reduce unsustainable pressure on theforest. More direct and indirect employment needsto be created through tourism. Possibilities includelocal guides for river cruises, bird and wildlifeviewing, and honey collection, and camp-relatedservices. To ensure the effective involvement of localpeople in tourism benefits, capacity building and

2. A handicraft program based in India. A programfor cane, bamboo, and weaving handicraft,focusing on resource management, design,

production, and marketing, based at BarbetaRoad on the Indian side.

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training of the local community is essential. In termsof conservation and tourism lessons, there isexciting potential for the cooperative sharing ofexperience among conservation managers, NGOs,and the tourism industry at the proposedSustainable Tourism Forum.

Project Ideas

1. Joint Sundarbans Ecotourism Strategy. ASundarbans Ecotourism Strategy for thecombined Bangladesh and India SundarbansWorld Heritage Sites. The process of developingthe strategy could involve resource managersfrom both countries, the tourism industry, andlocal communities. The strategy could ensuresuitable product development and HRDmeasures that involve local people. A jointmarketing and promotional strategy wouldstrengthen the Sundarbans image in domesticand targeted foreign markets.

2. Village tourism homestay and jungle campprogram in Bangladesh. A village tourismhomestay and jungle camp program would

build on ACT’s experience in the IndianSundarbans. Local communities inBangladesh would be trained as guides and inconservation and sustainable productdevelopment (honey hunting).

3. Community-managed conservation interpretationcenter in the Indian Sundarbans. Developmentof a community-managed conservationinterpretation center in the Indian Sundarbans,possibly as the base for a local guideorganization and as an outlet for local produce.This center could provide nature education tothe urbanized domestic visitors from Kolkata.

4. Community-managed conservation interpretationcenter in the Bangladesh Sundarbans.Development of a community-managedconservation interpretation center in theBangladesh Sundarbans, possibly as the basefor a local guide organization and as an outletfor local produce. This center could providenature education to the urbanized domesticvisitors from Dhaka.

KEY AREA 7: PAHARPUR TO SILIGURI AND BAGDOGRAKEY AREA 7: PAHARPUR TO SILIGURI AND BAGDOGRAKEY AREA 7: PAHARPUR TO SILIGURI AND BAGDOGRAKEY AREA 7: PAHARPUR TO SILIGURI AND BAGDOGRAKEY AREA 7: PAHARPUR TO SILIGURI AND BAGDOGRA

Current Patterns

The distance from the great Buddhistmonastery at Paharpur to Bagdogra, via theBangladesh-India border at Banglabandh/Changrabandha, is 327 kilometers—an 8-hour drivealong the Asian Highway. In view of the proposedinternational gateway status of Bagdogra Airport(33 kilometers from the border, via Siliguri), and theimminent opening of the Nathu La in Sikkim,Bangladesh needs to be prepared to benefit fromthe radical new travel patterns that are likely toresult. Paharpur is 285 kilometers or a 5.5-hour drivenorth of Dhaka.


With Bagdogra as an international airport andregional hub, cross-border road access for foreignvisitors to Bangladesh will facilitate Buddhist circuitsto Paharpur as well as linkages via Dhaka to theMainamati to Pilak, Tripura Key Area. The majorcenter of Siliguri is only 15 kilometers from the

Banglabandh/Changrabandha border. AsianHighway improvements already have beenannounced. Accommodation facilities need to bedeveloped and Paharpur needs to be promoted inorder to appeal to quality regional visitors andadventurous international market segments.


Paharpur monastery and its surrounding sitesare an icon product in the Buddhist art andarchaeological positioning of the SASEC subregion,providing a memorable insight into ancientBuddhist architecture and culture. Adventure andecotourism circuits will open up with linkages to thePRC via the Nathu La, including potentialconnections from the Sundarbans to Darjeeling,Sikkim, and the Nehru Trek to TAR,PRC and Bhutan.As a response to the West Bengal transport corridorsouth from Bagdogra to Kolkata, it is desirable forBangladesh to develop a tourism corridor linkingits ecotourism and Buddhist sites.

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Project Ideas

1. Wayside amenities between Bagdogra andPaharpur to Dhaka. Wayside amenities managedwith local community participation are neededon the Asian Highway between Bagdogra andPaharpur to Dhaka. Border crossing facilitiesfor international visitors are also needed atBanglabandh/Changrabandha. This will createnew tourism flows and benefits that link theNathu La in Sikkim via the Bagdogra hub to

the major attraction of Paharpur.

2. Paharpur Monastery excavations. Part of thePaharpur Monastery is still unexcavated.Further excavation of about 3 to 4 meters willreveal the central shrine and the monastic cells.As a World Heritage Site, the UN Education,Scientific and Cultural Organisation (UNESCO)could assist the Department of Archaeologywith excavations and beautification.

KEY AREA 8: MAINAMAKEY AREA 8: MAINAMAKEY AREA 8: MAINAMAKEY AREA 8: MAINAMAKEY AREA 8: MAINAMATI TO PILAK, TRIPURATI TO PILAK, TRIPURATI TO PILAK, TRIPURATI TO PILAK, TRIPURATI TO PILAK, TRIPURA

Current Patterns

Mainamati in eastern Bangladesh is a Buddhistarchaeological site dating from the 7th to 12th century.Of Mainamati’s 52 sites, 20 have been fully or partlyexcavated; the largest monastery revealed byexcavation is 50 square meters. Mainamati is locatedon the Asian Highway 120 kilometers from Dhaka,and currently attracts more than 100,000 domesticvisitors as well as a few foreign tourists (estimatedat less than 1,000) each year.

Pilak, in the Indian North East state of Tripura,belongs to the same civilization that flourished asthe bedrock of many tribes and creeds—both Hinduand Buddhist. Pilak is fully excavated, and lies about150 km across the border from Mainamati. The hillyroad from Tripura’s capital Agartala is in goodcondition and is 100 kilometers, or a 3-hour drive toPilak. The suggested land route is through Agartala,where there are Bangladesh and India cross-borderfacilities at Akhaura for foreigners, who currently donot require Protected Area Permits (PAPs) to visitTripura. In 2003 the state received 3,198 foreignvisitors, but none were recorded the three previousyears.


Most of the road between Mainamati and Pilakis in good condition. The Government of Bangladeshplans to improve the 20 kilometers stretch fromAkhaura to the border that is in poor condition.Tourist movement between Mainamati and Pilak willthen be easier and faster. The State Government ofTripura is keenly interested in developing tourism.Bangladesh and India may jointly market theMainamati to Pilak Buddhist Circuit to international

tourists. In the longer term, tourism flows couldcombine Paharpur by road with Tripura, therebyincreasing flows in both Bangladesh and India andcreating another Buddhist archaeological andcultural circuit.


The Mainamati to Pilak Key Area will establisha new Buddhist circuit product in SASEC. There isalso ecotourism potential in some unique forests inboth India and Bangladesh that protect theendangered Chashma, or spectacled monkey. Todevelop the Mainamati to Pilak Buddhist circuit,cooperation is needed between the Government ofBangladesh, the Government of India, and the StateGovernment of Tripura. Marketing and promotion isalso needed. Permits and cross-border protocolsneed to be rationalized. The private sector can beencouraged to develop accommodations at Agartala.Some excavated sites at Mainamati are located in acantonment area and need to be opened to thepublic.

Project Ideas

1. Excavations at Mainamati in Bangladesh.Further excavations are needed at Mainamatito reveal the ancient Buddhist sites.

2. Visitor amenities at Mainamati, Bangladesh.Improvements in visitor amenities are needed,including beautification, signage,interpretation, and organization of local guidesat Mainamati, Bangladesh. This will helppreservation, improve the visitor experience,

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and ensure local people share in tourismbenefits.

3. Visitor amenities at Pilak, Tripura India.Improvements in visitor amenities are needed,including beautification, signage,interpretation, and organization of local guides

at Pilak, Tripura, India. A site museum managedby the community could display artifacts andbe the base for an organization of local guides.This will help preservation, improve the visitorexperience, and ensure local people share intourism benefits.

KEY AREA 9: EAST BHUTKEY AREA 9: EAST BHUTKEY AREA 9: EAST BHUTKEY AREA 9: EAST BHUTKEY AREA 9: EAST BHUTAN TO ARUNCHAL PRADESHAN TO ARUNCHAL PRADESHAN TO ARUNCHAL PRADESHAN TO ARUNCHAL PRADESHAN TO ARUNCHAL PRADESH

Current Patterns

Currently there are no visitors permitted to thisremote region except local border traders. Bothsides of the Bhutan and Arunchal Pradesh, Indiaborder are closed to international visitors. TheSakteng Wildlife Sanctuary in Bhutan has beenestablished to protect the legendary “wildsnowman”, or yeti. Currently there is no move toopen this area, although Bhutan’s developmentpriorities include assistance to the east of thecountry, and India’s stated aim is to assist the NorthEast states. There is NGO ecotourism activity inArunchal Pradesh, including projects supported bythe United Nations Development Programme(UNDP) and the MacArthur Foundation.


Although unexplored, this Key Area hasimmense long-term potential as an iconic adventuretrekking destination, enhanced by the snowmansanctuary myth. The area may be accessed fromeither Bhutan or India, and the trek offersspectacular scenic views of the far eastern end ofthe Himalayan range. This is the “wild east”culmination of the Great Himalayan Trail route,linking Trashiyangtse and Trashigang, the easternend of Bhutan’s Snowman trek through Sakteng

Wildlife Sanctuary, to the important BuddhistTawang Monastery and Bomdila in ArunchalPradesh, India.


When border and security conditions allow, thisarea offers new adventure treks, ecotourism andBuddhist circuit possibilities for SASEC. Completelyunexplored as yet, trek routes, maps, guides, andpublicity information need to be prepared inpartnership with resource managers, localauthorities, and the private sector (when borderagreements are in place). Tourism has the potentialto provide supplementary livelihoods to benefitlocal people in these remote areas. The area isfragile, and will need planning and management toensure ecotourism is effectively used as adevelopment tool to protect its natural and culturalresources.

Project Ideas

1. Adventure Trekking. Project yet to be identified,and only relevant when conditions change andmore subregional cooperation takes shape.

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KEY AREA 10: INDIAKEY AREA 10: INDIAKEY AREA 10: INDIAKEY AREA 10: INDIAKEY AREA 10: INDIA’S NOR’S NOR’S NOR’S NOR’S NORTH EAST STTH EAST STTH EAST STTH EAST STTH EAST STAAAAATESTESTESTESTES

Current Trends

The North East is characterized by tremendousunrealized potential. National initiatives recognizethe North East as the major ecotourism product ofIndia. However, the number of foreign tourists iscurrently low and has been decreasing. Constraintsinclude poor information resulting in lack ofawareness, and perceived difficulties with securityand the inner line permit and PAPs needed forArunchal Pradesh, Mizoram, and Nagaland. There isan urgent need for measures to increase the flow oftourists to the region, and to ensure wider dispersalof tourists within the region.

Because of its geographical location, the NorthEast (except Sikkim) is heavily dependant on airaccess. Internal road connectivity is poor, timeconsuming and devoid of tourist facilities or qualityaccommodations. Guwahati has developed as an airhub for the region, with supplementary accessroutes to Nagaland, Mizoram, Tripura and Manipurfrom Kolkata. Tourism flows largely follow thenational circuit, appropriately named theEcotourism Circuit, which comprises Shillong,Guwahati, Kaziranga, Tezpur, Bhalukpung, Tawang,Majuli, Sibsagar, and Kohima.


The North East potentially provides the mostexciting new product opportunities in the SASECsubregion, with the ability to deliver uniqueexperiences in undiscovered and unexploredlandscapes to international markets. Key productsare likely to focus on culture and ethnic diversity(more than 166 tribes), special events and festivals,handicrafts, historical linkages, unspoiled beauty,wildlife, biodiversity hotspots, river cruises, teatourism, and Buddhist attractions. There ispotential for homestay accommodations and a needfor wayside amenities, improved interpretation, anda cohesive ecotourism policy for the region. Futureemphasis is likely to be on capacity building andimproving service quality by strengthening HRDinitiatives and programs to train trainers.

Opening land routes and linkages to theBuddhist heritage of Bangladesh will connectTripura to regional tourist flows. There is an excitingnew potential trek product featuring the Dalai Lama’sescape route from TAR,PRC via Tawang. Sikkim will

benefit from the linkages to Bhutan and Nepal andthe development of the Bagdogra hub. Otherexciting initiatives include opening up land routesalong the Stilwell Road connecting India’s NorthEast to Northern Myanmar, Southern PRC andSoutheast Asia. Establishing trade and commercein the wider region will also boost tourism.


The North East is the premier ecotourismdestination in India. Building on this and Sikkim’ssuccess, and exploiting resources made available by thedevelopment grant from the Government of India,the North East can be developed and marketed in anintegrated manner. This requires building on theaggressive marketing and the “Unexplored Paradise”awareness campaign, supported by the Governmentof India. It also needs organizational linkages to bedeveloped for common action with the private sector.Travel facilitation and overall capacities the regionwill need great improvement if tourist inflows are tobe sustained.

Project Ideas

1. North East Marketing Strategy and Action Plan.The North East Marketing Strategy and ActionPlan with a program of joint marketingactivities for the seven states would determinemarket positioning, individual state branding,and coordinated product development. Anoverall brand can be created as a uniquesustainable ecotourism destination: “India’sProtected North East”. Collateral, salespromotion material, and websites can bedeveloped for a vigorous marketing campaign.The marketing strategy will define targetmarkets most suitable for creating income andemployment in the region. These might includestructured packages, executive holidays,meetings and conferences, and culture andnature holidays.

2. Wayside amenities in the North East. Supportfor the new road developments in the NorthEast with a program of wayside amenities alongroad sections heavily used by tourists. Theseamenities will include information, souvenir

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shops, and sales of local handicrafts andhandlooms, and will be managed with theparticipation of the local communities andprivate sector.

3. Village homestay program in the North East. Aprogram to support and train local people forvillage homestay experience in selected villagesalong identified tourism corridors. This willaddress accommodation constraints, preserve

cultural traditions, and provide a unique NorthEast product, building on its comparativeadvantage of culture, heritage, and ethnicvariety. Likely target markets are both domesticand international visitors.

4. Handicrafts program in the North East.Handicrafts design, production, and marketing,including a program to train trainers andidentify primary markets.

KEY AREA 11: KAKEY AREA 11: KAKEY AREA 11: KAKEY AREA 11: KAKEY AREA 11: KATHMANDU HUBTHMANDU HUBTHMANDU HUBTHMANDU HUBTHMANDU HUB

Current Patterns

Kathmandu is ideally placed to serve the majorecotourism and Buddhist sites of the SASECsubregion; it finds itself, almost inadvertently, as themajor air hub of the SASEC subregion. In additionto being the gateway to Nepal’s trekking, wildlife,and adventure attractions, Kathmandu Valley itselfhas an important Buddhist pilgrimage circuit with15 major sites, two of which have World Heritagestatus. It is a living center of Buddhist learning.Kathmandu is well connected, serving as a regionalhub to Bhutan and Lhasa, as well as linking Dhakaand Kolkata. Flights to Bhairahawa (near Lumbini)in Nepal and Varanasi in India serve the Footstepsof the Lord Buddha circuit. Domestic flights viaBhadrapur and Biratnagar connect Nepal with theIndian tourism centers of Bagdogra, Siliguri,Darjeeling, Kalimpong, and Sikkim.

During the last decade of civil aviationliberalization, numerous small private airlinecompanies began providing services to Nepal’s 32domestic airports. The intensely competitiveenvironment led to compromises in technicalprocedures. The resulting poor aviation safety recordand air accidents in Nepal have raised the concernof the travelling public and the tourism industry.There have been 30 air accidents since 1992,including three foreign airlines and nine helicopters.In 16 of these accidents there were total of 405fatalites.


More regional and international airlines arelikely to operate in Kathmandu in the future. Thereare an increasing number of charter flights from

Japan, and Air China is expanding its services to linkKathmandu with Shanghai, Beijing, and four otherpoints in the PRC. In May 2004 Jet Airways startedflying to Kathmandu from India, and Air Sahara hasannounced similar plans. Several of Nepal’sdomestic airlines (Cosmic, Necon and Air Shangri-la) are planning to operate regional services, addingto international airline seat capacity. The need forflight safety protocols is important if Nepal is tomaintain its integrity as an air hub.

The World Heritage attractions of Kathmanduare currently under the authority of the Departmentof Archaeology and various municipalities.Enforcement of regulations is weak, however, and in2003 Kathmandu was relegated to the UNESCOWorld Heritage Site Endangered List, despitelobbying by the tourism industry. There is a need tocoordinate the management and visitor services ofKathmandu’s living World Heritage Sites to ensuretheir preservation and to safeguard Nepal’s premiercultural tourism attractions.


With Kathmandu as the air hub linking theSASEC subregion’s major ecotourism and Buddhistcircuits, air safety and the confidence of tourists inNepal’s carriers should be improved. South AsianHost training to improve the visitor experience atKathmandu’s international and domestic airterminals is desirable.

Restoring the major World Heritage Siteattractions of Kathmandu Valley to internationalrecognition will support Nepal’s recent branding as,above all, a “culture, traditions, and people”

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destination with “rich ethnic cultures and worldheritage sites still in actual daily use.”3

Project Ideas

1. Air traffic safety project. Air traffic safetytraining and capacity building activities withdomestic airlines and the Civil AviationAuthority Nepal would improve adherence tostandard operating procedures. Investigationscould determine whether air safety in Nepalwould benefit from technical improvements.These might include a second radar station atPhulchoki in the Kathmandu Valley to broadenthe current range, and the installation of Non-Directional Beacons (NDBs) at all airfields—even at VOR stations. (This component mayconveniently fit into ADB Nepal’s Civil AviationImprovement Project. From a tourismperspective it is important).

2. Visitor Services Management Plan for WorldHeritage sites of Kathmandu. Preparation of avisitor Services Management Plan forKathmandu Valley World Heritage sites ofKathmandu: Patan and Bhaktapur DurbarSquares, and Pashupatinath, Bodhnath,Swayambhunath and Changu Narayan (withJBIC). The plan should address overallmanagement issues, visitor amenities, andinterpretation with the objectives of improvingboth residents’ and visitors’ experience, andhaving the sites removed from the UNESCOWorld Heritage Site Endangered List. Theprocess will involve all stakeholders (Nepal’sDepartment of Archaeology, the Ministry ofCulture, Tourism and Civil Aviation, theNational Tourism Board, municipalities, localcommunities, and the tourism private sector).

3 Nepal Tourism Board. 2004. Lumbini Visitors’ Survey Final Draft Report.Kathmandu: Tourism for Rural Poverty Alleviation Program.

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APPENDIX 5

Project NameProject NameProject NameProject NameProject Name ::::: Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits

Loan or TALoan or TALoan or TALoan or TALoan or TA ::::: TA

Project LocationProject LocationProject LocationProject LocationProject Location ::::: SASEC subregion

Country(ies) InvolvedCountry(ies) InvolvedCountry(ies) InvolvedCountry(ies) InvolvedCountry(ies) Involved ::::: Bangladesh, Bhutan, India, and Nepal

Sector/SubsectorSector/SubsectorSector/SubsectorSector/SubsectorSector/Subsector ::::: Tourism / Program to Promote SASEC as a Single Tourist Destination

Background and Rationale:Background and Rationale:Background and Rationale:Background and Rationale:Background and Rationale:

Joint marketing presents the strongest rationale for subregional cooperation in tourism. Between all four NTOsthere i10s a commonly held motive to brand and promote their ecotourism and Buddhist circuit products. It iswidely accepted that joint marketing on these two product themes will produce a whole greater than the sum ofthe parts. Accurate positioning and a strong brand identity for these product themes will make a significantcontribution to subregional tourism growth. Providing accurate information to the world travel industry will helpovercome security concerns in the market place.

Branding and promotion need to be aimed at increasing awareness among the world and regional travelindustries of the ecotourism and Buddhist circuit attractions of the subregion. Marketing activities needto brand the subregion as a premier “Ecotourism Pioneer” and “Buddhist Heartland” destination.Subregional positioning can complement national approaches if NTO’s branding strategies and tourismdevelopment values are taken into consideration.

ObjectivesObjectivesObjectivesObjectivesObjectives:

To use joint resourcing to position South Asia as an ecotourism and Buddhist circuit destination in bothinter- and intra-regional markets.

To improve destination awareness of the subregion, and ultimately to contribute to increased demandand tourism growth, generating employment, investment and other benefits to rural areas.

ScopeScopeScopeScopeScope: This project will position SASEC to the travel trade by:

1. NTO funding of a joint marketing campaign on the two product themes (Buddhist circuits andecotourism);

2. Asking International agencies associated with tourism-related development projects to assist with theFund as a means to increase tourism demand in all parts of SASEC;

3. Seeking participation from industry partners in aspects of the campaign;

4. Echoing “Incredible India” and capitalizing on that campaign’s marketing muscle;

5. Launching the campaign at the SAARC conference scheduled for September 2004;

6. Reaching target industry segments through the established international tour operator networks of theNTOs;

APPENDIX 5: FORMAAPPENDIX 5: FORMAAPPENDIX 5: FORMAAPPENDIX 5: FORMAAPPENDIX 5: FORMAT FOR SUBMITTING PROJECTT FOR SUBMITTING PROJECTT FOR SUBMITTING PROJECTT FOR SUBMITTING PROJECTT FOR SUBMITTING PROJECTIDEAS TIDEAS TIDEAS TIDEAS TIDEAS TO O O O O THE TOURISM WORKING GROUPTHE TOURISM WORKING GROUPTHE TOURISM WORKING GROUPTHE TOURISM WORKING GROUPTHE TOURISM WORKING GROUP

Example 1: Project 1.1

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7. Producing a range of internet-based and normal collateral, such as promotional brochures, posters, and CD ROMssuitable for trade shows and market seminars.

8. The promotion of six sub-themes:

• Trekking in the Himalaya

• Tourism in Ganga-Brahmaputra (especially culture and wildlife)

• Adventure Tourism in South Asia

• Footsteps of the Lord Buddha

• Living Buddhism in the Himalaya

• Buddhist Art and Archaeology in South Asia.

Estimated CostEstimated CostEstimated CostEstimated CostEstimated Cost:

Up to $5 million. At least $100,000 would be required in the SASEC Tourism Marketing Fund in orderto start the campaign.

Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):

An initial contribution of $10,000 will be made by each NTO. The assistance of development partnerswould be sought. The Government of India will underwrite the production of collateral, subject to theNTOs contributing the initial $10,000 and providing suitable content. Later, the TWG would arrive at anon-going funding formula.

Financing Status:Financing Status:Financing Status:Financing Status:Financing Status:

India’s Department of Tourism currently making arrangements for receiving NTO funds.

Proposed Implementation Period/ScheduleProposed Implementation Period/ScheduleProposed Implementation Period/ScheduleProposed Implementation Period/ScheduleProposed Implementation Period/Schedule:

Initial project period June 2004 through to March 2005:

Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:

DOT IndiaMr Amitabh KantJoint Secretary,[email protected]

ADB Contact Division/Person:Mrs. Snimer K. SahniAgriculture, Environment, & Natural Resources Division, [email protected]

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APPENDIX 5

Estimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and Beneficiaries:

South Asia would be positioned as an ecotourism and Buddhist circuit destination in both inter- and intra-regional markets. Destination awareness of the subregion would be improved, resulting in increased demandand tourism growth generating employment, investment, and other benefits to rural areas. Increased regionaltraffic would help cushion downturns in long-haul arrivals. Greater demand would focus private sectorattention on enhancing existing products and investing in new products. Unique aspects and individualdifferences in each country would be emphasized. Success in this project will develop and sustain ownershipof subregional cooperation in tourism by the participating NTOs. Using the “Incredible India” quality and stylewould reinforce its success, strengthen the subregional product image, and add value to the campaign fromIndia’s perspective. Beneficiaries would include the tourism trade of each SASEC country, governmentsthrough increased foreign exchange earnings, and communities that enjoy increased benefits from tourism.

Social and Environmental IssuesSocial and Environmental IssuesSocial and Environmental IssuesSocial and Environmental IssuesSocial and Environmental Issues:

Potential negative impacts would include the perception that tourism uses culture as a commodity.

Priority of Project/TPriority of Project/TPriority of Project/TPriority of Project/TPriority of Project/TA (H/M/L):A (H/M/L):A (H/M/L):A (H/M/L):A (H/M/L):

This is a high priority project.

Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):

Ongoing

Status of Project/TStatus of Project/TStatus of Project/TStatus of Project/TStatus of Project/TA preparationA preparationA preparationA preparationA preparation:

Approved for implementation by the TWG. In early planning phase.

Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):

Not required

Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:

Issues/ConstraintsIssues/ConstraintsIssues/ConstraintsIssues/ConstraintsIssues/Constraints:

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Example 2: Project 4.3

Project NameProject NameProject NameProject NameProject Name ::::: Training for Travel Media

Loan or TALoan or TALoan or TALoan or TALoan or TA ::::: TA

Project LocationProject LocationProject LocationProject LocationProject Location ::::: SASEC subregion

Country(ies) InvolvedCountry(ies) InvolvedCountry(ies) InvolvedCountry(ies) InvolvedCountry(ies) Involved ::::: Bangladesh, Bhutan, India, and Nepal

Sector/SubsectorSector/SubsectorSector/SubsectorSector/SubsectorSector/Subsector ::::: Tourism / Program to Promote SASEC as a Single Tourist Destination

Background and Rationale:Background and Rationale:Background and Rationale:Background and Rationale:Background and Rationale:

SASEC tourism needs an effective industry media. The tourism and travel media plays a vital role in tourism.Industry magazines and newsletters enhance communication within the industry and, crucially, link sellerswith buyers.

Fostering higher standards of journalism is a worthy aim. This project envisages a one-off, customizedtraining course in travel-trade writing for the tourism and travel journalists of the subregion.

ObjectivesObjectivesObjectivesObjectivesObjectives:To build the capability of SASEC’s travel media and, in doing so, contribute to an effective positioning ofSASEC through better media coverage in trade and consumer target markets.

ScopeScopeScopeScopeScope:A one-time, customized training course in travel-trade writing for about 25 tourism and travel journalistsof the subregion would be undertaken.

Estimated CostEstimated CostEstimated CostEstimated CostEstimated Cost:

$50,000

Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):Financing Plan and Financing Arrangement (Public/Private):

A sponsor will be sought. The TWG has asked ADB to consider a contribution from the proposed regionalTA on HRD in tourism. A course charge per participant will cover the costs of the venue.

Financing Status:Financing Status:Financing Status:Financing Status:Financing Status:

Funding is sought.

Proposed Implementation PProposed Implementation PProposed Implementation PProposed Implementation PProposed Implementation Period/Scheduleeriod/Scheduleeriod/Scheduleeriod/Scheduleeriod/Schedule:

Nepal Tourism Board will report to the NTOs with an implementation plan, including a specific fundingrequest to ADB for possible inclusion in the forthcoming regional TA for SASEC on HRD in tourism.

Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:Executing/Implementation Agency and Contact Persons:

Nepal Tourism BoardNepal Tourism BoardNepal Tourism BoardNepal Tourism BoardNepal Tourism BoardMr. Tek Bahadur DangiCEO of Nepal Tourism [email protected]

ADB Contact Division/Person:ADB Contact Division/Person:ADB Contact Division/Person:ADB Contact Division/Person:ADB Contact Division/Person:

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APPENDIX 5

Estimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and BeneficiariesEstimated Benefits and Beneficiaries:

If successful, this project would be a confidence boost for TWG. It would make a direct contribution to animportant aspect of tourism in the subregion, improving the skills of travel writers and focusing other mediaon travel issues. It would also bring the activities of TWG and its development partners to the attention of themedia. The longer-term benefits stem from the travel industry, potential visitors, and current visitors beingbetter informed by the travel media.

Social and Environmental IssuesSocial and Environmental IssuesSocial and Environmental IssuesSocial and Environmental IssuesSocial and Environmental Issues:

All regions, including lesser-known, remote rural areas stand to benefit from more effective travelmedia. The communication of tourism opportunities and issues to the travel trade and consumers willhelp to spread the benefits of tourism.

Priority of Project/TPriority of Project/TPriority of Project/TPriority of Project/TPriority of Project/TA (H/M/L):A (H/M/L):A (H/M/L):A (H/M/L):A (H/M/L):

This is a medium priority project.

Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):Project Status (Proposed/Ongoing/Completed):

Proposed

Status of Project/TStatus of Project/TStatus of Project/TStatus of Project/TStatus of Project/TA preparationA preparationA preparationA preparationA preparation:

Concept stage.

Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):Pre-feasibility Study (Completed/Required):

Not required.

Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:Follow-up Actions Required:

After the course, the TWG should ask NTB to maintain regular links with participants to encourage andfacilitate their ongoing interest in the activities of TWG.

Issues/ConstraintsIssues/ConstraintsIssues/ConstraintsIssues/ConstraintsIssues/Constraints:

To ensure effective training, 25 is seen as an appropriate number of participants. If this course in successful,future courses may be designed based on the lessons learned.

Example 2: Project 4.3 (cont’d.)

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APPENDIX 6: PAPPENDIX 6: PAPPENDIX 6: PAPPENDIX 6: PAPPENDIX 6: PARTICIPARTICIPARTICIPARTICIPARTICIPANTS IN THE PLANNING PROCESSANTS IN THE PLANNING PROCESSANTS IN THE PLANNING PROCESSANTS IN THE PLANNING PROCESSANTS IN THE PLANNING PROCESS

NAME ORGANIZATION DESIGNATION

BANGLADESH

Mr. Mohammed Nasiruddin Ministry of Civil Aviation and Tourism State Minister

Mr. BMM Mozharul Huq Ministry of Civil Aviation and Tourism Secretary

Mr. Humayun Kabir Ministry of Civil Aviation and Tourism Joint Secretary

Mr. Harunur Rashid Bhuyan Bangladesh Parjatan Corporation (BPC) Former Chairman

Dr. MD Mahbubur Rahman Bangladesh Parjatan Corporation Chairman

Mr. Shahab Ullah Bangladesh Parjatan Corporation Director Planning

Mr. Mohammed Ahsanullah Bangladesh Parjatan Corporation General ManagerCommercial Division

Mr. MJ Jahangir Bangladesh Parjatan Corporation General ManagerAdministration

Mr. Ahmed Kamal Bangladesh Parjatan Corporation General Manager (DFO)

Mr. Md Khalilur Rahman Bangladesh Parjatan Corporation Manager PR

Maj. Keramot Ali Khan Bangladesh Parjatan Corporation General Manager

Planning Training andStatistics Div

Mr. Baizid Ashraf Bangladesh Parjatan Corporation Deputy Manager

Mr. Habib Ullah Bangladesh Parjatan Corporation Tour Division

Mr. Mohamad Ehsaneed Kabir Bangladesh Parjatan Corporation IT Executive Officer

Mr. Ziaul Haque Howlader Bangladesh Parjatan Corporation Executive Officer(Planning)

Mr. Parvez A.Chowdhury Bangladesh Parjatan Corporation Deputy Manager(Commercial)

Mr. Moniuddin Babar Bangladesh Parjatan Corporation Executive Officer(Training)

Mrs. Shahida Begum Bangladesh Parjatan Corporation Manager Training

Mr. Jamiul Ahmed Tourism Developers Assoc of President

Bangladesh

Mr. Basudev Bhattecharjee National Hotel and Tourism Principal

Training Institute

Mrs. Rokey Haider National Hotel and Tourism Manager

Training Institute

Mr. Khorshed Ali Mollah Federation of Bangladesh Chambers of Dir & Chairman Standing

Commerce and Industry Committee on Hotels &Tourism

Mr. Rezaul Karim Khan ADB Bangladesh Resident Mission Senior Economist

Mr. Faridul Haque Tour Operators Assoc. of Bangladesh President / MD Tour(TOAB) Planners

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APPENDIX 6

Mr. Taufiq Rahman Tour Operators Association of Bangladesh General Secretary

Mr. M.A. Quader Tour Operators Association of Bangladesh Vice President

Mr. Sadique Ahsan Bang. Hotel & Guest House Owners Pres Chairman Hotel deAssoc Crystal Garden

Mr. A. Gafur American Chamber of Commerce Executive Director

and Industry

Mr. Raquib Siddiqui Bangladesh Monitor Editor

Mr. Ali Umam Bangladesh Television Director InternationalProgramme Affairs

Mr. Grant Gaskin Pan Pacific Sonargoan Hotel General Manager

Mr. Jishu Tarafder Pan Pacific Sonargoan Hotel Sales Manager

Mr. Iftakhar Alam Bhuiyan Discovery Tours and Logistics Executive

Mrs. Afsana Kamal Sheltech Consultants Director

Mr. Abdullah M Hasan Bangladesh Monitor Managing Editor

Mr. Shahabuddin Ahmad Travel World and PATA Bangladesh Chapter Editor and Advisor

Mr. Jahiduzzaman Faruk The Daily Arthoniti Editor

Mr. Hafeezuddin Ahmed International Finance Corporation SEDF Director

Mr. Anil Sinha International Finance Corporation SEDF Director

Mr. Peter Michener Sour Asia Enterprise Dev. Facility (SEDF) Senior Advisor

BHUTAN

HE Lyonpo Yeshey Zimba Ministry of Trade and Industry Minister

Dasho Karma Dorjee Ministry of Trade and Industry Secretary

Dasho Penden Wangchuk Ministry of Home and Cultural Affairs Secretary

Aum Neten Zangmo Ministry of Foreign Affairs Secretary

Dasho Sangay Thinley Ministry of Agriculture Secretary

Dasho Dr Sangay Thinley Ministry of Health Secretary

Dasho Pema Thinley Ministry of Education SecretaryDasho Tashi Phuntsho Ministry of Information & Communications Secretary

Dasho Jigme Zangmo National Assembly Secretariat Secretary

Dasho Tshering Dorji Ministry of Works & Human Settlement Secretary

Amb Dasho Lhatu Wangchuk Department of Tourism Director General

Mr. Thuji Nadik Department of Tourism Jt Director Planning

Mr. Chhimmey Pem Department of Tourism Jt Director Marketing

and Promotion

Mr. Kunzang Norbu Department of Tourism Jt Director Services

Mr. Rinzin Jamtsho Department of Tourism Hotel Development

Ms. Tashi Pelzom Department of Tourism PA to DG


BANGLADESH (cont.d)

210


Mr. Sonam Wangdi Planning and Policy Division Head

Ministry of Trade & Industry

Ms. Karma C Tshering Planning and Policy Divivision Planning Officer

Ministry of Trade & Industry

Dasho Ugen Tshechup Dorji Association of Bhutan Tour Operators (ABTO) President

Mr. Sonam Dorji ABTO Secretary General

Mr. Tenzin Namgyel ABTO Assistant Sec General

Mr. Rinzin Ongdra ABTO Vice President / Yu DrukTours

Mr. Heshey Tshering ABTO Executive Member /Bhutan Heritage

Mr. Wangchuk Wangdi ABTO Exec. Member /ThunderDragon Tours

Mr. Nim Gyeltshen ABTO Executive Member / EthoMetho

Mr. Tshering Jamtsho ABTO Executive Member / SkyTravel

Mr. Chimmi Tobgay ABTO Executive Member / Beyul

Mr. Kinley Gyeltshen ABTO Executive Member /Gangri

Mr. Karma Lotay ABTO Executive Member / MDYangphel

Ms. Sonam Ongmo ABTO Executive Member / YuDruk Tours

Dr. Lam Dorji Royal Society Protection of Nature (RSPN) Executive Director

Ms. Rebecca Pradhan RSPN Representative

HE Amb Kanwar S. Jasrotia Embassy of India Ambassador

HE Amb Md Enamul Kabir Embassy of Bangladesh Ambassador

Ms. Aum Dago Beda Etho Metho Tours Managing Director

Ms. Phub Zam Yarkey Group CEO

Mr. Karma Tsering Nature Conservation Division Head

Mr. Karma Jimba Bhutan Consultants and Research Principal

Ashi Khendum Dorji Chhundu Tours Managing Director

Mr. Karma Nyedrup National Environment Commission Head EA Section

Ms. Yanki Tobgyel Wangchuk Ministry of Finance Finance Secretary

Mr. Daw Tenzin Royal Monetary Authority of Bhutan Managing Director

Mr. Nawang Gyetse Bhutan Development Finance Corporation Executive Director

Mr. Thinley Dorji Hotel & Tourism Man. Training Institute Director

Mr. Tandin Jamso Druk Air Royal Bhutan Airlines Deputy ManagingDirector


BHUTAN (cont.d)

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APPENDIX 6

Ms. Renata Lok Dessallien United Nations Development Programmme Resident Representative

(UNDP)

Ms. Dierdre Boyd UNDP Deputy ResidentRepresentative

Mr. Jigme Tobgyal UNDP Environment Associate

Ms. Marie-Christine Austrian Coordination Office for Counselor and Head of

Weinberger Development Cooperation Office

Ms. Susanne Kraus-Winkler Austrian Coordination Office Consultant

Mr. Martin Uitz Austrian Tourism Consultants Senior Partner

Mr. Martin Zeppezauer Austrian Tourism Consultants Masterplan Consultant

Ms. Cecilia Keizer Netherlands Development Agency (SNV) Country Director

Mr. Kasper Tideman SNV Private SectorDevelopment Advisor

Mr. Robert Doff SNV Marketing Specialist

Ms. Nguyen Thi Kieu Vien SNV Vietnam Program Manager

Mr. Sonam Namgyal Director Bhutan Trust Fund

Mr Kinzang Namgay World Wildlife Fund (WWF) Country Representative

Mr. Chadho Tenzin World Wildlife Fund Senior Programme Officer

Mr. Phuntsho Wangdi Dept of Roads Min of Works & Human Set Director

Mr. Chencho Tshering Olathang Hotel General Manager

Dasho Tobgay & Gangtay Palace Hotel Owners Managers

Ms Genzing Zam Dorji

Mr. Robin Wangdi Thimpu Tourism Lecturer

Mr. Sonam Tenzing Excel Consulting Consultant

Mr. Stuart Campbell Uma Resort Paro General Manager

Mr.. John Reed Aman Resorts Bhutan General Manager

Ms Sue Reitz Aman Resorts Bhutan Project Manager

INDIA

NEW DELHI

Ms. Rathi Vinay Jha Ministry of Tourism Secretary

Mr. Amitabh Kant Dept of Tourism, Ministry of Tourism Joint Secretary

Dr. Venu V Dept of Tourism, Ministry of Tourism Deputy Secretary

Mr. D.D. Mathur Ministry of Tourism and Culture Deputy Director, MarketResearch Div

Mr. Navin Berry SATTE and Cross Section Publications Managing Director

Mr. M. Narayanan Tourism Finance Corporation of India Ltd Managing Director

Mr. Rajendra Sharma Tourism Finance Corporation of India Ltd General Manager


BHUTAN (cont.d)

212



NEW DELHI (cont.d)

Mr Anoop Bali Tourism Finance Corporation of India Ltd Asst. General Manager

Mr. Akio Saito Japan Bank for International Coop (JBIC) Senior Representative

M.r P. Rajasekharan Japan Bank for International Coop. (JBIC) Project Officer

Mr. Sudipto Mundle ADB India Resident Mission Chief Econ India & DepCountry Dir

Ms. Kavita Iyengar ADB India Resident Mission Senior ConsultantRegional Development

Mr. V.K.Sexena Industrial Development Bank of India Chief General Manager,North Zone

Dr. Charan D. Wadhva Center for Policy Research President and ChiefExecutive

Ms. Ranjana Khanna Fed. of Ind Chambers of Comm. & Industry Director FICCI

Mr. M.I. Jain India Tourism Development Corp (ITDC) Representative

Ms. Rohita Jaidka Air India Com. Man. Tourism andBusiness Dev.

Ms. Madhu Mathur Top Travels Manager

Mr. SM Khanna Everett Travel Manager

Mr. Inder Sharma Select Holiday Resorts Chairman

Mr. OP Ahuja Holiday Maker Pvt Ltd Managing Director

Mr. Ashok Bhatnagar PATA India Chapter Executive Director

Mrs. S. Kumar Travel Mate India Pvt Ltd Managing Director

Mr. Ravi Bhoothalingam Kuoni Travel India Pvt Ltd Board Member

Mr. Ravi Duggal Sita Incoming Services Head

Mr. Sandeep Dayal Sita Charters Vice President

Mr. Varun Gupta Sita Mice Vice President

Mr. Ratan Kr Paul Trav Talk Senior Assistant Editor

Mr. Vijai Lal The Judges Court, Himachal Pradesh Owner

Mr. Lajpat Rai Lotus Trans Travels Pvt Ltd President

Mr. I. Majumder Ashok Travels and Tours General Manager

Mr. Mritunjoy Kumar Verma Ashok Travels and Tours Asst. Manager

Mr. Manoj Dhawan Ashok Travels and Tours Executive Tours

Mr. Kumar JPS Associates Ltd Director

Mr. Amit Jain JPS Associates Ltd Consultant

Mr. S. Kumar Techno Management Services Member

Mr. Nishanat Sirohi Grand Hotel Manager ConventionSales

Mr. Benoy K Behl New Delhi Art Historian

Mr. Sudir Sahi UNDP Rural Tourism Programme Consultant Tourism &Nagaland Environ. Services

Mr. Toby Sinclair Global Tiger Patrol Trustee

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APPENDIX 6

Ms. Vira Mehta Business and Tourist Services General Manager

Ms. Caroline MacDonald New Zealand High Commission High Commissioner

Mr. Ian Goodger New Zealand High Commission First Secretary

Ms. Sonia Khanna Hotel Uppal’s Orchid H.R. Manager

Mr. Hiranya Bharadwaj Trav Talk Reporter

Mr. T Namgyal Windhorse Expeditions, India Manager Operations

Mr. Vikram Sharma Cross Section Assistant Editor

Mrs. Amrita Talwar Pioneer Darpan Trainee Darpan

Mr. Arijit Hajra Confederation of Indian Industry Executive Officer

Mr. N.C. Joshi Press Information Bureau Representative

Ms. Lara Kharkongor Government of Meghalaya Representative

Mrs. M Roy Confederation of Indian Industry Deputy Director General

Mr. Rajesh Mudgill Planet India Travels Managing Director

Mr Arun Anand IATO and Midtown Travels Managing Director / Hon.Treasurer

Mr. Lally Mathews IATO and Vacations Travels and Tours Director Operations

Mr. Sunirmol Ghosh IATO and Indo Asia Tours Pvt. Representative

Mr. Vijay Thakur IATO Vice President

Mr. KK Basu IATO and Ideas Cell Tours General Manager

Mr. N Bhattacharji Hotel Association Of India Representative

Mr. Rajesh Agrawal UNESCO Expert Consultant

Mr. Anoop Sehan China Airlines Marketing Manager

Mr. MD Kapoor Rai University Dean

Mr. Sarabjit Singh ITTA President

Mr. Harkripal Singh Travel Agents Association of India Chief Representative

Mr. Subash Verma Travel Plus Managing Director

Mr. Balaji Arunachalam Tourism Finance Corporation of India (TFCI) Assistant Manager

Ms. Avantika Dhar TFCI Manager

Mr. Gautam Chadha Journeymart Chairman

Mr. Rajbir S. Mayal TAAI President

Mr. Anil. K. Bhandari Travel House Representative

Mr. Gautam Khanna IHHR Hospitality Chairman

Mr. Sudripto Roy IAS Government of H.P Principal ResidentCommissioner

MN Chopra Indian Railway Catering and Tourism Corp. Managing Director

Mr. Mohan P. Dhillon Travels and Tours Cab Service Representative

Mr. P C Pandey FH and RAI Assistant Sec. General(Research)

Mr. Rajiv Sikri Ministry of External Affairs Secretary


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214


Mr. Jayant Bhuyan ASSOCHAM Secretary General

Mr. V. S. Raghave Hotel Uppal’s Orchid Security Manager

Mr. S. K. Mishra INTACH Chairman

KOLKATA

Mr. RK Tripathy Tourism Department, Govt. of West Bengal Principal Secretary

Mr. MK Sengupta Tourism Department, Govt. of West Bengal Director and Jt. Secretary

Mr. SN Bhattacharjee West Bengal Tourism Development Corp. Managing Director

Ms. Alka Kohli Govt of India Tourism Office, Kolkata Regional Director

Mr. BN Mishra Govt. of Orissa Tourist Office, Kolkata Assistant Director

Mr. TK Sinha Govt. of Bihar Tourism Office, Kolkata Tourist Officer

Mr. R. Prabakaran Govt of Tamil Nadu Tourism Office, Kolkata Tourist Officer

Ms. LH Thangi Mannen Tourism Department Govt of Nagaland Secretary

Mr. Mrinal Chatterjee Project Lifeline Sundarbans Project Director

Mr. Harmeet Singh Bajaj Sunderban Tiger Camp Manager

Dr. Andrew Hall British Deputy High Commissioner British Dep HighCommissioner to India

Mr. Manoj Saraf Travel Agents Association of India Hon Secretary EasternRegion

Mr. MS.Balakrishnan Indian Airlines Kolkata Regional Director

Ms. Sushma Dutt Air India Asst. Manager Commercial

Mr. BP Swain S.E. Railways Kolkata Chief Commercial Manager

Mr. Ravi Bhatia Nathan Wetland Ecopark and Water Sports General Manager

Mr. Subir Sengupta Khorla Coop. Ecotourism Society, Kolkata Representative

Mr. Ashim Mukherjee Balmer Lawrie Co Ltd Branch Manager

Mr. SK Mitra Travair Connections, Kolkata Executive Director

Mr. Samar Roy Safeway Travels Proprietor

Mrs. C. Paljan Sikkim Tourism, Kolkata Tourist Officer

Mr. Soumen Biswas SAFAR International.Kolkata Tourism Advisor

Mr. Arijit Mazumdar Creative Research Group Kolkata Principal Consultant

Mr. TK Basak Creative Research Group Kolkata Senior Consulant

Mr. Kamal Gupta Assoc. of Tourism Service Providers of Bengal Secretary

Mr. Abhijit Dhar M.P Tourism, Kolkata Tourist Officer

Dr. Shyamal K. Chakravarty Indian Museum, Kolkata Director

Mr. A. Bengian Arunachal Pradesh Tourism, Kolkata PRO

Mr. Swapan K Choudhury Eastern Railways, Kolkata Divisional Manager

Mr. Choudhury Hotel and Restaurants Assoc of Eastern India Representative

Ms. Aditi Bose Mitra Swosti Plaza, Bhubaneswar, Orissa Manager


NEW DELHI (cont.d)

215

APPENDIX 6

Mr. Vijesh Marwa Mercury Travels Ltd. Kolkata Branch Manager

Mr. Sanjay Manda The Telegraph, Kolkata Reporter

Ms. Uttara Gangopadhyay Kolkata Journalist and tourism writer

Mr. SP Saha The Ashok Group Deputy General Manager

Mr. Praveen Chawla Hyatt Regency General Manager

SIKKIM and SILIGURI / BAGDOGRA

Mr. SW Tenzing Government of Sikkim Chief Secretary

Mr. Karma Gyatso Dept of Tourism, Government of Sikkim Principal Secretary cumMD

Mr. PK Dong Sikkim Tourism Development Corporation Executive Director

Mr. Atul Kaura Chumbi Residency Manager

Mr. Surendra K Pradhan Siniolchu Group Managing Director

Mr. PD Rai State Planning Commission Government Member & Chairmanof Sikkim ECOSS

Mr. Karma Nidup Bhutia Finance Div. Income Tax & Commercial Tax Special Sec. & ViceChairman ECOSS

Mr. Renzino Lepcha Ecotourism & Con Soc of Sikkim (ECOSS) Executive Secretary

Mr. RP Gurung ECOSS Treasurer

Ms. Sarikah Atreya ECOSS & “Now!” Magazine Correspondent

Mr. Peter Lepcha ECOSS Member

Ms. Bidhya Pradhan ECOSS Member

Ms. Christine Langstich ECOSS Volunteer

Mr. Sherab Lepcha Dzongu Ecotourism Committee General Secretary

Mr. Robin Gurung Envir Info. System for Ecotourism (ENVIS) Representative

Mr. Jigme Bhutia ENVIS Department of Science & Technology Representative

Mr. Paul Karma Rai Kehedi Ecotourism & Ecodev Prom (KEEP) Vice President

Mr. Ashok Rai KEEP Member

Mr. Loday Gaungyalpa Sikkim Development Foundation (SDF) Executive Member

Mr. Ganden Lachungpa SDF & Travel Agents Assoc Sikkim (TAAS) Executive Member

M. BB Rai Voluntary Health Assoc of Sikkim (VHAS) Former Director

Mr. Sandeep Tambe Mountain Institute & Indian Forest Service Project Manager

Mr .Ashwin Oberoi Sikkim Hotel and Restaurant Assoc (SHRA) Vice President

Mr. Rajesh Lakhotia SHRA Former Pres and DirHotel Tashi Delek

Mr. ST Wangdi SHRA Former Gen Sec, MDHotel Rendevous

Mr. Alok Raj Pradhan SHRA and Lions Club of Gangtok Immediate Past President

Mr. Raju Khati New Horison NE Travel Magazine Representative


KOLKATA (cont.d)

216



SIKKIM and SILIGURI / BAGDOGRA (cont.d)

Mr Naresh Tamang SCE Publications Representative

Ms. Dawa Lepcha Dzongu Ecotourism Project Member

Mr. BR Lama Norbu Ghang Resort, Pelling, Bhutan General Manager

Mr. Paras Chettri Norbu Ghang Resort, Pelling, Bhutan Accountant

Mr. Pema Gyaltzen Bhutia Khangchendzonga Conservation Comm General Secretary

(KCC)

Mr. Kinzong Bhutia KCC Member

Ms. Tshering Uden Bhutia KCC Member and YuksomVillage Head

Mr. Chewang Bhutia KCC Member

Mr. Ugyen Tempa KCC Member

Mr. Hirak Joyoti Maitra Sinclairs Hotel Siliguri General Manager

Mr. Tirtharup Biswas Sinclairs Hotel Siliguri Assistant Manager F&B

Dr. SK Bajpayee NHPC Ltd Teesta Hydro Electric Project Environmental Officer

Ms. Lakshmi Jorden Jet Airways Bagdogra Station Manager

Mr. DT Lepcha Regional Tourist Bureau Govt of West Bengal Deputy Director

Mr. Subrata Sengupta West Bengal Tourism Development Corp Deputy General ManagerNorth

Mr. Deepak Gupta Eastern Him Travel & Tour Operators Assoc Coordinator

Mr. Samrat Sanyal Eastern Him Travel and Tour Operators Assoc Secretary

Ms. Abhaya Bose MCC School Principal

Mr. Subratim Raj Basu Association for Conservation and Tourism Vice President

Mr. Neelkamal Chhetri Neel Consulting Consultant

Mr. Dorjee Pema Bhutia Ashoka Trust for Reseach Ecology & Environ. Field Officer

Dr. MS Faning Kalimpong Horticulture Society President

Mr. Amode Yonzone Hotel & Restaurant Assoc of Kalimpong President and MDKalimpong Park Hotel

Dr. RB Bhujel Kalimpong College Reader in Botany

Mr. Kankan Roy Siliguri College Lecturer

Dr. Jeta Sankityayana Dept of Economics North Bengal University Reader in Economics

Dr. Maitreyee Choudhury Center for Him Studies North Bengal Reader in Geography

University

Mr. Partha Guha NESociety for Protection of Nature (NESPON) Member

Mr. Achintam Bardham Exotic Voyager Partner

Mr. Bimal Gazmer Darjeeling Gurkha Hill Council Area Manager Kalimpong

Tourism Dept

Mr. Roshan Rai Darjeeling Ladenla Road Prerna Program Officer

Mr. Ajoy Edwards Glenary’s Darjeeling Managing Partner

Mr. DR Chhetri Darjeeling Government Cottage Botanist

217

APPENDIX 6

Mr. Samir Sharma Darjeeling Initiative Coordinator

Mr. Harish Mukhia WWF India Project SERVE Darjeeling Coordinator

Mr. Jon Miceler Inner Asian Conservation Exec Dir & Dir HighasiaArunachal Pradesh Expl MtnTravel

Ms. Anandha The Telegraph Correspondent

Mr. Subhendu Ray The Statesman Senior Reporter

Mr. Animesh Kumar Bagdogra Airport Assistant Manager

NEPAL

Mr. Lova Kumar Devkota Ministry of Culture Tourism & Civil Aviation Secretary

(MOCTCA)

Mr. Shankar Prasad Koirala MOCTCA Jt Sec Tourism IndustryDivision

Mr. Birendra Kumar Singh MOCTCA Under Sec. ASA / ICAOAirlines Ops

Mrs. Riddhi Baba Pradhan MoCTCA Former Secretary

Mr. Devendra Nath Gongal MoCTCA Former Jt Sec ADBprogram

Mr. Tek Bahadur Dangi Nepal Tourism Board (NTB) CEO

Mr. Subash Nirola Nepal Tourism Board Director TourismProducts & Resources

Ms. Nandini Lahe-Thapa Nepal Tourism Board Dir. Tourism Marketing &Promotion

Mr. Neil Curtis Nepal Tourism Board Tourism Research &Strategic Planning

Mr. Robert Travers Nepal Tourism Board / TRPAP Marketing Advisor

Ms. Rojee Kattel Nepal Tourism Board Media Consultant

Mr. Sarad Pradhan Nepal Tourism Board Media Consultant - TourismMr. Hikmat Singh Ayer Nepal Tourism Board Man.Tourism Product &

Resource Dev.

Mr. Aditya Baral Nepal Tourism Board Manager PR and Publicity

Mr. Soji Kitano Nepal Tourism Board JICA Tourism Volunteer

Mr. Lila B. Baniya Nepal Tourism Board Manager

Mr. Kalyan Bhandari Nepal Tourism Board Officer TourismStandards

Mr. Rabi Jung Pandey Tourism for Rural Poverty Alleviation Project Country Director

(TRPAP)

Ms. Brigitte Nitsch TRPAP Village Tourism Advisor

Mr. Dechen Sherpa TRPAP Gender Specialist


SIKKIM and SILIGURI / BAGDOGRA (cont.d)

218



NEPAL (cont.d)

Mr. Mingma Norbu Sherpa TRPAP Environment Specialist

Mr. Chet Nath Kharel TRPAP Monitoring andEvaluation Specialist

Dr. Sultan Hafeez Rahman ADB Nepal Resident Mission Country Director

Mr. Sungsup Ra ADB Nepal Resident Mission Senior Country ProgramSpecialist

Mr. Laurent Chazee ADB Nepal Resident Mission Agriculture and RuralDev. Specialist

Dr. Binod Karmacharya Asian Development Bank SASEC Senior ProjectAnalyst

Ms. Snimer K Sahni Asian Development Bank Manila Senior Project Economist

Mr. Steve Tabor Asian Development Bank Consultant

Dr. Shanka Sharma National Planning Commission Vice Chairman

Mr. Matthew Kahane United Nations Development Programme Resident Coordinator

(UNDP)

Ms. Lisa Singh UNDP Senior Program Officer

Mr. Vijaya Singh UNDP Program Officer

Ms. Mangola Pradhan UNDP Program Officer

Dr. Gabriel Campbell ICIMOD Director

Dr. Eklabya Sharma ICIMOD Program Manager NaturalResource Man.

Mr. Nakul Chettri ICIMOD Regional Off TransboundaryBiodiversity

Ms. Srabani Roy ICIMOD Program & Project Dev.Specialist PPDU

Ms. Alka Sabharwal ICIMOD Coordinator Ecotourism

Dr. Kamal Banskota ICIMOD Snr Resource Economist

Mr. Pradeep Mool ICIMOD Remote Sensing Analyst

Mr. Kesang Wangdi SAARC Director Bhutan

Mr. Masud Bin Momen SAARC Director Bangladesh

Mr. Rajiv Chander SAARC Director India

Mr. Pradhumna Shah SAARC Director Nepal

Mr. Amjad Hussein Sial SAARC Director Pakistan

Mr. CAHM Wijeratne SAARC Director Sri Lanka

Mr. Sailendra Thakali DFID Nepal Senior Program Officer

Mr. Prabin Bahadur Panday PATA Nepal Chapter Chairman

Mrs. Ambika Shrestha NTB, SKAL International and Dwarikas Hotel Board Member

Mr. Martin Lama Thai International Airways Manager Nepal

Mr. MG Maleku Department of Roads Director General

Mr. Mohan Prasad Khanal Royal Nepal Airlines Managing Director

219

APPENDIX 6

Mr. Raju Bahadur KC Royal Nepal Airlines Director Marketing

Col. Narayan Singh Pun Karnali Helicopters Chairman

Mr. Jan De Witte SNV Netherlands Development Assistance Head of Office &Honorary Consul

Ms. Srijana Rana SNV Manager Private SectorDivision

Mr. John Hummel SNV Nepal and Bhutan Senior Tourism Advisor

Mr. Sun Heping Embassy of the People’s Republic of China Ambassador

Ma Yingchen Embassy of the People’s Republic of China Second Secretary

Dr. Steven Tabor Economic Management Services Netherlands ADB Advisor

Mr. Megh Ale Nepal River Conservation Trust Founder President

Dr. Mahesh Baskota IUCN Director

Mr. Brian Peniston The Mountain Institute Director

Mr. Lhakpa Norbu Sherpa The Mountain Institute Director

Mr. Ang Rita Sherpa The Mountain Institute Senior Program Manager

Ms. Jyoti RM Kaphle Royal Nepal Academy Representative

Ms. Renchin Yonzan Eco Himal Advisor

Mr. Prakash Poudel Envir & Nat. Res. Conservation Campaign Executive Director

Mr. Dilendra Raj Shrestha Restaurant and Bar Assoc of Nepal (REBAN) President

Mr. Narendra Man Singh REBAN Member

Mr. V. Gyanendra TURGAN Tour Guides Association President

Mr. Bikash Lohani Rastriya Samachar Samiti (RSS) Reporter

Mr. Sanjaya Neupane Kantipur Publications Sub Editor BusinessDepartment

Mr. Dhana Pradhan MD Publishing inc. Himalayan Travel Trade Managing Director

Mr. Nipendra Bantawa Kantipur TV Reporter

Mr. R. Timilsina Kantipur TV Reporter

Mrs. Angur Baba Joshi Taragaon Development Board Chairperson

Ms. S. S. Thapa Taragaon Development Board Manager

Mr. Ghanashyam Dhungel Taragaon Development Board Assistant Manager

Mr. Ananda Ghimire Travel and Tourism Teacher Teacher

Mr. Basant Adhikari Forum for Sustainable Development Nepal Executive Member

Mr. Upendra Karki Forum for Sustainable Development Nepal Executive Member

Mr. Anup Ranjan Bhattarai Nepal China Executive Council Member

Mr. Shiva Rajbhandari METCON Consultants Managing Director

Dr. Bhuban Bajracharya METCON Consultants Director

Mr. Omkar Prasad Gauchan Lumbini Development Trust President

Mr. D. N. Tiwari Bhaktapur Monument Maintenance Office President


NEPAL (cont.d)

220


Mr. Neel Tamrakar Bhaktapur Tourism Development President

Committee

Mr. Bhim Nepal Department of Archaeology / Director

Patan Museum

Mr. Mandakini Shrestha Patan Durbar Museum Manager

Mr. Manoj Raj Upadhaya Patan Tourism Development Organization Consultant

Ms. Jharna Joshi Patan Tourism Development Organization Conservation Architect

Ms. Meena Joshi King Mahendra Trust for Nature Program Officer

Conservation

Mr. Rajendra Bista Tourist Police Inspector

Mrs. Meena Khanal Nepal Academy of Tourism & Hotel Man Director

Mr. Samir Thapa Silver Mountain School of Hotel Principal

Management

Mrs. Chhaya Sharma Nepal College of Travel & Tourism Man. Principal

Mr. Arjun Chokhal New Hotel Floride Director

Mr. Karna Sakya Kathmandu Guest House Group Chairman

Mr. Siddhant Pandey Trinal Finance Management Managing Director

Mr. Robin Marston Skal International Club of Nepal Member

Mr. Marcus Cotton Tiger Mountain Pokhara Lodge Managing Director

Ms. Carolyn Syangbo Durbar Associates Managing Director

Mr. Raju Singh Trekking Agents Association of Nepal Executive Director

Mr .Bandi Neema Sherpa Trekking Agents Association of Nepal First Vice- President

FOURTH TWG

Mr. Masaaki Nagata Asian Development Bank, Manila Head, Regional CooperationTeam & Principal ProgramsSpecialist OperationsCoordination Division

Ms. Ma. Theresa Abaquita- Asian Development Bank, Manila SASEC Senior Advisor

Bugayong

Ms. Cherry Ann Santos Asian Development Bank, Manila SASEC Senior Project Analyst

Ms. Lourdes Serrano-Magaoay Asian Development Bank, Manila SASEC Project Assistant

Ms. Montira Horayangura UNESCO, Bangkok Project Coordinator

Ms. Himalchuli Gurung UNESCO, Kathmandu Program Officer

Ms. Vanessa Satur World Tourism Organization, Madrid Dept of TechnicalCooperation

Mr. John Moon UNESCAP Chief Transport Policy &Tourism Sect.

Ms. Montira Horayangura UNESCO Project Coordinator


NEPAL (cont.d)

221

APPENDIX 7

APPENDIX 7: DOCUMENTS CONSULAPPENDIX 7: DOCUMENTS CONSULAPPENDIX 7: DOCUMENTS CONSULAPPENDIX 7: DOCUMENTS CONSULAPPENDIX 7: DOCUMENTS CONSULTEDTEDTEDTEDTED

ACT Association for Conservation and TourismCommunity. 2002. Tourism Initiatives of East andNorth East India. Siliguri.

ADB. 2004. Asian Development Outlook. Manila.ADB. 2003. Key Indicators. Manila.ADB. 2002. Memorandum of Understanding between the

Government of Lao PDR and the Asian DevelopmentBank for the Mekong Tourism Development Project.Manila.

ADB. NRM. May 2004 People and Livelihood Dimensions inPoverty Reduction Strategy in Nepal, Information PaperNo. 4. Manila.

ADB. 2003. Review of Tourism Masterplan and Road Map forPrivate Sector Participation. Gangtok: Department ofTourism Government of Sikkim.

ADB. 2002. SASEC Tourism Sector Working Group Report andPre investment Survey. Manila.

ADB. 2003. SASEC Working Group Minutes. Manila.APEC. 1966. Impediments To Tourism Growth In The APEC

Region.Ashok Creatives. 2003. Ajanta and Ellora, Regenerated India,

Silent Voices Speak Again. Delhi: Department ofTourism, Government of India.

Ashok Creatives. 2003. Red Fort Delhi, Rebirth of a Fort. NewDelhi: Department of Tourism, Government ofIndia.

Ashok Creatives. 2003. India’s North East Paradise UnexploredTraveller’s Companion. New Delhi:India TourismDevelopment Corporation.

Ashok Creatives. Regenerated India, New Destination,Kurukshetra. New Delhi: Department of Tourism,Government of India.

Association of South East Asian Nations, ASEAN Tourism,Asia’s Perfect 10 Paradise (brochure). Jakarta.

Bangladesh Bank Statistics Department. 2003. EconomicTrends. Dhaka.

Bangladesh Parjatan Corporation, Discover Bangladesh (CDRom). Dhaka: Bangladesh National TourismOrganization.

Bangladesh Parjatan Corporation, Welcome to BangladeshInformation Pack. Dhaka: National TourismOrganization.

Bangladesh Parjatan Corporation. 2001. Tourism Statisticsof Bangladesh. Dhaka.

Bangladesh Parjatan Corporation. 2002. Tourism Statisticsof Bangladesh 2001. Dhaka.

Bangladesh Parjatan Corporation. Tourism Statistics ofBangladesh 2003. Dhaka.

Bezbaruah, M.P. 1999. Indian Tourism Beyond the Millennium.New Delhi: Gyan Publishing House.

Bezbaruah, M.P. 2002. Tourism and Economic Development ofAssam. Guwahati: Napoleon Hazarika MemorialLecture and North Eastern EconomicAssociation.

Bhutan Development Finance Corporation. 2002.Fourteenth Annual Report 2002. Thimphu.

Bhutan Trust Fund for Environmental Conservation. 2002.Annual Report, 1 July 2001 to 30 June 2002.Thimphu.

BIMSTEC. Existing Visa and Entry Formalities for the Countriesin the BIMST-EC Region.

CBD Technical Series. Facilitating Conservation and SustainableUse of Biological Diversity. Secretariat of theConvention on Biological Diversity.

Chettri, N., Sharma. E., Deb, D. and Sundriyal, R. 2002.Impact of Firewood Extraction on Tree Structure,Regeneration and Woody Biomass Productivity in aTrekking Corridor of the Sikkam Himalaya. Gangtok:Mountain Research and Development.

Department of National Park and Wildlife Conservation.2003. Annual Report. Kathmandu: Ministry ofForests and Soil Conservation, Government ofNepal.

Department of Tourism. 2002. Druk Yul, A Multimedia Guideto Bhutan. Thimphu.

Department of Tourism. 2003. Review of Tourism Master Planand Road Map for Private Sector Participation DraftReport. Gangtok: Government of Sikkim.

Department of Tourism. Bhutan: Land of the Thunder Dragon.Thimphu: Government of Bhutan.

Dharma Marg, Chanakyapuri. 2002. An Introduction andResearch Agenda 2002-2004. New Delhi: Office ofthe President, Center for Policy Research.

Directorate of Tourism. On The Holy Trail (CD Rom).Lucknow: Government of India.

Ecotourism and Conservation Society of Sikkim (ECOSS).2002. International Year of Ecotourism South AsiaRegional Conference on Ecotourism Report. Gangtok:Survive Magazine.

Federation of Indian Chambers of Commerce andIndustry. A Guide to Tourism Places in South India.New Delhi.

Federation of Indian Chambers of Commerce andIndustry. Business and Beyond, New Delhi.

Federation of Indian Chambers of Commerce andIndustry. Prospects of Tourism in South India, an AnalyticalStudy, New Delhi.

222


Ferguson, A. F. and Co., FICCI Study on DevelopmentPerspective on Rural Tourism in India. New Delhi:Federation of Indian Chambers of Commerceand Industry.

FICCI-Ferguson. 2002. Tourism in South India. New Delhi:Federation of Indian Chambers of Commerceand Industry.

Department of Tourism Ministry of Tourism and Culture.National Tourism Policy 2002. New Delhi:Government of India.

Department of Tourism, Market Research Division.Highlights of Tourist Arrivals in India 2003. New Delhi:Government of India.

Department of Tourism, Market Research Division. 2002.Tourist Statistics 2001. New Delhi: Government ofIndia.

Department of Tourism, Market Research Division. 2003.Tourist Statistics 2002. New Delhi: Government ofIndia.

Department of Tourism. 2002. Information Pack, BIMSTEC.New Delhi: Government of India.

Department of Tourism. Buddhism, A Spiritual Journey. NewDelhi: Government of India.

Department of Tourism. North East – India’s North East. NewDelhi: Government of India.

Department of Tourism. Tenth Five Year Plan 2002-2007,New Delhi: Government of India.

Department of Tourism. Annual Plan 2003-2004. NewDelhi: Government of India.

Department of Tourism. Highlights of Tourism Arrivals in India2002. New Delhi: Government of India.

Government of India. 2002. Economic Survey 2002-2003.New Delhi.

Department of Tourism. 2000. West Bengal Tourism Policy,1996. Kolkata: Government of West Bengal.

Hummel, John. Nepal and Sustainable Tourism Development,WIPS-2-99. Kathmandu: SNV.

Industrial Development Bank of India. 2001. Profile:Industrial Development Bank of India.

Intercontinental Consultants and Technocrats. 1995.Second Tourism Infrastructure Development Project.New Delhi.

International Center for Mountain Development. 2003.Catalogue of Publications. Kathmandu.

International Center for Mountain Development. 2003.Partnership in Mountain Development, Securing theFuture of the Hindu Kush-Himalayas. Kathmandu.

Japan Bank for International Cooperation. JBIC PowerpointPresentation. Japan.

Japan Bank for International Cooperation. 2002. Guidelinesfor Confirmation of Environmental and SocialConsiderations.

Japan Bank for International Cooperation. 2002. TheRole and Functions of JBIC. Japan Bank forInternational Cooperation.

Japan Bank for International Cooperation. 2002. BasicStrategy of Japan’s ODA Loan, Medium-term Strategyfor Overseas Economic Cooperations.

Japan Bank for International Cooperation. 2003. AnIntroduction to JBIC International Financial Operations,Operations of the Advisory and Consulting Office forSME.

Joshua, Anita. 2000. Steeped in Antiquity. The Hindu, India.Kazi Wahidul Alam. 2004. Dhaka Calling, A Monthly Tourism

Guide. Dhaka: Tahera Wahid Publishing.Khangchendzonga Conservation Committee. Annual

Report 2001-2002. Sikkim.Khangchendzonga Conservation Committee. 2002.

Khangchendzonga The Sacred Mountain A BiodiversityHandbook. Sikkim.

Klatzel, F. and Hoffman, K. 2003. Hands Around Everest,Transboundary Cooperation for Conservation andSustainable Livelihoods. Kathmandu: InternationalCenter for Integrated Mountain Development,The Mountain Institute.

Lotus Trans Travel Pvt. Ltd. Brochure Pack. New Delhi.Maharana, I., Rai, S. and Sharma, E. 2000. Environmental

Economics of the Khangchendzonga National Park in theSikkim Himalaya, India. Sikkim: G. B. Pant Instituteof Himalayan Environment and Development,Sikkim.

Maharana, I., Rai, S. and Sharma, E. 2000. ValuingEcotourism in a Sacred Lake of the Sikkim Himalaya,India. Sikkim: G. B. Pant Institute of HimalayanEnvironment and Development.

Ministry of Civil Aviation. 2003. Report of the Committee on aRoad Map for the Civil Aviation Sector. New Delhi:Government of India.

Ministry of Culture, Tourism and Civil Aviation. NepalTourism Statistics 2001, Kathmandu: Governmentof Nepal.

Ministry of Culture, Tourism and Civil Aviation. NepalTourism Statistics 2002. Kathmandu: Governmentof Nepal.

Ministry of Finance. 2003. The Economic Survey. Kathmandu:Government of Nepal.

National Planning Commission. The Ninth Plan (1997-2002). Kathmandu: Government of Nepal.

National Planning Commission. The Tenth Plan (2002-2006). Kathmandu: Government of Nepal.

Nepal Rastra Bank. 1992. Income and Employment Generationfrom Tourism in Nepal. Kathmandu.

Nepal River Conservation Trust. Code of Conduct for raftingin Nepal’s Rivers. Kathmandu.

223

APPENDIX 7

Nepal Tourism Board. Annual Operational Plan 2003 / 2004.Kathmandu.

Nepal Tourism Board. 2002. Buddhist Circuits in Nepal 2002-03 Destination Nepal campaign (CD Rom). Kathmandu.

Nepal Tourism Board. Lumbini Visitors’ Survey Final DraftReport 2004. Kathmandu: Tourism for RuralPoverty Alleviation Program.

Nepal Tourism Board. Arrival Statistics 2003- 2004.Nepal Tourism Board. Sustainable Tourism Network.Planning Commission. 1999. Bhutan 2020 - A Vision for

Peace, Prosperity and Happiness. Thimphu:Government of Bhutan.

WWF Bhutan Program. 2001. Bhutan National EcotourismStrategy. Thimphu: Department of Tourism,Ministry of Trade and Industry, Governmentof Bhutan.

FNCCI UNDP. 2002. Bhutan Private Sector Survey. Thimphu:Department of Tourism, Ministry of Trade andIndustry, Government of Bhutan,

Royal Monetary Authority of Bhutan. 2003. SelectedEconomic Indicators. Thimphu.

Royal Society for the Protection of Nature. Profile Brochure.Thimphu.

Royal Society for the Protection of Nature. RSPNNewsletter. Thimphu.

SAARC Chamber of Commerce and Industry TourismCouncil. 1996. Regional Cooperation in TourismSeminar cum Government Board Meeting.Kathmandu.

SAARC Chamber of Commerce and Industry TourismCouncil. 1996. Tourism Council Governing BoardMeeting. Kathmandu.

SAARC Chamber of Commerce and Industry TourismCouncil. 1997. Documents Relating to CouncilActivities. Kathmandu.

SAARC Chamber of Commerce and Industry TourismCouncil. 1998. Strategic Plan Developing Tourism inSouth Asia 1998-2010. Kathmandu.

SAARC Chamber of Commerce and Industry TourismCouncil. 2003. SAARC News, OctoberDecember 2003. Kathmandu.

SAARC Chamber of Commerce and Industry TourismCouncil. 2004. Islamabad Declaration, Twelfth SAARCSummit. Islamabad.

SAARC Chamber of Commerce and Industry TourismCouncil. A Brief on SAARC. Kathmandu.

SAARC. 1996. “Common Policy for Progress” Tourism in SAARC.Kathmandu: SAARC Chamber of Commerceand Industry Tourism Council.

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Sikkim Tourism. 2004. Brochures and Tourism Statistic.Gangtok.

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SNV / Shared Service Unit, Marcel Leijzer, RetourFoundation. 2003. Reference Guide on SustainableTourism (CD Rom ). SNV / NetherlandsDevelopment Organisation.

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Tourism Finance Corporation of India Limited. 2003.Fourteenth Annual Report 2002-2003. New Delhi.

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Sangha. Bangkok.Welcome to SATTE 2004. 2004. Information Kit. New Delhi:

11th Satte Travel and Tourism Exchange 2004.World Tourism Organization. 2000. Tourism 2020 Vision.

Madrid.World Tourism Organization. 2004. Tourism Barometer

Volume 2, No. 1. Madrid.World Tourism Organization. Tourism Market Trends 2002.

Madrid.WWF. 2001. Kanchenjunga Conservation Area Tourism Plan.

Thimphu: Department of National Parks andWildlife Conservation, Ministry of Forests andSoil Conservation, Government of Bhutan.

W. S. Atkins. 2001. Ecotourism Project (ADB TA 3332-NEP).Kathmandu.