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Terms of Reference

Develop a community-based ecotourism business model and investment

strategy which supports the conservation of the Mayan Forests in the Yucatan

Peninsula

I. Background:

After the Amazon, Mesoamerica’s Mayan Forest is the largest remaining tropical rainforest in the

Americas. The 35 million-acre forest stretches across Belize, northern Guatemala, and Mexico’s Yucatan

Peninsula. Its extensive and diverse forests provide refuge for countless rare and endangered species like

the white lipped peccary, tapir, scarlet macaw, harpy eagle and howler monkey. It is one of the few places

on Earth where five large cat species live – the jaguar, puma, ocelot, jaguarondi and margay – and is an

important stopping place for migratory bird species.

This rich natural resource base, which supported the growth of such mighty civilizations as the Mayans,

continues to provide basic needs such as firewood, food, and timber as well as spiritual resources for

today’s indigenous populations, who are largely dependent on the forest for their livelihoods. Due to

Mexico’s unique ejido system, 60% of Yucatan’s forests are community-owned and managed.

Throughout the Yucatan Peninsula, many indigenous communities continue to focus on diversified,

community-based agricultural systems which are compatible with forest conservation. Most focus on

subsistence farming, utilizing a highly efficient “milpa” system which combines corn, beans, and other

crops. Bee-keeping and sustainable forest management for timber also make up a significant portion of

their income. It is because of the Mayan’s sustainable system of land-use that 85% of the Yucatan

Peninsula is still under forest cover, despite centuries of population.

This system is under increasing threat, however. Traditional practices often generate low income and

public service provision tends to deficient, and therefore poverty is high in rural areas. As a result, rural

youth are beginning to seek opportunities in cities outside of the ejido. Rural abandonment makes the

communities vulnerable to increasing pressures to convert or sell their land for commercial agriculture

and ranching, industry, urban expansion, and road construction. Subsidies that promote forest conversion

make resisting these pressures even more difficult. As a result, the Yucatan Peninsula loses almost 200,000

acres of forest per year. Rather than improving the welfare of local people, the current development

model deepens the cycle of poverty by threatening food security, reducing access to clean water, and

increasing vulnerability to climate change.

In order to ensure that the forests of the Yucatan Peninsula remain standing, local communities need

livelihood opportunities that support a thriving future for their youth. By avoiding rural out-migration,

Mayan families can stay together, and communities can maintain their traditional ways of life and culture

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while maintaining the forests that sustain us all. In order for youth to stay on their lands, they need

livelihood opportunities that compete with those provided in nearby cities or the United States.

Ecotourism1 has the potential to bring economic development for local communities and contribute to

conserve forests in the in the Yucatan Peninsula, which are critical areas in terms of biodiversity and are

considered to have great tourism development potential. The Yucatan attracts thousands of traditional

tourists every year mainly towards beach resorts in the Riviera Maya, but it also offers a wide array of

tourism products combining Mayan archeological sites; scenic landscapes, including colorful lagoons,

high-quality forest areas, mangroves; and a rich local culture that thousands of visitors to the Riviera Maya

could enjoy. In fact, globally, nature-based tourism, adventure tourism, and cultural tourism is growing at

fast rates, and much faster than traditional resort-oriented tourism. This makes the case for investments

in greener and sustainable tourism as a means to create jobs and reduce poverty improving economic,

social and environmental outcomes.

Design Thinking Framework Design thinking is a human-centered approach to innovation that helps organizations find unmet needs

and create value by taking into account gathered customers and user insights gained form real-world

experiments, tests and projects, not just data or market research. It minimizes the uncertainty and risk of

innovation. This approach brings together what is desirable from a human point of view with what is

technologically possible and economically viable. It is an iterative process with an agile methodology.

Challenge to Address Conserve the Mayan Forest in the Yucatan Peninsula, Mexico, by creating new income generation

opportunities for local communities, with a particular focus on women and youth.

Objectives General: Develop a community-based ecotourism business model and investment strategy which

supports the conservation of the Mayan Forests in the Yucatan Peninsula.

Specific:

• Develop a community-based ecotourism business model for the Yucatan Peninsula using a design

thinking approach.

• Assess the feasibility in economic, social, and environmental terms of community-based

ecotourism business model.

• Develop an investment strategy for the community-based ecotourism business model.

Key principles

1 Ecotourism is understood as responsible travel to natural areas that conserves the environment, socially and economically sustains the well-being of the local people and creates knowledge and understanding through interpretation and education of all involved (Source: Global Ecotourism Network). This includes different nature-based forms of tourism in which the main motivation of the tourists is the observation and appreciation of nature as well as the traditional cultures prevailing in natural areas. Finally, ecotourism minimizes negative impacts upon the natural and socio-cultural environment.

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The feasibility assessment and business solution will need to consider the following key principles:

• Conservation-Focused: The project aims to protect the Maya Forest. As such, community-based

ecotourism business model, and any associated infrastructure (hotels, restaurants, etc.), need to

be built in a way that is compatible with, and actively promotes, the conservation of the forest

through which it passes.

• Inclusive and Community-Led: The forest land where the project would be developed is owned

by the local communities (ejidos). The project must be driven/owned by them and the benefits

construed by them. This will require an extensive engagement and organizing process to bring the

ejidos together to agree on the project and a shared governance system.

• Self-Sustaining: The goal of this project is that it is sustained over time by the revenue it

generates. While it will need up-front investment to design and create trails, train tour operators,

restaurant owners, and hotel service providers; market the experience; and improve the

infrastructure; all aspects of the proposed business model, including forest conservation activities

should be sustained over time by project revenue.

II. Specific Activities and Deliverables:

1) Develop a detailed workplan for the consultancy. The work plan will include a description of the

methodology to be used, deadlines, roles and responsibilities. This workplan must be discussed with

and approved by, the TNC point of contact.

2) Develop a community-based ecotourism business model for the Yucatan Peninsula using a Design

Thinking approach

The Business Model should meet the key principles defined in the project description above. The

development of potential models should consider different levels of community management and

ownership. The consultant should consider assessing other similar types of eco-tourism activities and

analyze the pros and cons of those business models (e.g. Sierra Norte Expeditions in the Pueblos

Mancomunados of Oaxaca). The Business Model should answer the following questions:

o What are the established capacities in communities and ejidos for tourism service provision?

What are the current human capacities? What is the physical available infrastructure?

o Which is the potential development of capacities for tourism service provision?

o Which are the main attractions for tourists?

o Which area(s) should be prioritized?

o How will the model contribute to reduce deforestation? How are environmental conservation

activities paid for?

Deliverable 1. Workplan

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o What is the role of different stakeholders within the model (e.g. communities, businesses,

government agencies, etc.)?

o Who is (are) operator(s)?

o Who owns and manages the hotels and restaurants?

o Who provides specific services? (e.g. guided activities)

o How do communities would benefit?

o How will tourists will be linked to community service providers?

o How do different business options affect the attractiveness to tourists?

o How can a consistent level of quality be ensured?

o What are the cash flow implications of different business options?

o What are the risks associated to the model?

o Is the business model compelling to investors?

This activity will be composed of three phases. Phase 1 and 2 are expected to be developed during the

first half period of the consultancy, while Phase 3 is expected to be developed during the second half.

Figure 1. Design thinking - 5 stage process. Source: NNGROUP.com

a) Phase 1. Understanding Phase: Empathize & Define

The Consultant, in coordination with TNC’s Project Team (“The Team”), will better understand local

community members (ejidos, women, youth, local enterprises) and key stakeholders, including

government, private sector, and NGOs, through observation as well as hearing their hopes, desires and

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concerns. It will be key to remain grounded in the desires of the communities engaged in order for ideas

to evolve into the right solutions and get smart on the challenge to address.

Empathize –The Consultant will empathize, understand and bring local community members and other

key stakeholders in the design process (e.g. state government officials in charge of tourism development;

comisariado ejidal; women groups; ecotourism companies in the Yucatan Peninsula; etc.). Immersing,

primary, in the community members’ world will allow to open up to new creative possibilities. This will

allow The Team to leave behind preconceived ideas and outmoded ways of thinking.

i) Frame the Design Challenge. Organize and carry out a session to frame the design challenge

tool with the Team (See Annex 1. Design Challenge Form).

ii) Develop of an Engagement Strategy. The Strategy will include: (i) who to talk to, (ii) what to

ask them, (iii) what piece of information is needed to gather. This Engagement Strategy will

have right balance of experts, women and men, people of different communities, key

government officials, NGO’s, other businesses or competitors as well as a full range of

behaviors, beliefs and perspectives. It should include an Interview Plan and take into

consideration gender and social dynamics of the communities. (See Annex 2. Initial list of

people/institutions to interview).

iii) Implement the Engagement Strategy. It should include individual, group and expert

interviews for the different stakes. TNC’s Project Team will identify in which interviews TNC

staff will participate. In some cases, TNC will facilitate access to interviewers. The interviews

should provide information about what are communities’ needs, concerns, and

expectations; what are the current installed capacities to provide tourism services; how can

reduction of deforestation be linked to ecotourism development.

iv) Carry out Secondary Research. As the TEAM moves into the Inspiration phase, more context,

history and data will be needed. The Consultant will complement needed information by

doing research on-line, reading books, reports, newspapers, crunching numbers, etc. He/she

will entail finding recent innovations, world examples, case studies and other solutions

around community-based conservation tourism to search for inspiration.

v) Develop market and user research on community-based conservation tourism in the region.

This will include revising specific information from previous analysis regarding feasibility of

ecotourism services in the Yucatan Peninsula; demand for ecotourism products; existing

supply of ecotourism products, among others.

vi) Carry out Regional mapping of community-run attractions and general tourism offers in the

identified the Yucatan Peninsula, and clearly identify enterprises or community groups in the

tourism related sector. Service providers should also be considered.

vii) Organize and document a Service Safari, with participation of TNC’s Project Team and

identified key community members and key stakeholders, to a renowned community-run

Deliverable 2. Frame of design challenge and engagement strategy

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tourism such as Sierra Norte expedition in the Pueblos Mancomunados of Oaxaca. This

experience will allow The Team to build a collective understanding and begin to define what

makes a great service experience.

Define – In this phase, the consultant will work with TNC’s team to make sense of all the possibilities

identified in the Empathize process to develop a community-based ecotourism business model. The mass

of ideas and findings are analyzed and structured into a reduced set of problem statements. This should

be aligned with TNC’s and the communities’ needs and conservation objectives.

i) Define criteria to select the area where the prototype will be developed. This should include

environmental, social and economic considerations.

ii) Characterize potential users – Creating Personas: To take into account the needs of specific

stakeholders, the consultant will help determine how the design challenge – and its possible

solutions - will fit the conventional requirements of users and beneficiaries of different ages

and backgrounds. This will involve the consideration of several fictional characters that can

represent the majority of the potential users of product with conventional user demands. This

will answer the question “Who do we design for?” and “will it contribute to the solution

design based on research findings considering different potential users?”.

iii) It would also be helpful if they can outline specific target customers for each option. (i.e. a

“luxury” option would attract customer X, a “budget” option would attract customer Y…etc.)

iv) Briefing. Organize a session/workshop with TNC Project Team to share, group and make sense

of the most important findings. During this session, the Consultant will guide TNC’s Project

Team to group findings from the field research into categories or themes, define insights and

frame opportunities.

o Define Insight Statements. Identify key themes from the research to define Insights -

concise expressions of learnings from research and inspiration activities.

o Frame Opportunities – Make insights actionable by turning them into brainstorming

questions, to prepare for ideation phase.

Deliverable 3. First draft report with background context, market research, user research

documentation of most important/interesting findings (Personal details, Interesting

stories, Motivations, Frustrations, Interactions, Remaining Questions), interviews results

and regional mapping of community and general tourism “attractions”. Report should

include photos/videos and capture quotes to represent the voice of participants.

Deliverable 5. Challenge brief report, documenting key themes identification process and

framing opportunities. The Consultant will create visual representations of the system to

synthesize learnings and find clarity concepts (relational maps, journey maps, etc.).

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b) Phase 2. Exploring Phase (Ideate, Prototype)

The consultant along TNC’s Project Team will use design and creative techniques, in order to develop the

individual service components in detail and ensure they link together to form a holistic experience. The

final service will incorporate users’ feedback and be ready for implementation phase.

Ideate – The Team will generate ideas and solutions through working sessions with different stakeholders.

The goal is to generate a large number of ideas — ideas that potentially inspire newer, better ideas —

that the Team can then cut down into the best, most practical and innovative ones. The TEAM will share

with the community members and key stakeholders what has been learned, give structure and define a

concept from a vast amount of data, and identify opportunities for design.

i) Brainstorming: With the challenge brief report, the consultant will hold a brainstorming

session with The TEAM to generate possible solutions ideas to it. This session will be

facilitated to filter the most probable and impactful ideas to start a process for their

development.

Co-creation sessions with community members and key stakeholders to generate design

solutions.

ii) Create a Concept. To move from a handful of ideas and insights into a fully-fledged concept

that starts to look like an answer to the design challenge.

iii) Preliminary Canvas Business Model and discussion of the Preliminary Business Model.

Prototyping – The Consultant will develop a minimum viable product and/or specific features within the

product. This is an experimental phase and the aim is to identify the best possible solution for each of the

problems identified during the previous stages.

iv) Preliminary prototype: Develop and present to TNC’s Project Team for initial feedback:

o The Service Blueprint. A detailed visual representation of the total service over time -

showing the user’s journey, all the different touchpoints and channels, as well as support

areas of the service that make it work.

o Business Model Canvas. A visual tool for describing and developing the business model.

o Rapid Prototyping. A quick prototype in order to make ideas tangible. The design for this

model implies building to test the idea and get fast feedback. The prototype should have

an estimated cost and price.

v) Design session: Organize a session with a selected group of key community members and

key stakeholders (including, state government officials; ecotourism companies) in order to

get feedback on the preliminary prototype from the different perspectives of the

participants. During this session, the TEAM will receive feedback to finalize Service Blueprint,

Business Model Canvas and Rapid Prototyping. The completed canvas will provide a high-

Deliverable 6. Co-creation session report, with concept definition and preliminary canvas

model.

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level blueprint for the business, including the customer, internal operational and financial

elements.

vi) Develop a User Journey Mapping: a map of user’s progress through the community-based

conservation tourism service end-to-end experience, beginning with when they first become

aware of the service through to when they leave. Consultant will identify the individual

touchpoints in each stage and will consider the different potential users identified in the

Define phase.

c) Phase 3. Materialize (Testing, Validation, Improvements, Roadmap). Testing the prototype with

users throughout the process will help ensure a more robust service and focus the Teams’ efforts

to identify the most feasible and impactful solution from other alternatives. This phase will involve

multiple iterations, trial and error, of previous phases. It will allow to demonstrate the eventual

feasibility of the business model and obtain a minimum viable product.

Testing i) Fan trip: The consultant will test the prototype with a group of potential users and costumers

in order to get feedback and useful information to adjust and optimize the business model.

This will involve a trip with key stakeholders to experience the proposed ecotourism product

and provide feedback to obtain a minimum viable product.

ii) Iterations: through several iterations and trial and errors, the results generated during the

testing will help to redefine one or more problems and inform the understanding of the

users, the conditions of use, how people think, behave, and feel, and to empathize. During

this phase, alterations and refinements are made in order to rule out problem solutions and

derive as deep an understanding of the product and its users as possible.

Roadmap iii) The consultant will present a suggested roadmap with timelines, responsibilities and

milestones for business model implementation.

3) Inputs for investment model.

Identify inputs, and estimate costs and revenues, as well as risks identified, to implement the

proposed business model. In addition, generate a hypothesis of investment model structure.

This component will be developed in parallel of activities (2) and (3). It will consider different cost and

revenue scenarios depending on the type of customer/experience (e.g. “luxury” vs. “budget traveler”)

to illustrate different levels of cost and feasibility of potential solutions.

Deliverable 7. Finalized Service Blueprint, Business Canvas Model and Prototype.

Deliverable 8. Finalized Business Model as well as the Roadmap for implementation

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a) Input identification. This should include, but may not be limited to:

o Partnerships (corporate or other) o Equipment o Infrastructure (i.e. accommodations, trails, routes, etc.) o Trainings o Human resources

b) Establishment costs of the proposed business model. These costs should include but may not be

limited to the following.

o Consultation process with local communities and other key partners

o Creation and establishment of an overarching governance structure for the community-led

enterprise

o Detailed mapping and planning of the ecotourism attractions

o Environmental impact assessments

o Infrastructure

o Training for local guides, hotel operators, restaurant owners, etc., in key themes such as

English, service provision, first aid, etc.

o Marketing

c) Operation costs. These costs should include, but may not be limited to, the following:

o Business expenses of the community tour operator(s)

o Costs to maintain the trail and associated infrastructure

o Hotel and restaurant operational expenses

o On-going training and capacity building of local communities

o On-going marketing costs

All the assumptions used to estimate costs must be clearly indicated.

d) Estimate of potential revenue from the project. This should recognize revenue in the short,

medium, and long-term. This estimate should indicate how many users (tourists) and in which

geographies and sectors is the revenue expected (food/restaurants; lodging; cultural activities;

entrance fees; etc.).

e) Estimate the required total investment.

f) Identify and quantify, when possible, indirect benefits or costs from the project

o Environmental benefits, such as reduction in deforestation, conservation of habitat for key

species, etc.).

o Social benefits (e.g. employment (how many jobs might this create?), reduction in youth

migration, etc.).

g) Identify the main risks of the Project – The consultant will identify the main risks associated and

potential mitigation strategies. This will involve: (i) identify the risk; (ii) assess the risk; (iii) propose

risk controls. It will also identify public policies that might be needed or that could help overcome

the risks identified. See annex 3 for proposed risk assessment template.

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h) Hypothesis of investment structure-. A hypothesis for the investment model/structure necessary

to capitalize the investment. (i.e. a JV with an existing large tourism operator? Several startup

loans to various community enterprises? Something else?)

o How much capital is necessary?

o In what form (debt, equity, mix)?

o What is the projected return on investment, over what time period?

III. Timeline

Activities and deliverables should be completed within 6 months of signing the contract. The first stage

is expected to be completed in a period of three months and will comprise phases’ 1 and 2 of the

development community-based ecotourism business model. The second stage, comprising phase 3 of

community-based ecotourism business model and the estimation estimate of costs and revenues

(activity 4), will be completed subsequently during a 3 months period.

IV. Candidate Profile

The ideal candidate(s) may be a consultant or team with experience/knowledge in:

• Human-center design developing and designing successful business models.

• Establishing adventure/eco/cultural tourism experiences.

• Knowledge of relevant international tourism market trends and demands, and preferably

knowledge of the tourism sector in the Yucatan Peninsula.

• Demonstrated experience working with communities.

• Environmental sustainability.

Candidates must be bought into the principles for this project outlined in this document and keep those

principles top of mind throughout the completion of this consultancy.

Deliverable 9. Inputs for investment model containing all the information indicating in

section 3 (a to h).

Deliverable 10. Final report containing final versions of all previous deliverables, support

documents and recommendations of interested investors.

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V. Contract Amount and Payment Schedule

Payments will be made according to the following schedule:

No. Deliverable (completed to the satisfaction of TNC) Time since the begin of activities

Percentage of Total

1 Contract signed and Deliverable 1 (Work plan completed) 1 week 30%

2 Deliverables 2 (Design challenge, engagement Strategy and Interview Plan) 3 weeks 30%

3 Deliverables 3 and 4 (Background context, market/user research, main findings)

8 weeks

4 Deliverable 5 completed (User Journey Mapping, Define Workshop) 10 weeks

5 Deliverable 6 (Co-creation report with concept definition, first Business Canvas Model)

11 weeks 25%

6 Deliverables 7 (Service Blueprint, Business Canvas Model and Rapid Prototype)

12 weeks

7 Deliverable 8 (Finalized Business Model, Roadmap) 20 weeks

8 Deliverable 9. (Inputs for investment model) 20 weeks

9 Deliverable 10. (Final Report) 24 weeks 15%

In order to proceed with the payments agreed in the contract, the contractor must await the approval of

TNC for the products delivered and must also submit an invoice requesting payment. TNC reserves the

right to pay up to 30 days after receiving the corresponding invoice.

The consultant must submit the products mentioned above in an electronic version (Word, Excel, and/or

compatible programs with MS Office). If the products include photographs or maps, the original files (in

JPG, ArcView or any other MS Office compatible program) must also be submitted.

Other Expenses

The contractor is not authorized to request reimbursement for travel expenses or other types of

additional expenses, if the amount has not been included within the agreed fees in the contract.

VI. Technical proposals

Interested consultants should submit technical and economic proposals by March 25, 2020 to Laura

Calderón (laura.calderon@tnc.org). Proposals will be evaluated based on the technical quality and cost

by an evaluation committee. Technical proposals must contain the following annexes:

• Interest letter containing of why the proposed team has the experience and knowledge required

to develop the work (2 pages maximum).

• General information of the Consultant, including mentions to work previously conducted that is

relevant to this consultancy.

• Proposed methodologies (interviews, etc.) to carry out the scope of work

• CV of team members.

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• Budget breakdown.

VII. Contact

The main points of contact for this consultancy are Laura Calderón, Conservation Finance Specialist

(laura.calderon@tnc.org) and Liliana Davila, Lands Director (liliana.davila@tnc.org).

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Annex 1: Design Challenge Form. Extracted from Field Guide to Human Centered Design by IDEO.org

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Annex 2: Suggested list of institutions/stakeholders to interview

1) Community leaders (including women and youth)

2) Existing ecotourism companies/service providers/hotels in the area of intervention

3) International companies marketing eco-tourism experiences in Mexico or Latin America

4) Relevant government officials

5) Tourist and other stakeholders from the demand side

6) NGOs working in the Yucatán Peninsula in tourism or relevant topics

7) TNC staff

8) Impact investors

Annex 3. Risk assessment template suggestion

Possible Area of Risk Goal Risk Level (very low, low, medium, high, very high)

Current Situation (where the business model stands today)

Product quality Product quality can be great and sustained along the experience

Team There is a team able to develop all areas of the business model

Public policies Good policies are in place and generate enabling environment for the business idea to succeed

Sales/marketing The product can be sold by the team

Local governance There is good community governance

Safety The area is safe

Competition in the short term

Competition in the long term The model has defensibility.

Funding There is enough capital or potential investors/lenders to reach milestones.

etc…

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