Policy Planning and Economic Development

Value Chain Analysis and Local Economic Development

Objective

Investigate the structure and working of the tourism value chain in a destination and the economic value generated, and plan and execute actions to enhance the local economic impact of tourism. In destinations that are concerned about poverty alleviation, specific attention is paid to analysing the amount of income from all transactions in the tourism sector that is received by the poor, and to identifying which particular kinds of transactions are most pro-poor or have the potential to be made more pro-poor. The value chain analysis concludes with an action plan outlining interventions to enhance the local economic impact from tourism in the destination; especially interventions that will secure a significant increase in the flow of income and opportunities to the poor.

Duration

Value chain analysis: 2–6 weeks; Local economic development (project execution): 1–3 years

Indicative budget

Depending on scope and nature of project (minimum budget value chain analysis: € 10,000; minimum budget local economic development: € 50,000)

Outputs / deliverables

Creation of a tourism value chain and strengthened capacity of local stakeholders in the tourism sector to plan and manage interventions to enhance the local economic impact from tourism in the destination. 

Methodology: 

Two phase approach:

Phase I:
Value chain analysis mission which investigates the structure
of the tourism value chain in the destination and prepares an
action plan to enhance the local economic impact from
tourism.

Phase II:
Execution of project interventions to enhance the local
economic impact from tourism in the destination. A local
organization is selected to act as executing agency for
the planned interventions, and capacities are built among
key stakeholders in the destination to encourage and enable
them to work together on enhancing the local economic
impact from tourism.