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ASIAN DEVELOPMENT BANK AND THE SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION (SASEC) TOURISM WORKING GROUP ADDENDUM TO THE SASEC TOURISM DEVELOPMENT PLAN TO INCLUDE SRI LANKA TA 6079 (REG): EXPLORING SRI LANKA’S SUBREGIONAL ECONOMIC COOPERATION POTENTIAL TOURISM RESOURCE CONSULTANTS LTD APRIL 2006
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Page 1: TO THE SASEC TOURISM TO - Asian Development Bank€¦ · 1.1. The SASEC Tourism Development Plan (TDP) 8 1.2. Sri Lanka Joins SASEC Tourism Working Group 10 1.3. Rationale for an

ASIAN DEVELOPMENT BANK

AND THE

SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION (SASEC) TOURISM WORKING GROUP

ADDENDUM TO THE SASEC TOURISM DEVELOPMENT PLAN

TO INCLUDE SRI LANKA

TA 6079 (REG): EXPLORING SRI LANKA’S SUBREGIONAL ECONOMIC COOPERATION POTENTIAL

TOURISM RESOURCE CONSULTANTS LTD APRIL 2006

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EXECUTIVE SUMMARY

Tourism has been a priority sector of the South Asia Subregional Economic Cooperation (SASEC) program since its inception in 2001. The SASEC Tourism Working Group (TWG), made up of the tourism ministries and national tourism organizations (NTOs) of Bangladesh, Bhutan, India and Nepal, has met six times. At its sixth meeting at Colombo in November 2005, the TWG welcomed Sri Lanka as a new participant in the SASEC tourism program.

The TWG’s work is guided by the SASEC Tourism Development Plan (TDP), available at www.adb.org/SASEC/reports.asp. Designed to complement existing national and state tourism development plans, the TDP contains a framework and rationale for various subregional tourism development projects currently underway. This Addendum to the TDP has been prepared to include Sri Lanka. Its preparation included creative planning sessions with Sri Lanka’s tourism industry and a workshop session at the sixth TWG meeting.

Underpinning many SASEC tourism projects are the TWG’s common themes of “ecotourism based on natural and cultural heritage” and “Buddhist circuits”. Both of these are highly relevant to the immediate agenda of Sri Lanka’s tourism industry. Although the full implications of Sri Lanka’s membership of the SASEC TWG will take time to unfold, this Addendum makes sufficient changes to the TDP to enable Sri Lanka’s future active participation in the subregional tourism program.

The overall SASEC program is about to move into a Third Phase during which there will be emphasis on cross-regional cooperation opportunities, particularly with BIMSTEC. By expanding to include Sri Lanka, the tourism sector program is leading the way in this regard. The future of the SASEC tourism program is likely to include renewed emphasis on infrastructure requirements, travel facilitation and promoting public-private partnerships.

Since the original TDP was prepared, India’s economy has continued on a rapid growth trajectory. Such growth cannot occur in isolation. Neighbors must collaborate. In this regard, one of the SASEC program’s challenges is to create and maintain a regional environment conducive to growth. The new SASEC subregion, including Sri Lanka, has a collective population of 612 million. It is one of the world’s largest poverty belts.

Sri Lanka is particularly interested in expanding international air linkages. Almost all visitors to Sri Lanka arrive by air. Arrivals on scheduled airlines account for 96.1 percent of the total visitors. Many European visitors combine other countries with their visit to Sri Lanka. In 2002, a national industry committee prepared a “Five-Year Strategy for Growth”. Subtitled “Transforming the Sri Lankan Tourism Industry”, this document contains strategies designed to last until the end of 2006. The strategies generally favor private sector-led development, with government in the role of facilitator and regulator.

In line with the 2002 strategies, a new Tourism Law was passed by the Sri Lanka’s parliament in October 2005. The Law makes many significant structural changes. A Tourism Promotion Authority (TPA) replaces the Ceylon Tourism Board. A Tourism Development Fund will be supported by a tax on tourism operations plus a portion of airport departure taxes. A Tourism Marketing and Promotion Bureau will be a public / private partnership for marketing work. A Sri Lanka Institute of Tourism and Hotel Management will be created by restructuring an existing government hotel school. A Sri Lanka Convention Bureau will undertake meetings, incentive travel, conventions and exhibitions.

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Sri Lanka tourism is aiming for high growth. To achieve this, the industry believes it must improve air access, undertake up-market promotion and enhance regional cooperation. The industry is also aiming to reposition the country’s tourism image to the high value end of the market. Flagship projects are underway. Human resource development is required to ensure high service standards. In future, facilities at the International Airport will need upgrading. Invigorated domestic air services, improved domestic airports and improved cruise ship facilities will also be required.

Many key tourism attractions in Sri Lanka are centered on cultural heritage and natural environment sites. Sri Lanka features seven World Heritage Sites, six dating back 2000 years. National parks are well developed, many linked to cultural attractions. This combination offers excellent opportunities for ecotourism. Among the cultural heritage sites are important Buddhist places. A developing product trend is an emphasis on soft adventure tourism and health tourism, particularly incorporating the traditional practices of Ayurveda.

Under Program I, Coordinated Marketing, the TWG has invited Sri Lanka’s participation in joint destination marketing seminars and Sri Lanka has expressed willingness to contribute funds and information for future printing of updated SASEC marketing collateral that will include Sri Lanka. Sri Lanka is also willing to participate with the other SASEC NTOs in the subregional training workshops on collecting visitor statistics.

In Program 2, Enhancing Product Quality, Sri Lanka has expressed strong interest in maintaining high subregional standards, especially in ecotourism. At Sri Lanka’s request, the TWG has agreed to a new project on Green Labeling and other Quality Assurance for High-end Nature / Culture Tourism. Also at Sri Lanka’s request, the TWG has added a project on Enhancing Quality in Health Tourism. Both of these new projects will be led by Sri Lanka.

Under Program 3, Facilitating Travel, Sri Lanka is particularly interested in the air linkages component in proposed studies of intraregional and interregional connectivity. In Program 4, Developing Human Resources, Sri Lanka has offered to assist Bangladesh in leading the existing project on Encouraging the Network of Asia Pacific Education and Training Institutes in Tourism (APETIT) to engage with South Asia. Sri Lanka will also seek funds for sending participants to training workshops scheduled under the current ADB HRD TA.

Under Program 5, Developing Ecotourism Based on Nature and Culture, Sri Lanka will be a willing participant in projects relevant to its interests. Under Program 6, Developing Buddhist Circuits, the TWG agreed to Sri Lanka’s proposal to change the project title “Living Buddhism in the Himalaya” to “Living Buddhism in the South Asia”. Sri Lanka will assist in the leadership of this project where practicable.

Under Program 7, Enabling the Private Sector, Sri Lanka is an advocate for the Tourism Investment Fund project idea and for promoting public private partnerships in tourism.

The additions and amendments made to the TDP by this Addendum make the TDP highly relevant to the immediate development agenda of Sri Lanka’s tourism industry. Sri Lanka has skills and enthusiasm to contribute to the TWG’s work of implementing the TDP. For these reasons, Sri Lanka’s inclusion in SASEC tourism program is viewed by the TWG as a significant new step in the expanding collaboration between the tourism sectors of South Asia.

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TABLE OF CONTENTS

Executive Summary 2

Table of Contents 4

Abbreviations Used In This Report 6

1. Introduction 8

1.1. The SASEC Tourism Development Plan (TDP) 8 1.2. Sri Lanka Joins SASEC Tourism Working Group 10 1.3. Rationale for an Addendum to The TDP 10 1.4. Preparing the Addendum 11 1.5. Format of the Addendum 12 1.6. Acknowledgements 12

2. Context 13

2.1. The SASEC Subregion 13 2.2. Sri Lanka’s Economic Profile 14 2.3. Sri Lanka’s Tourism Patterns 16 2.4. Sri Lanka’s Tourism Development Agenda 20 2.5. Tourism Attractions 23 2.6. Issues And Constraints 24

3. Additions and Adjustments to the TDP 25

3.1. Program 1 – Coordinated Marketing 25 1.1 Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits 25 1.2 Regional Marketing with Satte 25 1.3 Harmonizing Arrival Statistics 26 1.4 Events Calendar 26

3.2. Program 2 – Enhancing Product Quality 26

2.1 Product Standards and Industry Codes of Conduct in Ecotourism and Buddhist Circuits 26

2.2 Green Labeling and Other Quality Assurance for High-End Nature/Culture Tourism 27

2.3 Enhancing Quality in Health Tourism 27

3.3. Program 3 – Facilitating Travel 28 3.1 Eastern Himalaya Caravan 28 3.2 Bagdogra Tourism Gateway and Hub 28 3.3 Reducing Impediments to Subregional Travel 28 3.4 Asian Highway Improvements Advocacy 29

3.4. Program 4 – Developing Human Resources 29

4.1 Encouraging the Network of Asia Pacific Education and Training Institutes in Tourism (APETIT) to Engage with South Asia 29

4.2 South Asian Host 30 4.3 Training for Travel Media 30 4.4 Project Management Training for NTOs, LTOs 30 4.5 HRD and Capacity Building in Tourism (ADB) 31

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3.5. Program 5 – Developing Ecotourism Based On Nature And Culture 31 5.1 Trekking in The Himalaya 31 5.2 Ecotourism in Ganga-Brahmaputra 32 5.3 Integrated Project on Adventure Tourism 32 5.4 South Asia Sustainable Tourism Forum 32 5.5 Sasec Integrated Product Development 33

3.6. Program 6 – Developing Buddhist Circuits 33

6.1 Footsteps of Lord Buddha 33 6.2 Living Buddhism in South Asia 33 6.3 Buddhist Art and Archaeology in South Asia 34

3.7. Program 7 – Enabling The Private Sector 34

7.1 Tourism Investment Fund 34 7.2 Public Private Partnerships 35 7.3 Fiscal Policy Study 35

4. Conclusions 36

Appendix: SASEC Tourism Development Matrix and Action Plan - February 2006 37

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ABBREVIATIONS USED IN THIS REPORT

ADB Asian Development Bank APETIT Asia Pacific Educational Training Institute for Tourism BBIN Bangladesh Bhutan India Nepal BBINS Bangladesh Bhutan India Nepal Sri Lanka BIA Bandaniyake International Airport BIMSTEC Bay of Bengal Initiative for Multi Sectoral Technical and Economic

Cooperation (previously: Bangladesh India Myanmar Sri Lanka Thailand – Economic Cooperation)

BPC Bangladesh Parjatan Corporation CTB Ceylon Tourist Board GMS Greater Mekong Subregion GoI Government of India HRD Human Resource Development ICIMOD International Center for Integrated Mountain Development INGO International Non-Governmental Organization IUCN World Conservation Union JBIC Japan Bank for International Cooperation LTO Local Tourism Organization MFI Multilateral Financing Institution MICE Meetings, Incentive travel, Conventions and Exhibitions NGO Non-Governmental Organization NTI Namgyal Institute for Tibetology NTB Nepal Tourism Board NTO National Tourism Organization PATA Pacific Asia Travel Association PPP Private Public Partnerships RGoB Royal Government of Bhutan SAARC South Asia Association for Regional Cooperation SASEC South Asia Subregional Economic Cooperation SATTE South Asia Tourism and Travel Exchange SME Small and Medium Enterprises SNV Netherlands Development Agency STF Sustainable Tourism Forum SuMiT Sustainable Mountain Tourism in the Himalaya (SuMiT) TA Technical Assistance TDP Tourism Development Plan TIF Tourism Investment Fund ToT Training of Trainers TWG Tourism Working Group UNDP United Nations Development Program UNESCAP United Nations Economic and Social Commission for Asia and the

Pacific UNESCO United Nations Educational Scientific and Cultural Organization UNWTO United Nations World Tourism Organization (formerly WTO) VFR Visiting Friends and Relatives WWF World Wide Fund for Nature/World Wildlife Fund

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SASEC Countries and the SASEC Subregion

“For the purposes of this Addendum, the “SASEC countries” are Bangladesh, Bhutan, India, Nepal and Sri Lanka. The “SASEC subregion” is Bangladesh, Bhutan, 13 of the North, East, and North East states of India (West Bengal, Bihar, Uttar Pradesh, Orissa, Jharkhand, Assam, Meghalaya, Manipur, Tripura, Mizoram, Nagaland, Arunchal Pradesh, and Sikkim), Nepal and Sri Lanka.” (see Section 2.1 The SASEC Subregion).

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1. INTRODUCTION

1.1. THE SASEC TOURISM DEVELOPMENT PLAN (TDP)

The South Asia Subregional Economic Cooperation (SASEC) program began in 2001 with the establishment of a South Asian Growth Quadrangle comprising Bangladesh, Bhutan, India and Nepal. The Asian Development Bank (ADB) has been supporting participating countries through regional technical assistance (RETA). From the outset, tourism has been a priority sector and the SASEC Tourism Working Group (TWG) has met six times, most recently at Colombo, Sri Lanka in November 2005. Tourism ministries and national tourism organizations (NTOs) from the SASEC countries attend TWG meetings. Other development partners join ADB at TWG meetings and in assisting the NTOs to implement TWG projects.

At its second meeting, the TWG identified the preparation of a subregional tourism masterplan as a priority and requested support from ADB to prepare the plan. The TWG refined this request at its third meeting, agreeing that the plan should be a subregional tourism development plan and it should build upon existing tourism plans in each of the four countries. The TWG also agreed that the Plan should establish a thematic framework for future tourism development and that planning should start with two common themes: ecotourism based on natural and cultural heritage; and Buddhist circuits.

At the fourth meeting of the TWG at Thimphu, Bhutan in May 2004, the TWG considered a draft SASEC Tourism Development Plan (TDP). The draft had been prepared by an internationally recruited planning team using a methodology that emphasized in-country consultations with tourism stakeholders at national-level workshops led by the NTOs. The planning team’s approach was to understand the individual tourism development agendas and find interests in common. Macro-level subregional analysis was also undertaken. The resulting ideas were discussed with the TWG and prospective development partners at a subregional workshop during the fourth TWG meeting at Thimphu. As an outcome of that workshop, the strategic directions and specific projects in the draft TDP were strongly endorsed by the TWG.

Subsequently, the TDP was published. (A bound copy may be purchased from the Publications Unit, ADB, P.O. Box 789, 0980, Manila, Philippines, Fax +632 636 2648 or the TDP may be downloaded at no cost from the ADB website at www.adb.org/SASEC/reports.asp). The TDP contains summaries of the tourism patterns and the future tourism development agendas of the four countries. It proposes core strategic directions for the TWG that build upon and add value to the national agendas. These core strategic directions are:

i) Tourism should be sustainable and contribute to the reduction of poverty;

ii) Branding should focus on SASEC’s products and not the SASEC subregion itself;

iii) Emphasize joint marketing first, then introduce measures to ensure product quality;

iv) Reposition the subregion as a tourist-friendly destination;

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v) Facilitate the development of a more competitive tourism industry; and

vi) Improve tourism links with neighboring countries.

With these strategic directions in view, the TWG has embarked on an agenda of subregional projects under seven programs.

Four programs focus on generic issues of common interest:

1) “Coordinated Marketing”;

2) “Enhancing Product Quality”;

3) “Facilitating Travel”; and

4) “Developing Human Resources.”

Two programs are based on the TWG’s agreed product development themes:

5) “Developing Ecotourism Based on Nature and Culture”; and

6) “Developing Buddhist Circuits.”

A seventh program is aimed at the private sector:

7) “Enabling the Private Sector.”

An eighth program focuses on the TWG’s future role in fostering national-level projects in key areas of subregional significance:

8) “Key Areas.”

The TWG uses a SASEC Tourism Development Matrix and Action Plan to keep track of the progress on the projects under these eight programs. At present, there are 27 subregional projects under programs one to seven and 33 potential projects for national-level implementation within 11 Key Areas in the Key Areas program.

Progress on active projects is discussed at each TWG meeting and, at the end of each meeting, the Development Matrix and Action Plan is updated. Between meetings, communication is maintained by email and by using a Yahoo Group on the Internet (Yahoo Group name: “SASEC Tourism Working Group”).

Subregional projects are overseen by the TWG and implemented by one or more lead countries in association with one or more development partners. Implementation of Key Area projects is left to individual governments, with the TWG maintaining a general strategic interest.

Within the framework of the TDP’s programs, new subregional project ideas may be suggested to the TWG at any time by interested stakeholders. Financing and implementation arrangements, including potential development partners identified, need to be associated with project ideas.

The cost of the subregional projects on the TWG’s agenda is in the order of $25 million. Potential national level projects in Key Areas are estimated at $50 million, making the total cost of the TDP in the region of $75 million. The original

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TDP’s economic and financial analysis suggested an economic return from the subregional programs and projects in the order of 35 percent. The NTOs have requested ADB’s on-going assistance to help coordinate and mobilize resources for implementation of the TDP.

1.2. SRI LANKA JOINS SASEC TOURISM WORKING GROUP

At the invitation of the four originating countries, Sri Lanka’s Ministry of Tourism attended the fifth meeting of the TWG at Dhaka in Bangladesh in February 2005 as an observer. At that meeting, the TWG agreed in principle to include Sri Lanka in its activities. Subsequently, Sri Lanka made a request to join the TWG and this request was endorsed by the SASEC Country Advisors meeting at Manila in July 2005.

Sri Lanka offered to host a workshop in Colombo to explore cooperation opportunities in tourism between Sri Lanka and SASEC. The TWG accepted Sri Lanka’s offer and, when Sri Lanka’s request for TWG membership was approved, the workshop was arranged to coincide with the sixth TWG meeting.

During the sixth TWG meeting in November 2005, Sri Lanka’s membership was welcomed as a major step towards expanded collaboration in the tourism sector in South Asia. The sixth TWG meeting agenda included a working session on Sri Lanka’s Membership of TWG. During this session, an outline of this Addendum to the TDP was presented to and endorsed by the TWG.

1.3. RATIONALE FOR AN ADDENDUM TO THE TDP

This Addendum has been prepared under ADB’s TA 6079-REG, titled “Exploring Sri Lanka’s Subregional Economic Cooperation Potential”. The objective of this TA was to assist the Government in preparing an analytical and empirical study for identifying subregional economic cooperation opportunities for Sri Lanka. The Draft Final Report of the TA identified tourism as one of the most promising sectors for regional cooperation between Sri Lanka and its neighbors.

When the TWG expressed interest in inviting Sri Lanka to participate in the SASEC tourism development program, initially as an observer and eventually as a member, ADB commissioned an international consultant to help identify specific areas for cooperation between Sri Lanka and the SASEC member countries in tourism. The consultant’s brief was to work with the Ministry of Tourism of Sri Lanka to explore potential opportunities for cooperation in the tourism sector between Sri Lanka and SASEC countries.

The primary purpose of this work was to build Sri Lanka into the SASEC TDP’s Development Matrix and Action Plan and to guide Sri Lanka’s future participation in TWG’s programs and projects. At its sixth meeting, the TWG reconfirmed its enthusiasm for fully incorporating Sri Lanka and endorsed a proposal that the consultant’s outputs should be recorded as an Addendum to the TDP.

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1.4. PREPARING THE ADDENDUM

As directed in detailed terms of reference, the following steps were taken in preparing the Addendum:

i) Reviewing, with the Ministry of Tourism, Sri Lanka’s existing national tourism development plans, priorities and institutional frameworks;

ii) Assessing, with the Ministry and leaders of the tourism industry, Sri Lanka’s likely future tourism patterns, with emphasis on the SASEC tourism themes of "ecotourism based on natural and cultural heritage " and "Buddhist circuits";

iii) Summarizing future tourism development needs in Sri Lanka, paying particular attention to the prospects for growth in the agreed themes;

iv) Comparing Sri Lanka’s plans and likely future tourism patterns with the TDP’s findings about the directions of tourism development in the BBIN subregion;

v) Revising the TDP’s Tourism Development Framework of programs and projects in order to incorporate Sri Lanka’s needs and take advantage of BBINS complementarities;

vi) Conducting a national level workshop in Colombo, hosted by the Ministry, at which an outline of the proposed Addendum was discussed with leaders of the Sri Lanka tourism industry;

vii) Discussions with current development partners and prospective new development partners about the proposed Addendum;

viii) Preparation of a draft action plan outlining a sequence of steps required to include Sri Lanka in the implementation of the TDP’s Tourism Development Framework;

ix) Liaison with the SASEC HRD TA Team on the prospects for incorporating Sri Lanka into current and future SASEC tourism HRD programs;

x) Presenting, jointly with the Secretary of the Ministry of Tourism, an outline of the proposed Addendum and proposed changes to the Development Matrix and Action Plan to the sixth SASEC TWG meeting in Colombo in November 2006 and making changes suggested by the TWG;

xi) Preparing a report including a Draft Addendum to the TDP.

The above process was an echo of the methodology of the original TDP. The aim was to quickly gain an understanding of Sri Lanka’s existing tourism development agendas, then involve Sri Lanka’s tourism industry and the TWG in creative exercises to generate ideas on how to add value to these agendas through Sri Lanka’s participation in the SASEC tourism program.

The workshop session at the sixth TWG meeting in November 2005 was an important step in the process. Dr. Prathap Ramanujam, Secretary of Tourism,

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Ministry of Tourism, and ADB consultant Mr. Les Clark made a joint presentation starting with background information on the history of Sri Lankan tourism and its plans and strategies for the future.

The TWG took considerable interest in the new Tourism Law passed in Sri Lanka’s Parliament on 18 October 2005. One aspect of the new Law is the introduction of a Tourism Development Fund to be financed by a one percent industry levy plus one-third of airport tax collections. The other SASEC countries discussed their experiences with industry levies and new tourism legislation. It was agreed that information on this topic would be shared amongst the NTOs.

The working session then heard reports on the previous creative planning sessions and consultations with the Sri Lankan tourism industry. The whole TWG then discussed the subregional projects in which Sri Lanka could become an active partner and some new projects that Sri Lanka could lead. These are detailed below and summarized in the attached Development Matrix and Action Plan.

1.5. FORMAT OF THE ADDENDUM

Section 2 of the Addendum establishes the broad context for Sri Lanka’s integration into SASEC’s tourism sector program. The new SASEC subregion is re-examined and an economic profile of Sri Lanka added. An overview of Sri Lanka’s tourism patterns is presented. Sri Lanka’s current tourism development agenda is explained. Sri Lanka’s key tourism attractions are noted. The major issues and constraints to tourism development in Sri Lanka are outlined. Section 3 then presents additions and adjustments to the SASEC Tourism Development Plan to include Sri Lanka. Annex I contains the latest SASEC Tourism Development Matrix and Action Plan, incorporating Sri Lanka.

1.6. ACKNOWLEDGEMENTS

All members of the TWG made contributions to the preparation of this Addendum. In addition, the following people went out of their way to assist in the creative planning sessions, during which all the ideas in this document arose:

Dr. Prathap Ramanujam, Ministry of Tourism, Mr. Vipula Wanigasekera, Sri Lanka Convention Bureau Ms Achini Dandunnage, Sri Lanka Convention Bureau Mr. Prema Cooray, Chamber of Commerce Mr. Dirk Grigson, Chamber of Commerce Mr. Vasantha Leelanda, Kells Hotels Management Services Ms Shiromal Cooray, Jetwing Hotels Ltd Mr. Malin Hapugoda, Aitken Spence Hotels Mr. Victor Abesekera, Hemtours

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2. CONTEXT

2.1. THE SASEC SUBREGION

For the purposes of this Addendum to the TDP, the subregion is now defined as Bangladesh, Bhutan, 13 of the North, East, and North East states of India (West Bengal, Bihar, Uttar Pradesh, Orissa, Jharkhand, Assam, Meghalaya, Manipur, Tripura, Mizoram, Nagaland, Arunchal Pradesh, and Sikkim), Nepal and Sri Lanka. In a tourism context, SASEC may still be described as the Eastern Himalaya / Bay of Bengal subregion of South Asia.

In the following analysis, distinction is made between the “SASEC subregion” as defined above, the “SASEC countries” (Bangladesh, Bhutan, India, Nepal and Sri Lanka), and “South Asia” (normally used to refer to the seven countries of SAARC - Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka). However, when using World Tourism Organization (UNWTO) data, “South Asia” also includes statistics from Afghanistan and Iran.

There is now widespread recognition that tourism is a fast-growing service industry in South Asia with rich tourism potential, notably in terms of its cultural and natural heritage. The governments of the original four SASEC countries have recognized the need to work together to promote the subregion as a tourism destination. There is strong support for this from the private sector.

Sri Lanka joining the TWG means the five countries of the SASEC tourism program have a collective population of 1.27 billion and an overall GDP of approximately $769 billion. The SASEC subregion, one of the world’s largest poverty belts, now has a collective population of 612 million. Since the original TDP was prepared, India’s economy has continued on a growth trajectory. India’s economy grew by 8.5 percent in the fiscal year 2003-04 and by 7.0 percent in 2004-05.

In a globalized world, such growth cannot occur in isolation. Neighbors must collaborate in welfare-enhancing synergies. In this regard, one of the SASEC program’s challenges is to create and maintain a regional environment that is conducive to growth. To this end, the tourism component of the SASEC program’s next phase will emphasize infrastructure requirements, travel facilitation and promoting public-private partnerships.

The whole SASEC program is about to move into a Third Phase. The activities of the earlier phases will continue. In addition, there will be emphasis on exploring cross-regional cooperation opportunities, particularly with BIMSTEC. By expanding to include Sri Lanka, the TWG is leading the way in this regard.

While the full implications of Sri Lanka’s membership of the TWG will take time to unfold, this Addendum records the TWG’s initial decisions about how to incorporate Sri Lanka. In line with the original TDP, the first step towards achieving this was to examine Sri Lanka’s economic profile, Sri Lanka’s tourism sector and the immediate tourism development agenda.

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2.2. SRI LANKA’S ECONOMIC PROFILE1

Approximately half the size of Bangladesh and Nepal, Sri Lanka has a population of 20 million (Table 2.1) and a net population growth of 1.3 percent per year.

Table 2.1: Total Area and Population of SASEC Subregion 2005

Country State Area sq. km.

Population (million)

Bangladesh 147,570 144.3 Bhutan 46,658 0.81 India 3,287,262 1080.26

Arunachal 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 27.68 Sri Lanka 65,525 20.06

Total SASEC countries 3,628,671 1,273.11

Total SASEC subregion (including Sri Lanka) 1,666,065 624.65

* Population of states based on India’s 2001 Census. Source for other population figures: CIA World Factbook 2006

In 2005, Sri Lanka’s GDP was approximately $22 billion2, adding almost three percent to the combined GDP ($829.83 billion) of the SASEC subregion countries (Table 2.2). The per capita income was on average about $1,030, notably higher than the average of $636.5 of all SASEC countries. On a purchasing power parity basis, Sri Lanka’s GDP per capita was $4,300 in 2005, which is also comparatively higher than other SASEC countries ($2,100 for Bangladesh, $1,400 for Bhutan, $3,400 for India and $1,500 for Nepal).

Since the 1990s, South Asia has experienced rapid growth, averaging 5.3 percent per year3. Sri Lanka shows similar growth patterns with an estimated GDP growth of 4.7 percent in 20054. This growth trend is likely to continue with outlooks suggesting a GDP growth of 5.8 percent for the period of 2006-2007. The current-account deficit will widen to 3.8 percent of GDP in 2006 as the debt relief related to the 2004 Indian Ocean tsunami is withdrawn and the current transfers surplus falls in

1 Statistics based on ADB Key Indicators 2005, if not stated otherwise. 2 CIA World Factbook 2006. 3 World Bank 2005, Regional Fact Sheet from the World Development Indicators 2005 – South Asia. 4 CIA World Factbook 2006.

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line with lower inflows of aid. The current-account deficit will narrow to 2.9 percent of GDP in 2007.5

In Sri Lanka’s economy, the service sector is of major importance at 53 percent of GDP, while industry accounts for just over 25 percent and agriculture 20 percent. In comparison, Bhutan has a relatively large industry sector output, at about 40 percent of GDP, with agriculture and service sectors each accounting for around 30 percent. India and Bangladesh have strong service sectors, accounting for about 50 percent, with agriculture and industry sectors each accounting for around 25 percent.

For Bangladesh, Bhutan, India and Nepal, agriculture is the dominant source of employment (more than 70 percent of jobs are dependent on agriculture). Sri Lanka’s workforce depends more on industrial production and service related activities fuelled by growth in telecom, tourism and financial services. Agriculture has lost its relative importance and officially accounts now for the jobs of only 33 percent of the working population. However, agriculture’s importance is larger than this figure indicates because of many links between agriculture, manufacturing and services.

Sri Lanka has the highest number of public employees per capita in Asia, with 12 percent of the labor force employed by the government compared with 4.7 percent in India. Sri Lanka’s intra-SASEC trade is predominantly with India, which is the leading importer into Sri Lanka and accounted for 14 percent of total imports in 2004. Bangladesh, Bhutan and Nepal do not feature as significant trading partners. The US, UK and Germany account for more than half of Sri Lanka’s exports.

Political stability has been a concern for Sri Lanka in past decades. A peace process initiated in 2001 was disrupted by a failure to agree on a mechanism to distribute aid after the Indian Ocean tsunami in 2004. The tsunami caused extensive damage. More than 30,000 people were killed and another 500,000 displaced. Much of the coastline was affected, leaving most fishing fleets destroyed, with total damages estimated at $1.5 billion. Tsunami relief and reconstruction have been initiated. Political volatility following the presidential election in 2005 is forecast to dampen tourism (Economist Intelligence Unit).

Table 2.2: GDP at Current Prices (in US$ billion) Country/Year 1990 2001 2002 2003 2004 2005

Sri Lanka 7.9 16.3 15.7 16.6 20.05 21.98

Bangladesh 37.2 45.5 45.4 47.2 55.95 64.85

Bhutan .277 0.465 0.517 0.593 0.613 (2003) 0.613 (2003)

India 306.0 450.1 476.5 516.8 685.95 735.6

Nepal 3.6 5.1 5.4 5.4 6.72 6.79

Total 355 517.5 543.6 586.6 769.28 829.83

Source: ADB Key Indicators 2005, CIA World Factbook 2006

5 Economist.com 2006, Country Briefing Sri Lanka Forecast.

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Table 2.3: Selected Indicators

Indicator Sri Lanka Bangladesh Bhutan India Nepal

Social Literacy Rate 92% 64% 42% 65% 58% Life Expectancy

69 yrs 58 yrs 66 yrs 65 yrs 59 yrs

Principle Language

Sinhala Bengali Dzonghka Hindi Nepali

Main Religions Buddhist 70%

Muslim 87%

Buddhist Hindu 82%

Hindu 81%

Hindu 16%

Hindu 12%

Muslim 12%

Buddhist 11%

Christian 7%

Buddhist 1%

Muslim 1%

Muslim 7%

Economic Currency Rupees Taka Ngultrum Rupees Rupees Exchange Rate, 2005 per US$

100.19 64.26 45.317 (2004)

43.6 73.674 (2004)

GDP Growth Rate, real, 2004 (percent)

5.4 6.3 8.7 6.9 3.5

Source: ADB Key Indicators 2005, CIA World Factbook 2006

Human development indices are generally higher in Sri Lanka than in other SASEC countries. For example, the literacy rate is 92 percent. Sri Lanka is ethnically and religiously diverse. Sinhalese make up 74 percent of the population and are mostly Buddhist. Ceylon Tamils, whose South Indian ancestors have lived on the island for centuries and who are predominantly Hindu, make up 12 percent, while Indian Tamils, as a distinct ethnic group, account for 5 percent of the population. Other minority groups include Muslim and Christian communities.

2.3. SRI LANKA’S TOURISM PATTERNS

Modern commercial tourism in Sri Lanka started in the mid-1960s with the advent of the jet-aircraft. Early development was led by private sector initiatives. The public sector policy framework for tourism was established in the Tourist Board Act No. 10 of 1966, the Ceylon Hotel Corporation Act No 14 of 1966 and the Tourist Development Act No. 14 of 1968.

In 1966, Sri Lanka registered 302,265 visitor arrivals. Arrivals increased steadily and exceeded 400,000 by 19836, when tourism was Sri Lanka’s fifth ranked

6 Arunatilake, Jayasuriya and Kelegama 2001, The economic cost of war in Sri Lanka, World Development, Vol. 29, No.9, pp 1483-1500.

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source of foreign exchange7. However, by 1983 the tourism industry had become another casualty of civil war. Arrivals dropped back to the levels of the 1960s.

A new growth momentum started in 2002 as a result of the peace process and renewed promotional activities led by the Sri Lanka Tourist Board. By 2004, visitor arrivals reached a new height of 566,202, a 13.1 percent increase over the previous year. The total number of nights spendt by tourists in 2004 was estimated at 5,742,000 and the average duration of stay was 10.1 nights.

Total tourism earnings in 2004 amounted to US$416 million, an annual increase of 22.4 percent over US$340 million in 2003. This significant growth was in part due to an increase in the average daily visitor spend, which rose to US$72.2 in 2004 from US$66.8 in 2003, an 8.1 percent increase. Tourism’s importance to Sri Lanka’s economy is indicated by the fact that it is now the fourth largest exchange earner, overtaking traditional foreign exchange earners such as rubber, coconuts and gems.

However, tourism’s contribution to the total foreign exchange earnings is, at 4.6 percent, still relatively small. By the end of 2004, the total number of persons employed directly in the tourism sector was 53,776 (this increases to more than 125,000 when indirect employment is included), 63.9 percent of whom were employed in the accommodation and catering sectors.

Table 2.5: Visitor Arrivals in Sri Lanka by Nationality, 1998 to 2005

Country 1998 1999 2000 2001 2002 2003 2004 2005

North America 18,450 18,517 17,352 18,304 20,004 25,099 30,654 46,457

Canada 7,866 7,935 7,521 7,804 8,337 11,109 14,974 21,185

USA 10,584 10,599 9,831 8,500 11,667 13,990 15,680 25,272

Latin America. & Carib.

378 336 342 400 549 636 715 705

Western Europe

240,876 275,871 261,011 204,510 200,676 255,179 285,366 227,191

France 26,937 34,491 26,120 20,989 19,980 28,576 30,422 26,653

Germany 73,986 77,340 70,635 60,370 55,137 58,875 58,932 46,350

Italy 15,891 19,818 18,719 13,283 12,171 15,648 17,984 10,192

Netherlands 23,100 29,682 22,632 11,257 11,763 18,212 21,487 15,156

UK 68,514 81033 84,807 68,554 67,932 93,306 107,042 92,629

Eastern Europe

7,098 6,255 6,840 7,045 8,046 10,600 14,259 9,290

Middle east 3,876 4,815 4,347 5,364 6,462 6,759 9,486 10,236

Africa 750 1,236 891 902 1,545 1,925 1,759 2,340

7 Richter 1999, After political turmoil: lessons of rebuilding tourism in three Asian countries, Journal of Travel Research, Vol 38, No. 1, pp 41-46.

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Asia 97,083 114,261 91,409 89,343 142,578 177,377 196,023 223,351

India 36,489 42,267 31,851 33,932 69,996 90,639 104,390 113,323

Japan 13,776 16,353 10,287 9,241 13,566 17,178 19,747 17,148

Maldives 7,281 7,587 7,941 8,975 9,855 11,577 15,201 24,576

Australasia 12,552 15,132 18,222 12,926 3,311 23,067 27,940 29,540

Total 381,063 436,440 400,414 336,794 393,171 500,642 566,202 549,308

Annual Report of the Sri Lanka Tourism Board 2005

The impact of the 2004 Indian Ocean tsunami on Sri Lanka’s tourism sector

was severe. More than 100 hotels were badly damaged. Estimates suggest Sri Lanka missed out on about 100,000 visitors. However, the tourism sector seems to have recovered relatively faster than in other Asian nations hit by the tsunami. Within two weeks of the tsunami, Sri Lanka’s government initiated a US$320 million recovery plan that included an extensive infrastructure and construction program, investment in community development and duty waivers for the industry. In addition a marketing recovery program, “Bounce Back Sri Lanka”, targeted Sri Lanka’s 11 key target markets. Investor and visitor confidence seems to be reestablished. Visitor numbers reached nearly 549,308 in 2005. Several international hotel and resort brands have recently moved to establish a presence in Sri Lanka.

Table 2.5 shows that Sri Lanka historically had a high dependence on Western European markets, which accounted for 63.2 percent of all visitors in 1999, but shrunk to 41.4 percent in 2005. The current main source countries in Western Europe are UK (16.9 percent), Germany (8.4 percent) and France (4.9 percent), and all were negatively affected by the tsunami. Recent robust growth has come from South Asia, in particularly India, which is now the single largest source country providing 20.6 percent of all arrivals, and having overtaken the UK. Other growth markets include North America, North East Asia (which includes China), and Australasia (particularly from Australia).

As illustrated in Table 2.6, intra-regional arrivals to Sri Lanka are increasing in importance, contributing 20.9 percent of all arrivals in 2005. India accounted for 97.5 percent of this intra-regional tourist traffic in 2004.

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Table 2.6: Visitor Arrivals from SASEC Countries to Sri Lanka, 1999 to 2005

Country 1999 2000 2001 2002 2003 2004 2005

All arrivals in Sri Lanka

436,440 400,414 336,794 393,171 500,642 566,202 549,308

SASEC arrivals from:

Bangladesh 1,140 1,218 1,738 1,518 1,851 1,760 N/A

Bhutan N/A N/A N/A N/A N/A N/A N/A

India 42,267 31,851 33,932 69,996 90,639 104,390 113,323

Nepal 570 528 512 86 977 890 N/A

Total SASEC arrivals

43,977 33,597 36,182 71,600 93,467 107,040 Est. 115,000

SASEC as % of total arrivals

10.1 8.3 10.7 18.2 18.7 18.9 Est. 20.9

Annual Report of the Sri Lanka Tourism Board 2005

Over the past decade, the motivational patterns of visitors to Sri Lanka have undergone considerable change. While pleasure is still the main purpose of travel to Sri Lanka, accounting for 78.2 percent of arrivals in 2004, this has declined from 95.1 percent in 1995. In 2004, those who visited for business constituted 10.6 percent, visiting friends and relatives (VFR) 6.4 percent, convention and meetings 2.5 percent and religious and cultural 1.5 percent. Most pleasure travelers originated from Western Europe (57.8 percent), followed by Asia (27.4 percent) and North America (4.7 percent). Of all business travelers, 70.7 percent were from Asian countries. India, Sri Lanka second largest market, has the motivational pattern of 47.6 percent leisure, 26.5 percent business, 7.6 percent meetings and conventions, 11.4 percent VFR and the balance of 7 percent for other purposes.

Sri Lanka’s tourist flows are characterized by strong seasonal fluctuations, with a high season from November to March and a low season in May and June. The seasonal patterns are created by a monsoon period from late May to July and European tourists favoring Sri Lanka for a winter holiday. Recent figures indicate an increase in travels in the summer season, arguably caused by growth in business travel, particularly from India.

Almost all visitors to Sri Lanka arrive by air (99.9 percent) at Bandaniyake International Airport (BIA) near Colombo, the only international air access port in Sri Lanka. In 2004, a total of 26 scheduled airlines operated regular services to Sri Lanka, accounting for 96.1 percent of the total visitors to the country. Of the total visitors, 37.2 percent embarked from a point in Europe before arriving in Sri Lanka and 39 percent returned back to Europe directly. Europe produced just over 50 percent of total arrivals in 2004, but only 32.9 percent of European visitors traveled to Sri Lanka directly. This suggests many European visitors combine other countries with their visit to Sri Lanka.

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In 2004, Sri Lanka had 14,322 rooms in 240 hotels and 3,318 rooms in supplementary accommodation units, such as guesthouses, motels and inns. Most tourist accommodation is located in the South Coast region, accounting for 39.3 percent of the capacity, followed by the Colombo region at 18.6 percent, the Greater Colombo region (including Negombo) at 18 percent, the Ancient City region at 17.4 percent and the balance of 6.7 percent in the Hill Country and the East Coast regions. The average occupancy rate of tourist accommodation was 59.3 percent in 2004, with the highest occupancy levels recorded in Colombo City (75.5 percent) and the Ancient Cities region (60.4 percent).

Tourist Flows to Sri Lanka

Annual Report of the Sri Lanka Tourism Board 2005

2.4. SRI LANKA’S TOURISM DEVELOPMENT AGENDA

Historically, successive governments considered tourism to be a thrust sector and an important industry for community-level development. Notwithstanding this, tourism remains primarily private sector-driven. From time to time, the industry is afforded concessions by government.

In 1992, a ten-year tourism masterplan (1992-2001) was prepared with assistance from UNWTO and funding from UNDP. The masterplan envisaged “a moderate pace for tourism development that takes into consideration the socio-cultural and environmental capacity to optimize economic benefits and minimize potential adverse impacts”.

In 1998, a Presidential Task Force reported on the tourism sector. Between 2000 and 2001, a series of studies were conducted by the USAID-sponsored Competitiveness Initiative. In 2002, a national industry committee prepared a “Five-Year Strategy for Growth”. Subtitled “Transforming the Sri Lankan Tourism Industry”, this document contained a substantial framework of tourism strategies designed to last until the end of 2006. It remains a primary guide for tourism policy. The strategies generally favor private sector-led development, with government in the role of facilitator and regulator. Table 2.7 summarizes strategies.

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One immediate outcome of the strategy was the preparation and, in October 2005, passing of a new Tourism Law. The new Law makes some significant structural changes.

A Tourism Promotion Authority (TPA) will replace the Ceylon Tourism Board. The TPA will undertake: tourism product development; standards and specifications; international relations; community development; handling the Tourism Development Fund; and management and finance.

A Tourism Development Fund will be supported by every registered tourism establishment, such as guesthouse, hotel, restaurant, water sport operation, textile and souvenir shop. Each establishment will contribute 1 percent of annual turnover to the Fund. In addition, one third of airport departure taxes will go to the Fund. The Fund will disperse money for the TPA, for human resource development, for marketing and promotions and MICE tourism development.

A Tourism Marketing and Promotion Bureau will be created as a public / private partnership to undertake the marketing work previously handled by the Ceylon Tourism Board. Funding for this purpose will come from the Tourism Development Fund.

A Sri Lanka Institute of Tourism and Hotel Management will be created by restructuring an existing government hotel school. The new Institute will be an autonomous body managed by an independent Board of Management with a mixture of public and private members.

A new Sri Lanka Convention Bureau will be a private sector-driven body that undertakes meetings, incentive travel, conventions and exhibitions. The finances required for this will come from the Tourism Development Fund.

The current Vision of the Sri Lanka tourism industry is:

To make Sri Lanka the most sought after destination in the Indian Ocean by winning the hearts of the world community and the local populace and offering the highest values of authentic experiences in its unique setting. Our greatest treasures, those of human and natural resources, cultural values and ethos will be fundamental in transforming Sri Lanka into a centre of excellence of tourism. By preserving these assets for present and future generations we will sustain Sri Lanka as the home of a cultural rainbow of people living ordinary lives in extraordinary ways.

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Table 2.7: Summary of Core Strategies in “Transforming the Sri Lankan Tourism Industry, A Five-Year Strategy for Growth, April 2002”.

Core Strategies Key Components

High Growth • National level promotions with the participation of the entire industry • Consistent and complementary branding of Sri Lanka’s products • Promotions to new markets - e.g. South Asia, Middle East, East Asia • New sales channels, as alternative to traditional tour operator channels • Dual destination promotion through regional co-operation • Effective publicity about the security situation • Re-negotiation of bilateral air agreements with key generating markets

Value Addition • Develop suitable themes upon which Sri Lanka can be positioned • Zonal planning for sustainable development, to avoid ad-hoc

development • Standards and licensing procedures for specialized segments -

ecotourism, ayurveda and adventure • Promote domestic tourism • Promote local arts and crafts • World class tourism training institutes to meet local and regional demand • Policy on sustainable development, environment and coast conservation • Encourage excellence through national-level recognition • Liberalize state-controlled resources in the tourism sector

Creation of a Regional Hub

• Position Sri Lanka as a gateway for South Asian tourism and business • Transform BIA into a world class airport with competitive pricing • “Visa on arrival” for more countries • Facilitate entry of more airlines to the country • Develop duty free shopping facilities • Create necessary infrastructure for cruise tourism • Develop Colombo as an attractive entertainment centre

Supportive factors • Better transport options for tourists including domestic flights • Remove tax holidays for new hotel constructions and instead permit

double deduction of cess fund contributions & capital allowances on refurbishment costs for existing hotels

• Deploy captive government funds at market rates of interest for development of the industry

• Tourist information material and public amenities at tourist venues • Ensure the safety and wellbeing of tourists and the local population • Community-based tourism development programs • Upgrade infrastructure at tourism areas, e.g. hospitals and roads • Duty free import of material required for hotel refurbishment for a period

Fostering collaborative networks and partnerships among all key industry participants

• A team of people to be appointed by the promotional and regulatory authorities for the purpose of forging collaborative networks and partnerships among all industry stakeholders

Policy implementation

• Appointment of a senior official to co-ordinate and implement policy measures aimed at reviving the industry.

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The current Mission of the Sri Lanka tourism industry is:

Transform Sri Lanka into a high yield, high quality destination catering to the high-end traveler.

Promote tourism as the foremost foreign exchange generating and employment creating economic activity in the Sri Lanka economy.

Make tourism the best partner in the socio-economic development of the country by restoring pride in local culture and by attracting top dollar for local products and services thereby raising the standards and promoting social contentment and maximum benefits to the community at large.

Showcase Sri Lanka as a destination with excellent management capabilities and facilities for meetings and conferences in the South Asian region.

Become the preferred entry and transit point in South Asia.

2.5. TOURISM ATTRACTIONS

Key tourism attractions in Sri Lanka are centered on cultural heritage and natural environment sites at convenient distances. Sri Lanka features seven World Heritage Sites, six dating back 2000 years. National parks are well developed. Many national parks are linked to cultural attractions. This combination offers excellent opportunities for ecotourism.

Among the cultural heritage sites are important Buddhist places. Buddhism has been practiced continuously for more than 2,500 years and Sri Lanka preserves strong Buddhist traditions. Buddhist temples and monasteries are active cultural institutions, attracting pilgrims and tourists.

Sri Lanka’s Buddhists believe Lord Buddha visited the island three times during his lifetime and proclaimed Sri Lanka a receptacle that will safeguard his teachings for the future. The Kelaniya Raja Maha Vihara, situated about 12 km from Colombo, is one of the most sacred places, made sacred by a visit by Lord Buddha at the invitation of King Maniakkhika.

About 220 km from Colombo is Sri Pada, Sri Lanka’s most sacred mountain, important to both Buddhists and Christians. It is believed that Lord Buddha, during his third visit to Sri Lanka, placed his footprint on the summit of the mountain. The pilgrim season to Sri Pada traditionally starts on the full moon of December and ends on the full moon of April.

A recent new development is that Sri Lanka is cultivating a reputation as a luxury tourist destination. Over the last three years, a variety of up-market villas and boutique hotels have been developed. This has been complemented by investment from international hotel and resort brands.

Ecotourism is viewed as a field with growth potential, especially focused on the seven UNESCO world heritage sites and 15 national parks. In this regard, a developing product trend is an emphasis on soft adventure tourism and health tourism, particularly incorporating the traditional practices of Ayurveda.

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2.6. ISSUES AND CONSTRAINTS

Sri Lanka tourism is aiming for high growth. Sri Lanka seeks to become a gateway to South Asia. To achieve this, the industry believes it must improve air access, undertake more up-market promotion and enhance regional cooperation. Sri Lanka already maintains strong ties with the tourism sector programs in SAARC and BIMSTEC.

The industry is also aiming for value addition. It believes this requires careful repositioning of the country’s image. This must be complemented by maintaining high standards in new tourism product development. Flagship projects are required. Human resource development is required to ensure high service standards. Carefully planned, sustainable tourism development is required if the industry is to attain the high value position it seeks.

To become a regional hub and a gateway will require upgrading facilities at the International Airport, including improved duty free shopping facilities. Invigorated domestic air services, improved domestic airports and improved cruise ship facilities will also be required.

Other tourism infrastructure development is also needed. In particular, highways connecting the airport and major tourism resorts need upgrading, better accommodation facilities are required at key sites, community-based tourism products need to be developed and medical facilities need to be improved. Sri Lanka’s tourism industry recognizes the need for development partnerships to achieve this infrastructure development.

In preparation for further ecotourism development a Sri Lanka Ecotourism Foundation has been established and ecotourism policy, regulations and guidelines have been formulated. In this field, the tourism industry believes the time is right to seek linkages with successful ecotourism operations throughout South Asia and to make a concerted effort to lift standards in this field to the highest possible level.

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3. ADDITIONS AND ADJUSTMENTS TO THE TDP

3.1. PROGRAM 1 – COORDINATED MARKETING

1.1 Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits

Project Description: A marketing campaign to brand SASEC’s premier “Nature, Culture, Adventure” ecotourism and “Buddhist Heartland” products is targeting international and regional tour operator networks through NTOs’ pooled resources. In style, the promotions echo the “Incredible India” campaign. Internet-based marketing material has been produced, as well as two promotional brochures, six posters and a CD ROM, in six sub-themes: “Trekking in the Himalaya”; “The Great River Lands”; “Adventure Tourism in South Asia”; “Footsteps of Lord Buddha”; “Living Buddhism”; and “Buddhist Art and Archaeology in South Asia”.

Current Status: This project has been successfully completed, with collateral developed and distributed to the four countries. NTOs are currently distributing the collateral through their individual networks and measuring its impact. NTOs are encouraging travel agents and tour operators to market subregional products. It is hoped that selected operators will finance and advertise in the collateral in future, thus contributing to its impact and sustainability. There will be opportunities to involve Sri Lanka in future printings of the collateral and in future promotional events.

Sri Lanka’s Interests: Sri Lanka is willing to contribute funds to future printing of updated collateral that will include information and images of Sri Lanka. Sri Lanka is also willing to participate in joint destination marketing seminars in source markets with development partners to distribute existing and future collateral.

Immediate Action: All countries are to provide updated material to India. Based on this, India will update the website and reprint the brochures and posters, including Sri Lanka. NTOs will actively involve the private sector in joint marketing.

1.2 Regional Marketing with SATTE

Project Description: Instead of creating a subregional industry forum, the TWG is building on the South Asia Tourism and Travel Exchange (SATTE), an established subregional industry showcasing event and mart. A SASEC presence at SATTE promotes SASEC product brands to the subregional industry, including those in touch with SASEC’s target inter- and intra-regional markets.

Current Status: A one-day SASEC Marketing Session led by the UNWTO was held at SATTE 2005. SATTE organizers have offered space for a SASEC pavilion at SATTE 2006 to be held 20-23 April in New Delhi.

Sri Lanka’s Interests: Sri Lanka is vitally interested in subregional marketing and willing to participate with the other SASEC NTOs at SATTE.

Immediate Action: Sri Lanka, along with all other NTOs, will confirm to India and SATTE organizers its agreement to joint participation at SATTE 2006. India will then lead the organization of the SASEC pavilion and/or a one-day Marketing Session at SATTE 2006 similar to that at SATTE 2005.

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1.3 Harmonizing Arrival Statistics

Project Description: This project addresses the common need for an accurate picture of intra-regional travel. Currently, intra-regional arrivals are not all counted in accordance with the World Tourism Organization (UNWTO) norms. A program of needs assessments and design of appropriate, statistics-gathering methods at a national level will be followed by training for NTOs and other agencies.

Current Status: NTOs are studying the UNWTO Guide and will report to UNWTO. UNWTO needs to know details of how each country’s system for data collection and compilation stands vis-à-vis international norms in order to design a subregional training workshop as a first step in the program to harmonize arrival statistics.

Sri Lanka’s Interests: Sri Lanka is currently working on its own collection systems and is willing to participate with the other SASEC NTOs in the subregional training workshop.

Immediate Action: All NTOs are to review the UNWTO Guide and report to UNWTO on the gaps in its systems in relation to collection of tourism statistics based on UNWTO’s international norms. UNWTO will then design a three to five day subregional Harmonizing Arrival Statistics Workshop and confirm date and venue, via the project leader, Bangladesh.

1.4 Events Calendar

Project Description: A calendar of cultural, sporting and religious festivals and events has been produced for the SASEC subregion. The calendar has been developed in print in the format of a matching poster, and is proposed in a form suitable for posting on websites.

Current Status: Project Leader India prepared and distributed an Events Calendar 2005 based on information provided by NTOs. In the form of a red and yellow poster, the Calendar was complementary to the collateral produced under project 1.1. NTOs used the Events Calendar 2005 in national and subregional promotions, including at ITB 2005 and SATTE 2005.

Sri Lanka’s Interests: Sri Lanka is willing to contribute to future SASEC Event Calendars.

Immediate Action: All NTOs, including Sri Lanka, are to provide 2006 and 2007 updates to the calendar of events and a brief description of each event to India. Based on this, India will redesign, update and reprint the events’ poster and website (www.visitsouthasia.org), including Sri Lanka, then distribute to all NTOs.

3.2. PROGRAM 2 – ENHANCING PRODUCT QUALITY

2.1 Product Standards and Industry Codes of Conduct in Ecotourism and Buddhist Circuits

Project Description: Heightened demand through SASEC collaborative marketing efforts needs to be supported by consistent quality of product delivery across the subregion. There is a common interest in developing consistent and

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effective product standards and industry codes of conduct, benchmarked on international best practice.

Current Status: ICIMOD and SNV have prepared a draft proposal for Sustainable Mountain Tourism in the Himalaya (SuMiT) that addresses the issue of improving product standards. Other agencies, such as WWF, are also engaged in relevant activities.

Sri Lanka’s Interests: Sri Lanka believes the maintenance of high subregional standards is important. In particular, Sri Lanka is concerned about maintaining high standards and international credibility of its ecotourism products.

Immediate Action: All NTOs are cooperating with SNV and ICIMOD in the further development of the Sustainable Mountain Tourism in the Himalaya (SuMiT) project. Project leader, Nepal, will continue to canvass interest in product standards and industry codes of conduct amongst relevant agencies.

2.2 Green Labeling and other Quality Assurance for High-end Nature / Culture Tourism

Project Description: This project will involve investigation of green labeling and other quality assurance programs, to decide which, if any, may be suitable for SASEC, with particular emphasis on SASEC’s high-end nature and cultural ecotourism products.

Current Status: This project idea was introduced by Sri Lanka at the 6th TWG meeting.

Sri Lanka’s Interests: Sri Lanka is currently developing a range of high-end ecotourism products (e.g. a Rainforest Ecolodge) and is keen to associate these with similar products elsewhere in the subregion. Sri Lanka is willing to lead this project.

Immediate Action: Sri Lanka will prepare a project design for the next TWG meeting. ADB will assist. The overall aim will be to improve the quality of the subregion’s ecotourism products in general and in particular to enhance the subregion’s reputation for high-end ecotourism products.

2.3 Enhancing Quality in Health Tourism

Project Description: This project, which may become closely linked to proposed project 2.2, will focus specifically on standards for such products as Ayurveda and Himalayan Health Spas.

Current Status: This project idea was introduced by Sri Lanka at the 6th TWG meeting.

Sri Lanka’s Interests: Recognizing that many health tourism products of the subregion share a common heritage, Sri Lanka’s tourism industry wishes to promote the highest possible subregional standards for iconic health products such as Ayurveda and Himalayan Health Spas. These products are a comparative advantage of the subregion and their reputation should be nurtured. Sri Lanka is willing to lead this project.

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Immediate Action: Sri Lanka will prepare a project design for the next TWG meeting. ADB will assist. The overall aim will be protecting and enhancing the subregion’s reputation for a unique range of health tourism products.

3.3. PROGRAM 3 – FACILITATING TRAVEL

3.1 Eastern Himalaya Caravan

Project Description: This project was conceived as a way to help NTOs illustrate the tourism potential of cross-border tourist routes to other government agencies, and raise the profile of new travel routes with the travel media. An event was to be organized by the private sector based on an overland “caravan” of vehicles exploring and celebrating the potential of new tourist routes, and creating publicity along the way aimed at the travel media, trade and target markets.

Current Status: Because this idea was in effect implemented by the Indo-ASEAN Car Rally, the project has been put on hold until NTOs feel the time is right to revisit the notion of a caravan specifically for SASEC.

3.2 Bagdogra Tourism Gateway and Hub

Project Description: This project is based on the idea that opening Bagdogra as an international air hub will significantly benefit access to tourist areas in Darjeeling, Sikkim and India’s North East States. Also benefited would be access to Bhutan, north Bangladesh and east Nepal. Initially, a joint, subregional Bagdogra Tourism Gateway and Hub Planning Study will define the tourism benefits of developing Bagdogra as an international airport.

Current Status: India is about to commission a four-month study to further identify priorities. Bangladesh has requested that Syedpur airport be considered.

Sri Lanka’s Interests: Supportive.

Immediate Action: India will commission the four-month study. India will send the terms of reference to all NTOs in advance and ensure the consultants contact the NTOs for inputs.

3.3 Reducing Impediments to Subregional Travel

Project Description: This project takes a long-term, macro view of removing the barriers to SASEC tourism. Key problem areas to be addressed include: border formalities; visas and permits; airline access; currency use; and tour operator regulations. Through a series of studies, workshops and seminars, key impediments will be identified and solutions found.

Current Status: The TWG is considering an idea for the long term of a "South Asian Traveler" facilitation system that will assist travel for identified, pre-booked groups. Also under consideration is the idea of a “Buddhist Heartland Visa”. SAARC tourism, which has been concerned with subregional visa issues, is based in Colombo.

Sri Lanka’s Interests: Sri Lanka is an advocate for improving subregional air linkages and is willing to participate in efforts to relax entry requirements and develop

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joint visas. Sri Lanka likes the idea of the “South Asia Traveler” and “Buddhist Heartland Visa” concepts, and is willing to help lead this project.

Immediate Action: ADB will explore the possibility of a study on how other destinations reconcile security concerns with visa relaxation. In the meantime, NTOs will continue advocacy with their respective governments for visa relaxation to facilitate tourism.

3.4 Asian Highway Improvements Advocacy

Project Description: Travel in the SASEC subregion is constrained by bad roads, poor linkages and minimal wayside amenities. This project aims to capture the voice of SASEC tourism in support of tourism-related improvements to the Asian Highway. Asian Highway tourism development ideas with merit will be adopted and promoted.

Current Status: India has implemented infrastructure development projects on Buddhist circuits, with JBIC support. The TWG has agreed that similar projects could be developed for other subregional Buddhist circuits, including improvement of roads infrastructure, with the support of ADB and JBIC. BIMSTEC has also approached ADB about a study of connectivity between South Asia and Thailand.

Sri Lanka’s Interests: Sri Lanka will be particularly interested in the air linkages component of any studies of intraregional and interregional connectivity.

Immediate Action: ADB will liaise with BIMSTEC about the proposed study on connectivity between South Asia and Thailand. In the meantime, NTOs will continue to investigate infrastructure development project opportunities, particularly in the Key Areas identified in the TDP and particularly projects that are along similar lines to the India / JBIC example.

3.4. PROGRAM 4 – DEVELOPING HUMAN RESOURCES

4.1 Encouraging the Network of Asia Pacific Education and Training Institutes in Tourism (APETIT) to Engage with South Asia

Project Description: Facilitating the process of upgrading SASEC’s human resource development in tourism is a priority in all countries. SASEC training institutions require technical support. Basic skills training throughout the subregion needs to be benchmarked against international best practice. Through UNESCAP, APETIT has been asked to provide leadership in evaluating national tourism training capabilities, identifying needs and opportunities for technical assistance, implementing train-the-trainer (ToT) programs and identifying needs for refurbishment of institutions.

Current Status: An APETIT regional meeting in Hanoi 18-21 October 2005 included consultations involving six APETIT centers from SASEC countries.

Sri Lanka’s Interests: Sri Lanka needs ToT programs for its new Institute of Tourism and Hotel Management. Sri Lanka is willing to join Bangladesh in leading this project.

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Immediate Action: All NTOs will forward comments to UNESCAP (APETIT) on its status report presented at the 6th TWG meeting. Bangladesh and Sri Lanka will encourage SASEC training institutes that are already members of APETIT to begin active networking on a subregional basis.

4.2 South Asian Host

Project Description: This project aims to contribute directly to stimulating subregional tourism through “good host” training to encourage friendliness, increase awareness of tourism and foster attitudes of “neighborliness” in front-line people. "South Asia Host" courses will train airport staff and officials, transport workers, hotel and restaurant / café staff. Trial, on-site courses in selected gateway cities will pilot the scheme. If successful, subsequent courses will be offered elsewhere on a user-pays basis.

Current Status: This project is being taken forward by the ADB HRD TA as Course #1: South Asian Host. A three-day ToT workshop for 20 participants will take place in India 4-6 May 2006.

Sri Lanka’s Interests: Sri Lanka is interested in this project and will explore the prospects of finding its own funding to send participants from Sri Lanka to the May 2006 course.

Immediate Action: Detailed actions and deadlines are included in the ADB HRD TA’s common minimum training program.

4.3 Training for Travel Media

Project Description: This project recognized that SASEC tourism needs an effective industry media. It provided a one-off, customized training course in travel-trade writing for the tourism and travel journalists of the subregion.

Current Status: This project has been completed. A two-day Travel Media Workshop took place in August 2005 in Kathmandu for 35 participants from all four countries, organized by Nepal with trainers from PATA and UNWTO.

4.4 Project Management Training for NTOs, LTOs

Project Description: This project aims to up-skill national tourism organizations (NTOs) and local or state-level tourism organizations (LTOs) in project management. Increased confidence in project management skills will ultimately improve the success of all TWG’s programs. A ten-day course is envisaged, with 10 to 15 participants.

Current Status: This project has been taken forward by the ADB HRD TA as Course #6: Project Management Training for NTOs / LTOs. A seven-day workshop with field trip for 5 participants each from the original four countries will take place in Kathmandu in May 2006.

Sri Lanka’s Interests: Sri Lanka is interested in this project and will explore the prospects of finding its own funding to send participants from Sri Lanka to the May 2006 course.

Immediate Action: Detailed actions and deadlines are included in the ADB HRD TA’s Common Minimum Training Program.

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4.5 HRD and Capacity Building in Tourism (ADB)

Project Description: This is an ADB TA designed to support HRD in the tourism sectors of SASEC countries, including by promoting networking between the tourism training institutions of the subregion.

Current Status: The TA has developed a common minimum training program, course structures and a training calendar for ToT in the four SASEC countries of Bangladesh, Bhutan, India and Nepal. The TA is supporting the development of a subregional HRD Strategy and is assisting NTOs and development partners to conduct a series of subregional training workshops.

Sri Lanka’s Interests: Sri Lanka will seek funds for sending participants to training workshops scheduled under this TA. (Only travel, transportation, accommodation and subsistence costs will be required, as the actual workshop costs are covered under the TA budget.) Sri Lanka will be a willing participant in any future HRD projects.

Immediate Action: Details of the training workshops are included in the most recent versions of ADB HRD TA’s planning documents (e.g. “Training Calendar” and “Common Minimum Training Program Implementation Plan”). Sri Lanka will advise the TA Team about which workshops it would like to participate in.

3.5. PROGRAM 5 – DEVELOPING ECOTOURISM BASED ON NATURE AND CULTURE

5.1 Trekking in the Himalaya

Project Description: Trekking areas are constrained by access, security and a lack of marketing. This project is promoting “The Great Himalayan Trail” concept to link marketing and product development, opening new circuits and cross-border treks, exposing poor rural communities to the benefits of tourism. This will involve joint marketing, addressing cross-border issues and preparing remote villages for tourism.

Current Status: An alliance of ICIMOD and SNV has prepared and circulated a draft proposal for the Sustainable Mountain Tourism in the Himalaya (SuMiT) that includes elements of the Great Himalayan Trail. The alliance is seeking funding for the project, which incorporates the TWG’s objectives. Other agencies, including WWF Nepal and WWF USA have expressed interest in coordinating ecotourism trekking initiatives with the TWG’s initiatives. Bhutan has suggested that its centenary celebrations in 2008 would be a suitable target date for the Great Himalayan Trail to be launched in Bhutan.

Sri Lanka’s Interests: Sri Lanka is interested in learning from the ecotourism elements of this project.

Immediate Action: On behalf of the TWG, Nepal will continue to canvass interest in funding the Great Himalayan Trail amongst agencies associated with ecotourism. ADB is preparing the scope of a TA grant to study the feasibility of a SASEC tourism development project, which could include the Great Himalayan Trail.

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5.2 Ecotourism in Ganga-Brahmaputra

Project Description: This project will establish the Ganga-Brahmaputra as a tourism destination, based on wildlife and river-based tourism. Cooperation in overcoming barriers to tourism and joint promotion will heighten demand and ultimately reduce poverty. The private sector will be encouraged to develop new products.

Current Status: A 15-room cruise ship has started operating on the Brahmaputra River from Guwahati in Assam. Its operations could be extended across the border into Bangladesh. Bangladesh is happy to pursue this possibility, subject to a bilateral agreement and a multimodal study currently being discussed under SAARC activities.

Sri Lanka’s Interests: Sri Lanka is not likely to be involved in this project.

5.3 Integrated Project on Adventure Tourism

Project Description: This project seeks to expand adventure tourism through marketing and professional development. The adventure travel industry generally targets domestic youth, students and corporate groups. A South Asia Network of Professional Associations of Adventure Tourism Operators will be formed. New adventure tourism destinations will be promoted and a subregional adventure tourism training facility championed.

Current Status: India has established an Institute for Adventure Sports in Sikkim as a center of excellence in this field and has invited the participation of other countries in the Institute’s activities.

Sri Lanka’s Interests: Sri Lanka is keenly interested in this project and in promoting the adventure tourism theme within SASEC. Sri Lanka has recently formed a national adventure tourism association and supports the idea of a SASEC network of associations.

Immediate Action: NTOs will discuss this project with their national adventure tourism operators and their associations, and report comments and ideas to the seventh TWG meeting.

5.4 South Asia Sustainable Tourism Forum

Project Description: This project is founded on the idea that South Asia could be a world leader in ecotourism. To achieve this, it is necessary to bridge the divide that currently exists between resource managers, INGOs active in ecotourism projects and the ecotourism operators within the subregion’s tourism industries. An annual South Asia Sustainable Tourism Forum (STF) has been conceived to address this.

Current Status: SNV, ICIMOD and Bangladesh organized the first SA STF in Dhaka on 26 February 2005. A second STF will be held on the sidelines of India’s proposed Global Ecotourism Conference and Ecotour to be held in Delhi in 2006.

Sri Lanka’s Interests: Sri Lanka envisages actively participating and assisting in future STFs.

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Immediate Action: India will prepare a plan of action for organizing the second SA STF in New Delhi, to be implemented by SNV, ICIMOD and WWF. Nepal will ask PATA to assist a public/private/partnership dialogue session at the second Forum.

5.5 SASEC Integrated Product Development

Project Description: At the TWG meeting in Thimphu in 2004, UNWTO suggested that an Integrated Product Development Plan for Ecotourism Based on Nature and Culture could be useful to structure all projects under Program 5. The Plan would identify ecotourism product development projects, both subregional and national, for implementation under the guidance of the TWG.

Current Status: UNWTO has asked for further clarity on the next steps to be taken before approaching UNDP for funding.

Sri Lanka’s Interests: Sri Lanka will be a willing participant in this project.

Immediate Action: UNWTO and the NTOs will discuss next steps at the seventh TWG meeting.

3.6. PROGRAM 6 – DEVELOPING BUDDHIST CIRCUITS

6.1 Footsteps of Lord Buddha

Project Description: This project is focused on what is potentially the world’s premier Buddhist circuit. Destinations on the circuit are: Rajgir, Nalanda, Bodh Gaya, Vaishali in Bihar; Sarnath, Kushinagar and Sravasti in Uttar Pradesh; and Lumbini in Nepal with its seven surrounding sites including Kapilavastu. Lumbini and Bodh Gaya are cultural World Heritage Sites. This project will introduce planning for cross-border tourism into the management planning of sites and address common security issues, air links, bad roads and poor rail connectivity. Coordinated market research, on-site interpretation, signage, guide training, and local tourism awareness will be included.

Current Status: The TWG has agreed that Key Area Project 2: Lumbini to India Buddhist Sites would be an ideal “flagship project” for SASEC tourism. It would address this project’s aims as well as starting the process of implementing the Key Area projects in the TDP. Key Area Project 2 involves road improvements, wayside amenities, visitor facilities and interpretation, and water supply infrastructure improvements.

Sri Lanka’s Interests: Sri Lanka is not likely to be involved in this project.

6.2 Living Buddhism in South Asia

Project Description: Originally “Living Buddhism in the Himalaya”, this project was renamed during the sixth TWG meeting at Sri Lanka’s suggestion. The shared aims are resource preservation, broadening visitor markets and extending length of stay. Cooperative marketing, product development and training activities will be focused on the living Buddhism attractions in the subregion.

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Current Status: The ADB HRD TA has included the Living Buddhism theme in the six-day Heritage Guide training of trainers workshop scheduled for 8-13 May 2006 in Bhutan. The workshop will be funded by ADB and run by UNESCO. UNESCO has presented a collaborative framework for developing the potential of Living Buddhism Sites for sustainable tourism, combining this project with 6.3 Buddhist Art and Archaeology. Bhutan is collaborating with the Namgyal Institute for Tibetology (NIT), including on rural tourism associated with monasteries.

Sri Lanka’s Interests: Sri Lanka is vitally interested in this project and has offered to assist in project leadership where practicable. Sri Lanka may seek additional funding from its own sources for another Heritage Guide training workshop in Sri Lanka. Sri Lanka has also suggested a joint study on the story of Buddhism in South Asia, with a long-term vision of telling the story, perhaps in a documentary film.

Immediate Action: UNESCO will provide details of trainers, course structure, venue and dates for the Heritage Guide training workshop. Sri Lanka will seek additional funding for another workshop. The NIT will prepare a case study on monasteries and rural tourism. NTOs will comment on UNESCO’s suggested collaborative framework. ADB will prepare the scope of a TA grant to study the feasibility of a SASEC Tourism Development Project, which may include a monastic circuit.

6.3 Buddhist Art and Archaeology in South Asia

Project Description: This project is focused on promotion and conservation of South Asia’s lesser-known Buddhist art and archaeology sites. Planning, advocacy, joint marketing, improved visitor interpretation, guide training, fostering handicrafts and tourism awareness training will be project activities.

Current Status: UNESCO’s program titled “Cultural Survival and Revival in the Buddhist Sangha” has been adopted by the TWG as a means to implement this project. NTOs are currently considering a collaborative framework presented by UNESCO at the sixth TWG meeting.

Sri Lanka’s Interests: Sri Lanka would like to actively participate where practicable.

Immediate Action: NTOs will comment on UNESCO’s suggested framework.

3.7. PROGRAM 7 – ENABLING THE PRIVATE SECTOR

7.1 Tourism Investment Fund

Project Description: The SASEC Tourism Investment Fund (TIF) concept involves pooling equity of influential tourism investors in the subregion. By encouraging equity participation by governments and the MFIs, the TIF will help finance new investments in tourism facilities, including "bankable" infrastructure projects.

Current Status: India has questioned the need for such a fund for the subregion. Other countries support the project idea.

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Sri Lanka’s Interests: Sri Lanka believes there is a shortage of funding for medium-size projects ($10 to $50 million) and thus supports the project idea.

Immediate Action: ADB will prepare the scope of a TA grant to study the feasibility of a SASEC tourism development project. The scope will consider further investigation of the need for a TIF and, if required, the development of a model for a TIF.

7.2 Public Private Partnerships

Project Description: Worldwide, tasks such as destination marketing are increasingly undertaken by partnerships of the public and private sectors. TWG will take an advocate’s position towards promoting PPP, including by increasingly becoming a PPP itself. The TWG will encourage the strengthening of SASEC’s various tourism institutions and generally promote tourism sector reforms.

Current Status: The next SA STF (Project 5.4) will include a dialogue session on PPP with NGOs, the private sectors and governments represented.

Sri Lanka’s Interests: Sri Lanka’s new Tourism Act includes new PPPs. Sri Lanka is willing to participate with the other NTOs in this project.

Immediate Action: PATA will be asked by Nepal to assist with the PPP elements of the second SASTF. Organizers of the second SASTF in Delhi will consider how to include the dialogue session.

7.3 Fiscal Policy Study

Project Description: The sixth TWG meeting proposed that a subregional fiscal policy study be supported by ADB to assess the impact of reduced taxes on the tourism sector.

Immediate Action: ADB will consider such a study.

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4. CONCLUSIONS

Sri Lanka’s current tourism strategies are focused on (i) high growth, through promotions and new air agreements; (ii) value addition, including through standards and licensing, world-class tourism training, policies on sustainable development; (iii) positioning Sri Lanka as a regional hub and gateway; (iv) supporting factors, such as infrastructure and amenities, and safety; and (v) creating collaborative networks through partnership building. Collaboration with the other SASEC countries in implementing the TDP will assist in all of these areas. The additions and amendments made to the TDP by this Addendum will further enhance its relevance to Sri Lanka. In return, Sri Lanka’s tourism sector has a great deal of experience and enthusiasm to contribute to the TWG’s work of implementing the TDP. All members of the TWG agree that Sri Lanka’s inclusion in the SASEC tourism program is a significant new step in the expanding collaboration between the tourism sectors of South Asia.

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SASEC TOURISM DEVELOPMENT MATRIX AND ACTION PLAN - FEBRUARY 2006

Program 1. Coordinated Marketing

Project 1.1 Joint Marketing to Brand and Promote Ecotourism and Buddhist Circuits

Lead Country: India. (Potential) Development Partners: ADB, JBIC, PATA, SATTE, FICCI, regional airlines, private sector, advertising agencies

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

A marketing campaign will brand SASEC’s premier ecotourism and “Buddhist Heartland” products, targeting international and regional tour operator networks through NTOs’ pooled resources. In style, the promotion will echo the “Incredible India” campaign.

Internet-based marketing material will be produced as well as promotional brochures, posters and CD ROMs, in six sub-themes:• Trekking in the Himalaya • Ecotourism in Ganga-Brahmaputra • Adventure Tourism in South Asia • Footsteps of Lord Buddha • Living Buddhism in the Himalaya • Buddhist Art and Archaeology in South Asia.

• SASEC products positioned in inter- and intra-regional markets;

• Increased destination awareness in target market segments;

• Tourism growth generating benefits to rural areas;

• Increased private sector investment in products;

• Unique aspects in each country emphasized;

• Mutual concern develops for product standards.

NTO Nodal Persons will facilitate selection of content.

India will lead collateral development.

NTOs will distribute collateral and monitor results.

FICCI and SATTE have offered to assist follow up activities.

JBIC considering marketing needs within Footsteps of Lord Buddha theme.

NTOs transferred $10,000 each to India. Collateral was produced and distributed by India and approved by all NTOs. Initial printing: 2 Buddhist Heartland and Nature Culture Adventure brochures (x 5,000 each) and 6 posters (x 2,000 each) and 2000 CDs. Website established: www.visitsouthasia.org.

Campaign launched at the ADB-UNESCO Round Table Meeting in Delhi in January 2005. Collateral used at ITB in Berlin (March 2005) at a joint press conference involving

India reported this project successfully completed, with collateral developed and distributed to the four countries.

The NTOs will distribute the collateral widely and measure its impact.

NTOs should encourage travel agents and tour operators to produce their own brochures and start marketing subregional products.

NTOs could get involved earlier in joint marketing efforts. Selected operators could finance and

All countries to provide updated material to India. Deadline for submission of material: 14 February 2006.

Based on this, India will update the website and reprint collateral to include Sri Lanka.

NTOs to actively involve the private sector in joint marketing.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

all NTOs. NTOs then used the material in individual country stands, at ITB press conferences.

Material used in Marketing Session with buyers at SATTE New Delhi (April 2005), at some national launches, and distributed to private sector, travel industry, Buddhist �rganizations etc.

PATA offered to arrange destination-marketing seminars in source markets and other marketing activities using PATA’s networks. India to submit a proposal.

NTOs to link their destination websites to www.visitsouthasia.org. Website development and maintenance is addressed in ADB’s HRD TA under Project 4.5.

advertise through the collateral.

Sri Lanka will contribute funds to future printing of updated collateral that would include information on Sri Lanka, and participate in other joint marketing initiatives.

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1.2 Regional Marketing with SATTE

Lead Country: India. (Potential) Development Partners: SATTE, UNWTO, national industry organizations, regional marketing committees (PPPs) in each country

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Instead of creating a subregional industry forum, TWG will build on the South Asia Tourism and Travel Exchange (SATTE), a regional industry showcasing event and mart. Its organizers wish to further "regionalize" the event.

A SASEC presence at SATTE will promote SASEC product brands to the regional industry, including those in touch with SASEC’s target inter- and intra-regional markets. SATTE will also be used as a platform to reach non-resident nationals.

• Stronger SASEC product brand identity;

• Heighten demand, increase sales, flow-on benefits to rural poor;

• Public private partnership created in the form of a regional marketing committee in each country;

• Increased tourism awareness engenders pride in South Asian natural and cultural attractions.

SATTE’s organizers will contribute executive effort and in-kind support at the annual events.

NTOs will each establish a regional marketing committee (as public/private partnership).

Development partners will generate financial and in-kind support through sponsorship arrangements.

SATTE organizers provided space at SATTE 2005 (19-23 April) for two SASEC-themed pavilions. NTOs participated, using subregional collateral produced under Project 1.1.

SATTE and UNWTO jointly organized a one-day SA Ecotourism and Buddhist Heartland Marketing Session at SATTE 2005 to showcase the subregion. Tour itineraries were prepared by NTOs with help from UNWTO and ADB.

SATTE organizers have agreed to seek ways to assist NTOs to arrange satellite events and familiarization trips in the subregion.

SATTE organizers once again offered space for a SASEC pavilion at SATTE 2006 to be held 20-23 April in New Delhi.

The NTOs collectively need to confirm the SASEC pavilion to the organizers of SATTE, in addition to confirming participation of individual countries.

NTOs to inform India and SATTE organizers on agreement to joint participation at SATTE 2006 by 14 February 2006.

India to organize a one-day Marketing Session at SATTE 2006, similar to what was done at SATTE 2005.

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1.3 Harmonizing Arrival Statistics

Lead Country: Bangladesh. (Potential) Development Partners: UNWTO; other concerned government agencies

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Project will address the common need for an accurate picture of intra-regional travel. Currently, intra-regional arrivals are not counted in accordance with the World Tourism Organization (UNWTO) norms.

A program of needs assessments and design of appropriate, statistics-gathering methods at a national level will be followed by training for NTOs and other agencies.

• A more accurate picture of travel patterns for planning, marketing and management;

• An incidental outcome may be to change the world ranking of the SASEC region in tourist arrivals;

• Training needs in research departments will be assessed.

UNWTO will lead implementation.

TWG had accepted UNWTO’s offer to implement this project. Copies of a UNWTO Guide to the collection of tourism statistics were circulated.

UNWTO’s proposed sequence of events was that NTOs will study the UNWTO Guide, then send detailed comments and recommendations to Bangladesh and to UNWTO. After considering the comments and recommendations, UNWTO will organize and conduct a subregional workshop on harmonizing statistics. On the basis of the recommendations from the subregional workshop, UNWTO will, within 12 to 16 weeks, design and implement further training as needed.

NTOs, including Sri Lanka, should carefully study the UNWTO Guide and send their report to UNWTO by 14 February 2006. UNWTO need to know details of how each country’s system for data collection and compilation stands vis-a-vis international norms in order to design the Workshop.

At the training Workshop, common definitions of travelers will need to be agreed and strictly applied between the countries when reporting statistics.

Each NTO to review the UNWTO Guide with the aim of identifying the gaps in its own systems in relation to collection of tourism statistics based on UNWTO’s international norms. NTO comments to be sent to UNWTO by 14 February 2006.

UNWTO will then design a 3 to 5 day subregional Harmonizing Arrival Statistics Workshop and confirm date and venue, via Bangladesh.

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1.4 Events Calendar

Lead Country: India. (Potential) Development Partners: GoI, ADB, SATTE Organizers

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

A calendar of cultural, sporting and religious festivals and events will be produced for the SASEC region. The calendar will be developed in print, as an illustrated fold out brochure and map, and also in a form suitable for posting on websites.

The process of developing and distributing the events calendar will involve private/public partnerships and involve wider stakeholders in addition to the tourism industry.

• Key brand images established;

• Visitor stay lengthened and seasons extended;

• Product packaging enhanced;

• Contribution made to international marketing;

• Travel media attracted to the region.

DoT India implemented this project as an integral part of Project 1.1. ADB assisted.

In future, funding for the events calendar is envisaged through a combination of commercial sponsorship and in-kind support organized by NTOs, coordinated by India.

India had prepared and distributed an Events Calendar 2005 based on information provided by NTOs. In the form of a red and yellow poster, the Calendar is complementary to the collateral produced under Project 1.1. The Calendar’s content was approved by NTOs, with ADB coordination.

NTOs had used the Events Calendar 2005 in national and subregional promotions, including at ITB 2005 and SATTE 2005.

All NTOs, including Sri Lanka, will provide to India updated informatioin for an Events Calendar 2006, including this time, a brief description of each event

NTOs and Sri Lanka will immediately provide 2006 and 2007 updates to the calendar of events and a brief description of each event to India by 14 February 2006.

Based on this, India will update the website www.visitsouthasia.org and reprint collateral, including Sri Lanka this time, then distribute the collateral to all NTOs.

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Program 2. Enhancing Product Quality

2.1 Product Standards and Industry Codes of Conduct in Ecotourism and Buddhist Circuits

Lead Country: Nepal. (Potential) Development Partners: UNESCO, ICIMOD, SNV, TMI, WWF and ECOSS

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Heightened demand through SASEC collaborative marketing efforts needs to be supported by consistent quality of product delivery across the subregion. There is an immediate common interest in developing consistent and effective product standards and industry codes of conduct, benchmarked on international best practice.

The Sustainable Tourism Forum (refer to 5.4) will be the platform for promoting the standards and codes agenda at a subregional level. The development process will be ongoing, reflecting that such standards need to evolve and develop from within 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.

It is envisaged that this project will be supported by an alliance of development agencies and national industry organizations. Ideally, the alliance will meet with the TWG and for the rest of the year act independently on components of the project, with funding arranged from their own sources.

SNV and ICIMOD had joined in an alliance to work on a comprehensive proposal for a Sustainable Mountain Tourism Programme (SuMiT). The proposal, based on the TWG’s Projects 2.1 and 5.1, will be put to prospective donors. Consultations have taken place with Nepal and Bhutan.

SNV/ ICIMOD circulated a draft proposal for a Sustainable Mountain Tourism Programme (SuMiT) to all NTOs for comment.

India will help SNV / ICIMOD to coordinate circulation of SuMiT Proposal within the relevant states of India.

The draft proposal for Sustainable Mountain Tourism in the Himalaya (SuMiT), prepared by ICIMOD and SNV, was explained to participants.

WWF presented its activities in Nepal focusing on transboundary partnerships for Sacred Himalayan Landscapes, which has particular relevance to ecotourism codes of conduct. WWF highlighted the linkages between conservation, culture and livelihoods, and outlined the steps in preparing and implementing an integrated conservation plan for trekking routes located in conservation areas

NTOs will continue to cooperate with SNV and ICIMOD in the further development of the Sustainable Mountain Tourism in the Himalaya (SuMiT) Project.

On behalf of the TWG, Nepal will continue to canvass interest in Product Standards and Industry Codes of Conduct in Ecotourism and Buddhist Circuits amongst relevant agencies.

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2.2 Green Labeling and other Quality Assurance for High-end Nature / Culture Tourism

Lead Country: Sri Lanka. (Potential) Development Partners: To be identified

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

An investigation of green labeling and other quality assurance programs, to decide which, if any, may be suitable for SASEC, with particular emphasis on SASEC’s high-end nature and cultural tourism products.

• Contribute to the quality of the subregion’s ecotourism products generally.

• Enhance the subregion’s reputation for high-end ecotourism products.

Sri Lanka is willing to lead this project.

This project idea was introduced at 6th TWG.

Sri Lanka noted that its tourism industry places great importance on maintaining high standards. The industry is particularly concerned to maintain the credibility of its ecotourism products. Sri Lanka is currently developing high-end ecotourism products and is keen to associate these with similar products elsewhere in the subregion.

Sri Lanka will prepare a project design for the next TWG meeting. ADB will assist.

2.3 Enhancing Quality in Health Tourism

Lead Country: Sri Lanka. (Potential) Development Partners: To be identified

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

This project, which may become closely linked to proposed project 2.2, would focus specifically on standards for such products as Ayurveda and the Himalayan Health Spas.

• Protecting and enhancing the subregion’s reputation for a unique range of health tourism products.

Sri Lanka is willing to lead this project.

This project idea was introduced at 6th TWG.

Sri Lanka noted that its tourism industry wishes to promote the highest possible subregional standards for products as Ayurveda and the

Sri Lanka will prepare a project design for the next TWG meeting. ADB will assist.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Himalayan Health Spas. Many health tourism products of the subregion share a common heritage. They are a comparative advantage of the subregion and should be cared for.

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Program 3. Facilitating Travel

3.1 Eastern Himalaya Caravan

Lead Country: (Potential) Development Partners:

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Significant potential exists in new cross border tourism routes. This project will help NTOs illustrate the tourism potential of the routes to other government agencies and raise the profile of new travel routes with the travel media.

Event(s) will be organized by the private sector based on the idea of an overland “caravan” of vehicles exploring and celebrating the potential of new tourist routes, creating publicity along the way aimed at the travel media, trade and target markets.

• NTOs will have a means to draw the attention of concerned agencies to the possibilities of cross-border travel;

• Misconceptions of security issues will be exposed;

• Travel media will be exposed to SASEC’s “hidden” assets;

• SASEC tour operators will have shared a constructive experience;

• Easing of border / visa formalities.

A lead NTO will coordinate with the private sector, NTOs and LTOs to implement the project in the name of the TWG.

NTOs and LTOs will arrange travel authorizations and local hosting along the route.

The project will be largely self-funding. Individual vehicles will be sponsored and/or individual participants will pay their own way.

PATA, SATTE and other regional tourism organizations will be asked to assist in publicity of the event.

Bhutan had circulated a suggested route to NTOs and canvased the private sector for interest.

India had offered to explore the prospect of sponsorship by a car manufacturer.

Nepal had noted lessons learned from the private- sector managed Kathmandu to Dhaka VW Car Rally.

In November 2004, the first Indo-ASEAN Car Rally, organised with support from the Confederation of Indian Industry (CII) successfully implemented this project idea.

Bhutan reported no feedback or comments had been received from NTOs re the proposed route.

India provided copies of a brochure and CD of the Indo-ASEAN Indo-ASEAN Car Rally.

Because this idea was effectively implemented by the Indo-ASEAN Indo-ASEAN Car Rally, this project will be put on hold until NTOs feel the time is right to revisit the notion of a caravan specifically for SASEC.

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3.2 Bagdogra Tourism Gateway and Hub Planning Study

Lead Country: India. (Potential) Development Partners: JBIC, ADB, SASEC Transport Working Group

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Limited international access to areas of the subregion impedes tourism growth. Opening Bagdogra as an international air hub would significantly alleviate this constraint. Directly benefited would be tourist areas in Darjeeling, Sikkim and India’s North East States. Also benefited would be Bhutan, north Bangladesh and east Nepal.

A joint, subregional Bagdogra Tourism Gateway and Hub Planning Study will define the tourism benefits of developing Bagdogra as an international airport.

• Subregional tourism industry’s perspective will be clarified;

• New and innovative tourism patterns will be outlined;

• Economic benefits of a Bagdogra tourist gateway and hub defined;

• Rationale established for new infrastructure projects;

• TWG engagement with the subregion’s tourism private sector;

• Operational linkage forged with SASEC Transport Working Group.

GoI will fund and implement this Study. DoT India will co-ordinate the Study, with assistance as required from key stakeholders including interested development agencies such as JBIC and ADB. Subregional tourism industry groups and interested transport operators will be asked to assist in kind.

DoT India was finalizing the TOR and implementation arrangements for the Study.

It was agreed that the Study should include consultations with NTOs.

India reported the imminent commissioning of a four-month study to further identify priorities.

The terms of reference for the Study will be shared with the countries concerned. The agency implementing the study will consult the NTOs.

Bangladesh requested that Syedpur airport be considered.

India to commission the four-month study.

India to send the terms of reference to the NTOs in advance of the Study and ensure that consultants contact NTOs for inputs.

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3.3 Reducing Impediments to Subregional Travel

Lead Country: India and Sri Lanka . (Potential) Development Partners: UNESCAP, UNWTO, PATA, ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Impediments to travel are common to all member countries. This project takes a long-term, macro view with regard to barriers to SASEC tourism. Key problem areas to be addressed include: border formalities; visas and permits; airline access; currency use and tour operator regulations. Through a series of studies, workshops and seminars, key impediments will be identified and solutions found. Monitoring of SASEC tourist patterns will contribute to the strategic direction of SASEC tourism development. An idea for the long term is a "South Asian Traveler" facilitation system that will assist travel for identified, pre-booked groups.

• Fundamental improvements to the attractiveness of the subregion to tourists and the viability of tourism industries;

• Interventions to improve access and connectivity will complement product development and tourism marketing;

UNESCAP was asked to assist in the early stages of this project, possibly by holding a subregional seminar on the subject of Reducing Impediments to Subregional Travel. If practicable, the seminar could be scheduled around a TWG meeting.

Multilateral agencies would be asked to consider sponsoring subsequent studies on this topic, the TOR for which would be considered at UNESCAP’s subregional seminar.

This is envisaged as a long-term project that may spin-off other projects.

UNESCAP’s assistance has been requested.

Advised by UNWTO that facilitating cross-border travel by pre-booked groups is an important step to stimulating subregional tourism, the TWG agreed to action the “South Asia Traveler” facilitation idea discussed at Thimphu in May 2004 (details in the TDP, page 86).

5th TWG agreed to consider the concept of a Buddhist Heartland Visa. This idea, could immediately link Lumbini on the Footsteps circuit. It could also include Sri Lanka and could be administered by linked national facilitation committees.

On 29 July 2005 in a press release, SAARC Tourism Ministers stressed the need for a single visa for the ubregion.

Sri Lanka noted that it would be keen to participate in the development of joint visas and to strengthen air linkages.

Sri Lankan participants requested India to consider relaxing entry requirements for Sri Lankan citizens, in the same way Sri Lanka has done for Indian citizens.

India suggested ADB could initiate a study of how destinations (such as Sri Lanka, Australia and the Mekong Region) have implemented visa relaxation policies in the current international climate of border security concerns.

Such a study could be shared at the next SAARC Tourism Ministers’ meeting in Pakistan in mid-2006, and could then

ADB to explore possibility of a study on how other destinations reconcile security concerns with visa relaxation.

NTOs to, meanwhile, continue advocacy for visa relaxation to facilitate tourism.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

It had been agreed that NTOs would report at the 6th TWG meeting on national industry talks about the “South Asia Traveler” facilitation system idea and the “Buddhist Heartland Visa” idea. Each NTO was asked to present a position statement on these ideas at 6th TWG, including a comment on the merits of these ideas from their national industry’s perspective.

be used by respective NTOs to accelerate their visa relaxation agendas.

3.4 Asian Highway Improvements Advocacy

Lead Country: India. (Potential) Development Partners: UNESCAP, JBIC, ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Travel in the SASEC subregion is constrained by bad roads, poor linkages and minimal wayside amenities. Realizing the tourism potential of the Asian Highway within SASEC will greatly enhance opportunities for pro-poor tourism.

The TWG will capture the voice of SASEC tourism in support of

• Enhanced visitor comfort and convenience, encouraging more visitors to travel by road;

• Poor communities able to participate in tourism. Pilgrimage trips encouraged;

• Contribution to the rationale for transport sector projects;

UNESCAP has been asked to keep the TWG in touch with progress on the Asian Highway concept and with UNESCAP’s relevant programmes and initiatives.

When infrastructure projects are being considered associated with the Asian

UNESCAP had informed the TWG on progress with the Asian Highway. Almost all national agreements are in place.

ICIMOD had agreed to consider linking its interactive GIS system with UNESCAP’s Asian

India reported on the implemention of infrastructure development projects on Buddhist circuits, with JBIC support.

It was agreed that similar projects could be developed for subregional

The India / JBIC example will be used as a model for infrastructure development projects, especially in the Key Areas identified by the TDP. NTOs will continue to investigate such project opportunites and bring them to TWG meetings.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

tourism-related improvements to the Asian Highway concept. Asian Highway tourism project ideas with merit will be promoted.

• Tourist driving routes developed.

Highway, the TWG will take the role of being the voice of SASEC tourism and arrange coordinated tourism advice to the SASEC Transport Working Group.

JBIC working with India to develop a SASEC version of the “Michi no Eki’ community-based roadside facilities concept.

Highway GIS maps.

All NTOs were to report at 6th TWG meeting on lobbying activities with their ministries of transport, seeking priority to upgrading sections of the Asian Highway.

India and ADB were to report at 6th TWG on co-ordination with the SASEC Transport Working Group and national road infrastructure programs.

India and JBIC were to summarize progress with the "Michi no Eki’ concept at 6th TWG.

Buddhist circuits, including improvement of roads infrastructure, with the support of ADB and JBIC.

BIMSTEC has contacted ADB and expressed interest in undertaking a study on connectivity between South Asia and Thailand. Asian Highway improvements could be covered by this study.

ADB will liaise with BIMSTEC on the proposed study on connectivity between South Asia and Thailand.

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Program 4. Developing Human Resources

4.1 Encouraging the Network of Asia Pacific Education and Training Institutes in Tourism (APETIT) to Engage with South Asia

Lead Country: Bangladesh and Sri Lanka. (Potential) Development Partners: UNESCAP, APETIT, ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Facilitating the process of upgrading SASEC’s human resource development in tourism is a priority in all countries. SASEC training institutions require technical support and basic skills training needs to be benchmarked against international best practice levels.

Through UNESCAP, APETIT will be asked to provide leadership in evaluating national tourism training capabilities, identifying needs and opportunities for technical assistance, implementing train the trainer programs and identifying needs for refurbishment of institutions.

• Stronger links between the training institutions of SASEC;

• “Centers of excellence” in tourism training developed throughout SASEC and beyond (i.e. BIMSTEC / SAARC);

• Benefits of improved standards of training flow through to the industry;

• The need to travel outside the region for training will be removed.

Bangladesh will communicate with UNESCAP on behalf of the TWG with a view to encouraging APETIT activities in the subregion.

ADB’s TA on HRD in tourism within SASEC will identify needs for training of trainers in the subregion and potentially provide opportunities for APETIT members to assist in pilot training.

Bangladesh is maintaining a dialogue with UNESCAP, on behalf of the TWG, to encourage APETIT activities in the subregion.

UNESCAP had explained that APETIT’s normal activities involve: information management; communication links; training and advisory services; sharing experiences and research; and development.

The ADB HRD TA Team is working with UNESCAP which features in 2 of the 5 Common Minimum Training Program (CMTP) training topics i.e. 4. Hospitality and Business for SME Owners and 5. Competency Building for Core Staff in Tourism Institutes

Sri Lanka will join Bangladesh in the lead country role for this project.

An APETIT Status Report was presented including a report on the APETIT regional meeting in Hanoi 18-21 October 2005, which included consultations involving six APETIT centers from SASEC countries.

NTOs to forward any comments on the Status Report to UNESCAP (APETIT) by 14 February 2005.

Bangladesh and Sri Lanka to encourage SASEC training institutes that are already members of APETIT to begin active networking on a subregional basis.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

The ADB HRD Consultant attended the UNESCAP national seminar on Sustainable Tourism Development 22-23 June 2005 in Dhaka Bangladesh.

4.2 South Asian Host

Lead Country: Bhutan. (Potential) Development Partners: This project is seeking a donor agency

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

This project will contribute directly to stimulating subregional tourism through “good host” training to encourage friendliness, increase awareness of tourism and foster attitudes of “neighborliness” in front-line people.

"South Asia Host" courses will train airport staff and officials, transport workers, hotel and restaurant / café staff. Trial on-site courses in selected gateway cities will pilot the scheme. If successful, subsequent courses will be offered elsewhere on a user-pays basis.

• Trainees will deliver higher levels of visitor service;

• Greater subregional understanding, increased friendliness, increased tourism flows and associated benefits to local economies;

• A complementary counterpoint to the subregional joint marketing and starting point for sustainable destination management.

The TWG will respond to any interest in this project from funding agencies. The donor will be asked to assist by providing one or two experienced persons to lead the team of trainers. Once underway, NTOs will promote “user-pays” arrangements with front-line agencies and the private sector. Ultimately, the host training could be on a commercially sustainable basis.

NTOs had presented case studies of their experiences in this field to the 5th TWG meeting in Dhaka in February 2005.

The TWG had agreed that the individual experiences of the four countries should form the basis of any project design.

India had agreed to arrange the South Asia Host workshop as part of the CMTP. Implementation should be continuous, not “one off”.

India reported that this project is taken forward by the ADB HRD TA team as part of the CMTP as Course #1: South Asian Host. A training of trainers three-day workshop for 20 participants will take place in India 4-6 May 2006.

Detailed actions and deadlines are includedin the HRD CMTP Implementation Plan.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

NTOs had agreed to be partners in the training. This is likely to focus on training airport and border front-line staff.

4.3 Training for Travel Media

Lead Country: Nepal. (Potential) Development Partners: ADB, PATA, UNWTO

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

SASEC tourism needs an effective industry media. The tourism and travel media play a vital role in tourism. Industry magazines and newsletters enhance communication within the industry and, crucially, link sellers with buyers.

Fostering higher standards of journalism is a worthy aim. This project envisages a one-off, customized training course in travel-trade writing for the tourism and travel journalists of the subregion.

• This short project will be confidence boosting for the TWG;

• Travel writers will be trained and other media focused on SASEC;

• TWG’s activities brought to the attention of the media;

• Potential visitors and current visitors will be better informed.

ADB agreed to sponsor this project. A course charge per participant will cover the costs of the venue.

Nepal and PATA agreed to organize and conduct the training.

Nepal and PATA had planned a training event for 10-11 February 2005. The event was postponed due to local conditions.

The Travel Media Workshop took place 26 -27 August 2005 in Kathmandu.

The HRD TA Team had used the event as a pilot, including trialling a participant’s feedback form.

A South Asia Forum for Tourism Journalists (SAFTOJ) had been formed as a tangible outcome.

Nepal reported that the two-day Travel Media Workshop successfully took place on 26 -27 August 2005 in Kathmandu for 35 participants from all four countries (8 from Bangladesh, 6 from Bhutan, 4 from India and 17 from Nepal) organized by Nepal with trainers from PATA (Mr Imtiaz Muqbil, Travel Impact Newswire) and UNWTO (Mr Rok V Klancnik, Director Press & Communication).

This project has been completed.

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4.4 Project Management Training for NTOs and LTOs

Lead Country: Nepal. (Potential) Development Partners: ADB, PATA, UNWTO, SNV, ICIMOD

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Project to up-skill national tourism organizations (NTOs) and local or state-level tourism organizations (LTOs) in project management. Increased confidence in project management skills will ultimately improve success of all TWG’s programs.

A ten-day course is envisaged, with 10 to 15 participants.

• Boost capabilities and confidence of NTOs and LTOs to participate in subregional cooperation projects;

• Create networks useful for the implementation of cooperative projects and generally improve the efficiencies of NTOs.

ADB has included this project in the TOR for its TA on HRD in tourism within SASEC. The TOR includes course design and a trial implementation.

UNWTO has offered technical assistance.

The ADB HRD TA team had included this project in the CMTP as Course #6: Project Management Training for NTOs / LTOs, to be arranged by Nepal and SNV and ICIMOD, with input from UNWTO on the course structure.

Nepal reported that this project has been taken forward in the CMTP as Course #6: Project Management Training for NTOs / LTOs. A six-day workshop with field trip for 20 participants will take place in ICIMOD headquarters Kathmandu with 20 participants 24-29 April 2006.

Detailed actions and deadlines are included in the HRD CMTP Implementation Plan.

4.5 SASEC Human Resource Development and Capacity Building in the Tourism Sector

Lead Country: All countries to assist. (Potential) Development Partners: ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

An ADB TA is designed to support HRD in the tourism sectors in SASEC and networking of tourism institutions in the subregion. The TA will develop a common minimum training program, course structures, and a training calendar. The TA will support the

• Strengthening institutional capacity in the subregion;

• Support for cooperative efforts based on the TWG’s agreed themes;

ADB prepared this TA at the request of the TWG to address the SASEC tourism HRD priorities (including those in other projects above). The TA team will work in close coordination with the NTOs as the

ADB had recruited a team of consultants to implement the TA 6225-REG: SASEC HRD and Capacity Building in the Tourism Sector. An inception workshop had been held during the 5th TWG

A detailed HRD Activity Summary Report and Training Calendar was distributed with details of progress of the TA and details of the CMTP workshops. The CMTP and training calendar were

Countries to suggest pilot sites for the next phase of the HRD TA and inform ADB by 14 February 2006. India selected the Namgyal Institute of Tibetology (NIT) in Sikkim.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

development of HRD strategies and through Development Partners will implement training of trainer workshops in BBIN

• Identifying subregional and national centers of excellence;

• Greater private sector participation;

implementation of the recommendations would be done through the NTOs

Meeting in Dhaka in February 2005.

The TWG had endorsed the TA Team’s approach and NTOs agreed to assist in implementation.

The ADB HRD TA is currently being implemented (from Feb 05 to June 06). The HRD TA Team has undertaken country visits and is in regular communication with the NTOs. A Common Minimum Training Programme (CMTP) has been agreed by all countries and is under implementation with Development Partners.

As a component of the HRD TA, the ICT Consultant is working on website development of www.visitsouthasia.org.

reviewed and reconfirmed, with minor adjustments where needed due to other events being scheduled.

A concept for downstream HRD activities after the current TA was presented by ADB. Ideas focus on the selection of appropriate pilot sites in each country for follow up activities.

India proposed that funding from national resources be committed to take forward the current training-of-trainers phase, that an impact evaluation be done, and follow-up steps identified, to ensure a lasting impact of the TA.

Sri Lanka will seek funds for sending participants to CMTP training workshops already scheduled under TA6225-REG, and will be a willing participant in any future HRD program.

The ICT Consultant reported progress with the website. Implementation

The ICT Consultant to further investigate how financial and regulatory issues such as different procedures for payment, transaction fees, refunds to customers etc. can be factored into the design of the web portal.

It was agreed that the web portal must be driven by the private sector to ensure sustainability. The NTOs’ main role will be marketing the portal. The NTOs will need to create a “template” for the SMTEs to provide the initial details for the portal content. Subsequent updates will be the portal operator’s responsibility.

India suggested next steps by the ICT Consultant: to develop a detailed requirements definition to invite bids. This will require (i) a regulatory/legal framework to address the ownership and operational aspects; (ii) an assessment of the feasibility of including a payment mechanism; and (iii) implementation arrangements, including the role of the NTOs in

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

challenges relate to regulatory, technical and commercial aspects.Two bidders, Amadeus and Journeymart, made presentations to the meeting.

ADB funding of about $50,000 available under TA6225-REG will be seed capital or viability gap funding to get the portal established. NTOs may need to provide additional funding, in particular for supporting SMTEs. An initial amount of $10,000-$15,000 was suggested.

approving travel businesses for the portal, and establishment of a committee to oversee the development and operation.

NTOs to explore provision of additional funding for the portal, in the order of $10,000-$15,000.

See also, under Project 6.2, actions required by UNESCO to provide details of trainers, course structure, venue and dates for Course # 3.2 Heritage Guide, by 14 February 2006.

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5. Developing Ecotourism Based on Nature and Culture

5.1 Integrated Project on Trekking in the Himalaya

Lead Country: Nepal (Potential) Development Partners: TMI, WWF, ICIMOD, SNV and ECOSS, Austrian Assistance.

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Trekking areas are constrained by access, security and a lack of marketing. “The Great Himalayan Trail” concept will link marketing and product development, opening new circuits and cross border treks, exposing poor rural communities to benefits of tourism. The project will involve joint marketing, addressing cross border issues and preparing remote villages for tourism.

A trekking route will eventually link the Kanchenjunga Conservation Area in Nepal with Khangchendzonga National Park’s trekking areas in Sikkim and, via either the Nathu La in Sikkim or Phari Dzong in Tibet, to Haa or Paro in Bhutan.

• Heighten awareness of and demand for 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;

• Raise self-esteem, dignity and livelihoods of mountain people.

INGOs and bilateral agencies with interests in ecotourism within the subregion are asked to pool resources to help address design and implement this project.

SNV / ICIMOD had joined in an alliance to prepare a comprehensive proposal for a Sustainable Mountain Tourism Programme (SuMiT) that includes the Great Himalayan Trail (GHT). The proposal, based on the TWG’s Projects 2.1 and 5.1, will be put to prospective donors.

A draft proposal for a Sustainable Mountain Tourism Programme (SuMiT) had been circulated by SNV / ICIMOD to all NTOs for comment at TWG’s request in August 2005.

It had been agreed that the Great Himalayan Trail (GHT) marketing concept will be supported by Bhutan, India and Nepal in their marketing activities.

SNV / ICIMOD circulated an updated draft proposal for SuMiT to TWG participants.The alliance is seeking funding.

Nepal reported that, with support from SNV / ICIMOD, a half-day workshop on the GHT had been organised to gather information and identify “missing links”.

Bhutan suggested that its centenary celebrations in 2008 would be a suitable target date for the GHT to be launched.

WWF presented its activities in the subregion focusing on transboundary partnerships for Sacred Himalayan Landscapes. Steps were outlined for preparing and

On behalf of the TWG, Nepal to continue to canvass interest in funding this project amongst all agencies associated with ecotourism.

ADB to prepare the scope of a TA grant to study the feasibility of a SASEC tourism development project. The study could include the Great Himalayan Trail.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

The HRD TA CMTP had included ecotourism and trek guide training of trainers in a six-day workshop hosted by Nepal 16-21 Dec 2005 for 20 participants arranged by The Mountain Institute (TMI) with trainers from partner NGOs.

implementing an integrated conservation plan for trekking routes in conservation areas.

WWF Nepal and WWF USA expressed interest in coordinating a new ecotourism trekking initiative with SASEC and SAARC.

5.2 Integrated Project on Ecotourism in Ganga-Brahmaputra

Lead Countries: Bangladesh and India (Potential) Development Partners: State Governments of India, private sector tourism operators

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

This project will establish the Ganga-Brahmaputra as a tourism destination, based on wildlife and river based tourism. Cooperation in overcoming barriers to tourism and joint promotion will heighten demand, and ultimately reduce poverty. Joint marketing will focus on establishing an image library, targeting the regional tourism industry and international buyers with interest in South Asia. Overcoming barriers and developing infrastructure will be carried out through coordinated advocacy activities. The private sector will be

• Improvements to travel facilitation;

• Heightened levels of awareness amongst tourism industry players;

• Private sector more willing to invest in tourism products;

• Tourism development agenda adopted by infrastructure projects;

• New products created, attracting new markets,

India will coordinate. GoI agencies will be able to assist.

Other potential development partners will be sought from development agencies associated with India’s North East and in Bangladesh.

Bhutan and Nepal will be invited to join in once the project is underway.

Where large infrastructure is

The TWG had agreed that a key starting point will be the icon cruising products on the Brahmaputra that have the potential to link Bangladesh and India.

TWG had agreed to endorse the promotion of cross-border cruises on the Brahmaputra as a “flagship” SASEC tourism project.

India reported a 15-room cruise ship has started operating on the Brahmaputra River from Guwahati. Its operations could be extended across the border into Bangladesh.

Bangladesh would be happy to pursue this possibility, but an agreement on passenger traffic needs to be concluded with India. Such an agreement and a

Bangladesh and India to follow up on achieving an agreement on passenger traffic, to enable extension of Brahmaputra River cruise operation from India to Bangladesh.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

encouraged to develop new products.

increasing tourist numbers and spreading the benefits.

required, the needs will be communicated to other SASEC Working Groups.

multimodal study are being discussed under SAARC activities.

5.3 Integrated Project on Adventure Tourism in South Asia

Lead Country: India (Potential) Development Partners: International Institute for Adventure Sports in Sikkim, NTB, ECOSS, bilateral agencies

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Project to develop adventure tourism through marketing and professional development. The adventure travel industry, domestic youth and students, and corporate groups will be targeted. A South Asia Network of Professional Associations of Adventure Tourism Operators will be formed to advise and assist.

New adventure tourism destinations will be promoted and a subregional adventure tourism training facility will be championed.

• Increased demand for adventure tourism in the subregion;

• Adventure profession will grow in confidence and standards;

• Intra-regional and inter-regional professional links will be enhanced;

• New products will be created, attracting new adventure segments and spreading tourism benefits.

GoI will fund the initial stages of this project.

Development partners will be sought to assist the formation of the Network.

The Network itself would be self-funding, except where its activities are supported in future by funded TWG projects.

It is envisaged that the Network may meet once a year in conjunction with the STF (see Project Profile 5.4).

India had reported it was in the process of formulating an action plan to implement this project.

It had been agreed that India’s new Institute of Adventure Tourism in Sikkim, currently in its establishment phase, will lead implementation activities.

India, with support from Nepal and ECOSS, will proceed with establishing a South Asia Network of Professional Associations of Adventure Tourism Operators. India will present a progress report to the 6th TWG meeting.

India has established an Institute for Adventure Sports in Sikkim as a center of excellence, and welcomes the participation of other countries in its activities.

Sri Lanka confirmed it is keen to support the adventure tourism theme.

NTOs should discuss this project with their national adventure tourism institutes, associations and adventure operators, and report comments and ideas about implementation of the project to the 7th TWG meeting.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

The ADB HRD TA has included adventure tourism and safety standards as an element of Course #3.1 Ecotourism Guide training in CMTP.

5.4 South Asia Sustainable Tourism Forum

Lead Country: Nepal (Potential) Development Partners: SNV. ICIMOD, TMI, WWF, and PATA.

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

South Asia could be the leader in world ecotourism. This could be facilitated by bridging the divide between resource managers and INGOs active in ecotourism projects and the ecotourism operators of SASEC’s tourism industries. The means to do this is a Sustainable Tourism Forum (STF) to be held every year in conjunction with the TWG meeting.

The STF will facilitate the discussion of subregional issues, joint product planning and marketing, the introduction of international best practice, foster cooperation and showcase new sustainable natural and cultural heritage-based tourism products.

• Partnerships forged between development agencies, resource managers, and private the sector;

• A platform created for small operators to make market links with the wider industry;

• Lessons learnt shared, subregion-wide problems addressed;

• The state-of–the-art in pro-poor tourism will be advanced;

• South Asia positioned as home to the world’s best in ecotourism.

SNV, ICIMOD and Bangladesh organized the first SA STF in Dhaka on 26 February 2005. ADB assisted with venue costs. ADB and SNV jointly sponsored lunch.

The aim is to make SASTF eventually be self-funding through multiple sponsorship arrangements and possibly a small attendance fee.

The first, trial SA STF event had been held in conjunction with the TWG meeting at Dhaka in February 2005. About 80 participants registered, including about 30 from tourism development projects and 30 from the private sector.

The trial proved that the SA STF is a worthwhile event. It should be arranged to coincide with TWG. Among other reasons, this will encourage high-level attendance at the TWG.

The 5th TWG meeting had agreed that in 2006, when

It was decided that the second South Asia Sustainable Tourism Forum (SA STF) will be held on the sidelines of India’s proposed Global Ecotourism Conference and Ecotour to be held in Delhi mid April 2006. The second Forum will be organised by SNV, ICIMOD, and WWF, with assistance from India.

The second Forum will include a dialogue session on public-private partnerships, with NGOs, the private sector and governments represented.

India to assist with a plan of action for organizing the second SA STF in New Delhi organised by SNV, ICIMOD, and WWF, to be held in association with the Global Ecotourism Conference and Ecotour April 2006.

See also, under Project 7.2, actions by Nepal to ask PATA to assist the PPP dialogue session at the second Forum.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

the TWG meeting was to be held in Bodh Gaya, Nepal would organize the second SA STF probably in partnership with SNV / ICIMOD / PATA.

An agreed goal and objectives for the SA STF were included in the Proceedings of the 5th TWG meeting.

5.5: SASEC Integrated Product Development Plan for Ecotourism Based on Nature and Culture

Lead Country: Sri Lanka Development Partner: UNWTO

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

At the TWG meeting in Thimphu in 2004, UNWTO suggested an Integrated Product Development Plan for Ecotourism Based on Nature and Culture could be useful to structure all projects under Program 5. Not a "masterplan", the Plan would identify ecotourism product development projects, both subregional and national, for implementation under the guidance of the TWG.

• Integration of SASEC’s ecotourism product development activities with UNWTO’s international activities in ecotourism and sustainable livelihoods, including the UNWTO-led Sustainable Tourism for the Eradication of Poverty (STEP) Program;

• Systematic identification of the ecotourism product development needs and opportunities across the

The NTOs agreed to make the preparation of this Plan a project within Program 5, provided that the other projects in the Program will go forward in the meantime.

UNWTO has offered to approach UNDP New York on behalf of the TWG to seek funding for the Plan. This offer was made subject to the SASEC NTOs’ endorsement of the SASEC Tourism Development Plan

The TWG had endorsed the SASEC TDP.

UNWTO had noted at the 5th TWG meeting that no requests had been received from SASEC Government.

UNWTO indicated its continued interest in being actively involved. Further clarity is needed on the next steps to be taken in approaching UNDP for funding.

UNWTO and NTOs to discuss next steps at the 7th TWG meeting.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

subregion. (TDP) by the TWG and a request from all four SASEC Governments to UNWTO.

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Program 6. Developing Buddhist Circuits

6.1 Footsteps of Lord Buddha

Lead Country: India (Potential) Development Partners: JBIC, ADB

Project Outline Anticipated Benefits Roles and Responsibilities Progress 6th TWG Developments Actions and Deadlines

Focused on potentially the world’s premier Buddhist circuit, joint tourism planning and marketing will be jointly overseen by India and Nepal. Destinations on the circuit are Rajgir, Nalanda, Bodh Gaya, Vaishali in Bihar; Sarnath, Kushinagar and Sravasti in Uttar Pradesh; and Lumbini in Nepal with its seven surrounding sites including Kapilavastu. Lumbini and Bodh Gaya are cultural World Heritage Sites.

The project will introduce tourism into the management and planning of sites, address security issues, air links, bad roads and poor rail connectivity. Coordinated market research is envisaged at each site. On-site interpretation, signage, guide training, and local tourism awareness will be included.

• 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.

A partnership of India and JBIC is already active in the Indian portion of the Footsteps of Lord Buddha circuit. The Uttar Pradesh Tourism Development Programme is focused on upgrading facilities associated with key tourist sites. India has agreed to coordinate the TWG’s interests with the partnership’s future plans. JBIC has expressed interest in the prospect of collaboration with ADB if the opportunity arises.

If necessary, an India-Nepal Coordination Committee may be formed. Joint tourism planning and promotional activities will be led by India in close consultation with Nepal and key stakeholders such as Buddhist societies and the private sector.

At India’s request, JBIC had been considering including support for a Footsteps of Lord Buddha Marketing Campaign to heighten demand and foster responsible attitudes in the design of Phase II of the Uttar Pradesh Tourism Development Programme.

It had been agreed that concerned conservation and development-focused agencies be encouraged to support joint marketing activities and sustainable tourism management on the circuit.

It was agreed that priority will be given to the TDP Key Area projects and a logical “flagship project” would be Key Area 2: Lumbini to India Buddhist Sites. This project requires road improvements, wayside amenities, visitor facilities and interpretation, and water supply infrastructure improvements.

ADB to prepare the scope of a TA grant to study the feasibility of a SASEC Tourism Development Project. The study will include tourism development. on the Ajanta-Ellora model, for the Buddhist Heartland (Lumbini to India), and a possible Monastic circuit elsewhere (see 6.2).

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6.2 Living Buddhism in South Asia

Lead Country: Bhutan and Sri Lanka (Potential) Development Partners: UNESCO, Namgyal Institute of Tibetology (NIT) in Sikkim, SNV, Austrian Development Cooperation

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Cooperative marketing, product development and training activities will be focused on living Buddhism attractions. The shared aims are resource preservation, the desire to broaden current segments and extend length of stay.

Marketing activities will be aligned with SASEC branding. Joint planning for visitor services will involve wider stakeholders at each site.

Codes of conduct will be developed to improve visitor / host relationships and trainers trained in best practice techniques to involve local communities as custodians and participants in tourism benefits.

This overarching planning and coordination project may spin off other projects.

• Growth in demand, lengthened stay, and greater awareness of living Buddhism sites;

• New products and new circuits, carefully segmented, developed and existing ones improved;

• Guest / host codes of conduct helps minimize insensitive behavior and other negative impacts of tourism;

• Improved community awareness of the benefits of tourism will result in increased care for sites and pride in shared culture.

Led by Bhutan and the Namgyal Institute of Tibetology in Sikkim, NTOs will seek to plan and coordinate initiatives that contribute to the aims of this project.

All agencies working on tourism development projects associated with Living Buddhism will be asked to collaborate and assist with overarching planning studies.

Existing NTO budgets will be harnessed for promotional, coordination and advocacy activities.

ADB and UNESCO convened the Delhi Round Table on the sustainable development of cultural heritage and cultural tourism in South Asia on 16 January 05. UNESCO has agreed to link the academic aspects of its cultural heritage work in South Asia to this project.

Austrian Development Cooperation is planning a restoration and interpretation project for Trongsa Dzong in Bhutan.

It had been agreed that Bhutan and the NIT in Sikkim will explore the prospect of working together on this project for mutual benefit and on behalf of the TWG.

It had been agreed that Bhutan, on behalf of the TWG, will seek interest from concerned donor

UNESCO presented a possible collaborative framework for developing the potential of Living Buddhism Sites for Sustainable Tourism in the subregion, combining with Project 6.3 Buddhist Art and Archaeology.

Bhutan reported on its Living Buddhism collaboration with NIT. NIT is linking with NGOs working on ecotourism and rural tourism.

It was agreed that NIT will prepare a case study on monasteries and rural tourism.

Nepal reported that a Lumbini Buddhist University is to be established, which could contribute to the efforts on Living Buddhism.

UNESCO would like to

Project title will change to “Living Buddhism in South Asia”.

NTOs to comment on UNESCO’s suggested framework by 14 February 2006.

NIT to prepare a case study on monasteries and rural tourism to be supported by GOI.

Living Buddhism to be included in the CMTP Course #3.2 Heritage Guide six-day TOT workshop for 20 participants 8-13 May 2006 in Bhutan as part of the ADB HRD TA. UNESCO to urgently provide details of trainers, course structure and venue by 14 February 2005.

Sri Lanka to seek funding for another Heritage Guide training workshop in Sri Lanka.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

agencies. The cooperation of airlines and major tourism operators will be requested. International agencies, including UNESCO, will be asked to collaborate.

do capacity building and support the production of educational material. This effort could be led by monastic communities, respecting local traditions.

Sri Lanka suggested, and the TWG agreed, that the title of this project be changed from “Living Buddhism in the Himalayas” to “Living Buddhism in South Asia”.

6.3 Buddhist Art and Archaeology in South Asia

Lead Countries: Bangladesh and Sri Lanka (Potential) Development Partners: UNESCO, INTACH

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Project focusing on promotion and conservation of South Asia’s lesser-known Buddhist art and archaeology sites.

Joint action is needed to develop and position ancient Buddhist sites to sightseeing and cultural groups, pilgrims and special interest segments, while ensuring the sustainability and preservation of the sites.

• Greater awareness of Buddhist art and archaeological products;

• More integration of conservation and development at site level;

• Local, national and subregional pride in historical traditions, cultural heritage and shared history;

This project will be implemented by UNESCO as the South Asia component of the UNESCO programme “Cultural Survival and Revival in the Buddhist Sangha: Documentation, Education and Training to Revitalise Traditional Decorative Arts and Building Crafts in the Buddhist Temples of Asia”.

An ADB-UNESCO Roundtable had been held on 16 January 2005. The objectives were to strengthen subregional and intersectoral cooperation and to identify opportunities for cooperation within the framework of the TWG’s programme and UNESCO’s plans.

UNESCO presented a possible collaborative framework for developing the potential of Buddhist Art and Archaeology combining with Project 6.2 Living Buddhism in the subregion, and building on UNESCO’s existing program, Cultural Survival and Revival in the Buddhist Sangha.

NTOs to comment on UNESCO’s suggested framework by 28 February 2006.

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Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Focused planning, advocacy, joint marketing, improved visitor interpretation, guide training, fostering handicraft, and tourism awareness training will be included as project activities.

• Enhanced visitor experience and increased tourism flows with corresponding local benefits;

• Potential negative impacts of tourism addressed and minimized.

TWG will support UNESCO’s search for assistance from: SASEC member country government agencies; multilateral agencies; bilateral donors such as France, Italy and Norway; the Buddhist circuit source markets - Japan, South Korea and Thailand; and Buddhist organizations; other development agencies; INGOs, trusts and museums.

It had been agreed at 5th TWG meeting that India and Bangladesh would lead the NTOs in cooperating with UNESCO and INTACH to assess planning, marketing and training needs of pilot sites in the subregion. Sites with donor-assisted projects already in place will be asked to collaborate. NGOs, including INGOs will be asked to assist with tourism awareness and community training activities.

As part of the ADB HRD TA’s CMTP, UNESCO is arranging a 3.2 Heritage Guide 6-day ToT workshop for 20 participants 8-13 May in Bhutan.

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Program 7. Enabling the Private Sector

7.1 Tourism Investment Fund

Lead Country: India (Potential) Development Partners: ADB, influential private sector investors

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Small and medium-sized investors have the most difficulty in securing financing, creating an impediment to tourism growth at this level. The SASEC Tourism Investment Fund (TIF) concept involves pooling equity of influential tourism investors in the subregion. By encouraging equity participation by governments and the MFIs, the TIF will help finance new investments in tourism facilities, including "bankable" infrastructure projects.

When fully established in the subregion, the TIF could be expanded to other SAARC member countries.

• The TIF acts as a catalytic force in facilitating new tourism investments, including infrastructure, and in creating a positive environment for investment;

• Fund contributes to increasing tourism arrivals and extended stays, leading to new employment opportunities in poor areas, increased tourism revenues to governments, and other benefits.

TIF is envisaged as majority owned by private investors. Governments and MFIs would be invited to take equity positions. Initial funding is needed to develop the concept and to identify the founding shareholders. With co-financing, the Fund could be a major factor in helping to develop the tourism industry.

ADB had assessed reactions to this idea and agreed to proceed with further assessments jointly with India.

It had been agreed that ADB and India would consult with venture capital experts in the subregion and prepare a Concept Paper.

While India questioned the need for such a fund for the subregion, other countries, notably Sri Lanka, were of the view that there is a shortage of funding for medium-size projects.

ADB will prepare the scope of a TA grant to study the feasibility of a SASEC Tourism Development Project. ADB to consider including in the scope further investigation of the need for a Tourism Investment Fund and, if required, developing a model for a Tourism Development Fund.

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7.2 Public Private Partnerships

Lead Country: Nepal (Potential) Development Partners: PATA, ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

Worldwide, tasks such as destination marketing are increasingly undertaken by partnerships of the public and private sectors.

By becoming a public private-partnership (PPP) itself, the TWG will take an advocate’s position, ensuring that SASEC’s various tourism institutions are continually strengthened and that tourism sector reforms are undertaken.

The first focus of the TWG’s advocacy will be to ensure buy-in from national and state governments and their industry partners to the SASEC Tourism Development Plan.

• PPPs in tourism combine the smart and nimble thinking of the private sector with the power and responsibility of government. When focused on a task such as destination marketing, a PPP will act with more confidence and focus than would either sector acting alone.

It is envisaged that the TWG itself will lead implementation of this project, largely through influencing the future agenda of the South Asia Sustainable Tourism Forum (SA STF).

The first SA STF concluded that the objectives of future STF’s should include encouraging private sector linkages to tourism development projects and to the TWG.

PATA had indicated interest in standing alongside the TWG in implementing this project.

It was agreed that the next South Asia Sustainable Tourism Forum (SA STF) (Project 5.4), to be held in New Delhi in April 2006, will include a dialogue session on public-private partnerships where NGOs, the private sector and governments would be represented.

Organisers of second SA STF (SNV / ICIMOD / WWF) are to consider including a dialogue session on public-private partnerships where NGOs, the private sector and governments are represented.

PATA to be asked by Nepal to assist the PPP elements of the second SA STF.

7.3 Fiscal Policy Study

Lead Country: (Potential) Development Partners: ADB

Project Outline Anticipated Benefits Roles and Responsibilities Previous Progress 6th TWG Developments Actions and Deadlines

The Sixth TWG meeting proposed that a fiscal policy study be supported by ADB, to assess the impact of reduced taxes on the tourism sector.

ADB to investigate the prospect of supporting a fiscal policy study and, if appropriate, prepare a project profile.

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Key Area Programs (The TWG will keep a supportive oversight of national-level projects in Key Areas and promote cross-border planning and coordination.)

Key Area 1: Bardia and Suklaphanta to Dudwa National Parks

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

A major potential wildlife viewing tourism circuit links the protected areas of Royal Bardia National Park and Suklaphanta Wildlife Reserve Nepal with Dudwa National Park in India, extending also to Jim Corbett National Park and Nainital. Improved roads and border facilities will encourage travel operators to package this circuit when security improves.

1.1 Dhangadi Airport improvements;

1.2 Border crossing facilities and wayside amenities in Far West Nepal;

1.3 Wayside amenities in Uttar Pradesh.

Key Area 2: Lumbini to India Buddhist Sites

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

The "Footsteps of Lord Buddha" circuit is already the most popular Buddhist circuit; the "Footsteps of Lord Buddha" circuit includes Lumbini, Kapilavastu and associated sites in Nepal and in India, Kushinagar, Sarnath, Nalanda, Rajgir and Bodh Gaya. To take advantage of growing trends, the Footsteps of Lord Buddha circuit needs to be further developed as the key product to deliver SASEC’s "Buddhist Heartland" positioning.

2.1 Road improvements in India;

2.2 Wayside amenities in India;

2.3 Visitor facilities and interpretation in India;

2.4 Improved visitor facilities in Nepal;

2.5 Bhairahawa airport improvements;

At the 6th TWG meeting in Colombo it was agreed that this project is a logical “flagship program” for the TWG.

ADB will prepare the scope of a TA grant to study the feasibility of a SASEC Tourism Development Project. The study will include tourism development, on the Ajanta-

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Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

2.6 Water supply infrastructure improvements at Lumbini.

Ellora model, for the Buddhist Heartland (Lumbini to India).

Key Area 3: Kanchenjunga to Sikkim and Darjeeling

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

There is good potential to expand the already strong ecotourism flows of Sikkim and Darjeeling by developing cross-border trekking and other tourism linkages between the Kanchenjunga Conservation Area (KCA) in Nepal and Khangchendzonga National Park in Sikkim. Cross-border treks in the sacred landscape shared between East Nepal, West Sikkim and PR China (TAR) could become a unique ecotourism / adventure product when security improves and border restrictions ease.

3.1 Road improvements and wayside amenities in Nepal;

3.2 A program of ecotourism improvements in the KCA;

3.3 An Ecotourism Plan for West Sikkim;

3.4 A visitor management strategy for North West Bengal.

Key Area 4: East Sikkim (Nathu La) to West Bhutan

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

Good tourism development potential arises from the newly opened Nathu La road from Sikkim to the Chumbi Valley in Tibet. The cross-border "Nehru Trek" has the potential to be a signature subregional adventure trek product, combining three countries and

4.1 Tourism Awareness Program in Sikkim;

4.2 Wayside amenities in Sikkim.

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Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

appealing to domestic and international markets.

Key Area 5: Manas Protected Areas

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

The World Heritage Site status of the Manas national parks on either side of the border between India and Bhutan brings excellent tourism potential. The Manas protected areas could be a showcase of the subcontinent’s wildlife tourism. Current security constraints need to be overcome. Opening the land border at Geylegphug would create ecotourism circuits within Bhutan (Shemgang). The combined Manas protected areas have the potential to be a world ecotourism model.

5.1 A joint Ecotourism Strategy for Bhutan and India’s Manas protected areas;

5.2 A handicraft program based in India.

Key Area 6: Sundarbans Protected Areas

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

The World Heritage Site mangrove forests of the Sundarbans are visited from Bangladesh and India. Strong domestic visitor flows come from Dhaka and particularly from Kolkata. Opportunities exist for joint marketing, sharing responses to conservation management issues and the careful introduction of new ecotourism

6.1 Joint Sundarbans Ecotourism Strategy;

6.2 Village tourism homestay / jungle camp program in Bangladesh;

6.3 Community-managed

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Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

circuits combining the two countries. Tourism has a serious role as an alternative livelihood to reduce dependency on the fragile environment. More participation by the local community in tourism is the key.

conservation interpretation center in the Indian Sundarbans;

6.4 Community-managed conservation interpretation center in the Bangladesh Sundarbans.

Key Area 7: Paharpur to Siliguri and Bagdogra

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

The land border between India and northern Bangladesh at Banglabandh means that the Buddhist circuits of Paharpur can be promoted from the north using the Bagdogra and Guwahati gateways. Tour operator awareness, poor roads, limited accommodation and security are constraints. Paharpur monastery and its surrounding sites is an icon product in SASEC’s Buddhist Art and Archaeological positioning.

7.1 Wayside amenities between Bagdogra and Paharpur to Dhaka;

7.2 Paharpur Monastery excavations.

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Key Area 8: Mainamati to Pilak, Tripura

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

Developing the Mainamati to Pilak Key Area will establish a new Buddhist circuit product. There is ecotourism potential in unique forests in both India and Bangladesh that protect the endangered Chashma or spectacled monkey. Development of the Mainamati to Pilak Buddhist circuit will require cooperation between the Government of Bangladesh on one side and the GoI and the State Government of Tripura on the other.

8.1 Excavations at Mainamati in Bangladesh;

8.2 Visitor amenities at Mainamati in Bangladesh;

8.3 Visitor amenities at Pilak, Tripura in India.

Key Area 9: East Bhutan to Arunachal Pradesh

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

The opening of the land border east of Trashiyangtse, Trashigang and Sakteng at the far-eastern end of the Great Himalayan Trail will create new adventure trekking linkages with Arunachal Pradesh (Tawang Monastery and Bomdila). Community-based styles of tourism will bring benefits to the remote eastern Bhutan and India’s North East. These opportunities will be further extended by re-opening the Samdrup / Jongkhar road crossing.

9.1 Adventure Trekking.

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Key Area 10: India’s North East States

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

With a strong pro-poor rationale, good opportunities exist to promote the "unexplored" North East of India. The ecotourism products of the North East - initially in Assam, Arunachal Pradesh and Nagaland – will produce some of the iconic features of SASEC tourism. With particular emphasis on cultural, ethnic and adventure products and careful recognition of their protected-area status, these little known destinations require tourism awareness-raising activities, improved air linkages and better security.

10.1 North East Marketing Strategy and Action Plan;

10.2 Wayside amenities in the North East;

10.3 Village homestay program in the North East;

10.4 Handicrafts program in the North East.

Key Area 11: Kathmandu Air Hub

Description National-level Project Ideas Cost and Financing Partners and Roles Time Frame Key Issues

Many air linkages within the subregion use Kathmandu as a hub. This, coupled with Nepal’s strong ecotourism and Buddhist circuit product focus and the future potential for growth in regional airlines, warrant special attention to the Kathmandu Valley as a key area.

11.1 Air traffic safety project;

11.2 Visitor Services Management Plan for World Heritage sites of Kathmandu.


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