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Ownership
by Valere Tjolle

PLANETA FORUM

This article was prepared in conjunction with the Ethical Travel Dialogue in July 2006.

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PHOTO GALLERY: etd


Why do donor-funded tourism projects in developing countries go belly-up so often? Frequently it's because sufficient ownership has not been taken by the relevant stakeholders.

So, why is ownership necessary? Any tourism project needs a great deal of support to succeed. At the very least it needs to have the enthusiastic support of its main local stakeholders -- management, staff and families, local community members, local businesses, local and national tourist boards and, just as importantly, the global tourism community.

Tourism is as emotional as it is practical. It is simply not sufficient to come up with a tourism project that is technically perfect to ensure its success. This is where multinational tourism providers such as hotel groups score.

Effective leisure businesses do not need ownership from their staff. They train it into them -- carrot and stick method. They don't need ownership from external stakeholders, their brand has already delivered that and carved its niche in the marketplace. Plus, they know that, to succeed, management must take responsibility for their project's profit, they have a simple task, making money is relatively easy.

Donor-funded tourism projects are different, of course. They understandably require more than money as return for their soft loans and technical assistance, often donors also require modern western development issues to be taken into consideration like empowerment of women and disempowered minorities, transparency, capacity-building and a series of other outputs.

Furthermore the documentation required from a donor-funded project is often bureaucratic to say the least. And, when the donors withdraw, the project still needs to be profitable to be sustainable.

Clearly, the appropriate way to guarantee that a project performs to its utmost possibilities is to carefully create and sustain ownership by the relevant stakeholders.

We start with a problem, of course. Many donor-funded tourism projects are located in less developed countries with a less developed understanding of a more developed concept like "Ownership". In less "Democratic" situations, frequently "Persuasion to participate" takes on a stronger and more forceful tone a million miles away from a free choice to "Own" a project.

Donor-funded tourism development can be a very effective method of utilising a global industry to augment a country's income-stream. The tourism industry generated can employ people and provide much-needed income. But, how can it provide equal partnerships when one of the players is providing the funding and the expertise? This must be particularly true in the many new destinations that have little previous tourism experience.

So, who's money is silently dominating the conversations? The donors. Who's creating the partnerships? Often the consultants, employed by the donors who provide the technical assistance. Who owns the language of development? The donors. Who needs the money? The people who will benefit if they take ownership.

The fact is that destinations often need the jobs, they often need the economic revenues too. Donors often provide all the funding and the technical assistance to make the project work.

Competition for donor-funding is fierce, the acquisition of a project not only offers opportunities for growth, but is also a source of pride. It's easy to believe that people will often make themselves look like they support a project even if they understand little about it, even if they believe it will fail.

So, how to gain ownership? Here's a suggestion for a process that may work.

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1. Initial Ownership of project

I think that it needs to be made very clear from the outset whose idea the project is and who has been involved in sponsoring it.

-- Has the idea come from a local community member or group?
-- Is the project to be created as a result of a local or national tourist board initiative?
-- Is the embryo project the result of a partnership between a consultant and a local NGO?
-- What consultative processes have already taken place, who was involved and what were their views?

2. Training and participation

It is clear that ideas and attitudes expressed by development agencies, other NGO's and the global tourism industry are not necessarily shared or understood by the local people who have to make projects work even though they have no choice but to accept them if the project takes place.

Before anything happens, I think that it is of fundamental importance for a period of potential participant tourism training to be provided. This could be fulfilled on site, but, most importantly, an element of training-by-working should take place in the industry off-site in a developed tourism area and, where possible in commercial tourism companies.

This component could be a major output in itself and could lead to potential further tourism development.

3. Identification of needs

All stakeholders need to be LISTENED to. Local business people. local mothers and fathers, local government, local politicians, local gossips, local media and global potential customers all need to be consulted so that their needs are understood and so that ongoing discussions may take place and that their ownership of the project gained and augmented. It is commonly believed that tourism is marketed simply through commercial channels. This is simply not true, the locals not only have a great deal to do in creating the product -- they frequently market it too, through word of mouth.

4. Core Group Visualisation

For a healthy development to take place it needs to be be perceived successful and fulfilling. Electing a core group that they may visualise the successful project and promote it in the neighbourhood amongst their peers provides not only ownership but fuller and deeper understanding.

5. Initial Project Terms of Reference

The initial TOR's really need to be produced by the project core group and presented to the wider group of stakeholders, then, maybe to a funding or technical assistance agency.

I think that the above process implementation would deliver the transparency and understanding necessary for a wide ownership. At the very least it would provide a tourist-industry basic education and the building blocks that are needed for future development.


AUTHOR

Valere Tjolle is recognised as an innovator, authority and key proponent of direct and alternative marketing and product creation in the travel and tourism industry. He has more than 40 years in-depth, practical "Hands-on" experience. Projects since 1995 have included tourism developments in Africa, USA, UK and Eastern Europe. Valere is currently writing “You Lucky People”, a witty and incisive history of the package-tour business. Valere blogs online http://www.totemtourism.blogspot.com.


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