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1. Sign-up to our newsletter for updates on calls for proposals, consulting opportunities or new research findingswww.competecaribbean.org Competecaribbean@iadb.org Clustering for exponential growth in the tourism sector In our study targeting American visitors published in 2019: Only 21% of respondents were familiar with CBT, but 79% said they were willing to try. That means … + 20million visitors are interested in community-based tourism (CBT)Covid is reducing the number of visitors but we can get each one of them to spend a lot more !

2. Why Compete Caribbean?ROSECaribbeanROSECaribbean19702014In the early seventies, real GDP per capita* was 4x higher in the Caribbean than that of the Rest Of Small Economies (ROSE) of the world. Today it’s smaller at 0.9* A measurement of the total economic output of a country divided by the number of people and adjusted for inflation.

3. A consortium of donors Phase 1 (USD$32.5M) completed in 2017 successfully:12,000 jobs created41% increased in revenues ($153M)23% increased in exports ($37M)Phase 2 (USD$22.5M) started in 2017Same goals but greater focus on Women-owned firms (WOF)Climate change3What is Compete Caribbean? A technical assistance program for PSD

4. Productivity & Innovation in the private sectorBusiness climate reforms Pillar 1Pillar 2(a) Clusters and value chainsInclusivenessClimate changeSustainabilityCatalytic impactGenderOECS and Jamaica ecosystemCorporate venturing (regional)Social innovation in BelizePublic procurement for innovation (regional)(b) Entrepreneurship & innovation ecosystem(c) Technology adoption and diffusionTechnology Extension Services (TES)Blue Tech ChallengeFintech and blockchain innovationAg-Tech pilotsCluster capacity building in vulnerable countriesFour calls for cluster proposals (a) Policy & regulatory reformsFocused on business and innovation climate, particularly DB indicators(b) Institutional strengtheningFocused on evidence-based policy-making(c) Knowledge products & disseminationEnterprise Surveys and othersHow we execute? The Compete Caribbean Partnership Facility (CCFP): 2 pillars, various instruments

5. What is a cluster? Why clustering?Local proximity: Face-to-face interactions to build trust and share knowledgeA mix of firm size – micro, small, medium and large, local, internationalConnections with academic and training institutions Lead by the private sector, supported or facilitated by BSOsCommon vision and consensus on top priorities to growStarts with quick wins: address low-hanging fruitsKey success factors / Best practicesMultiplies spillover effect in communitiesIncrease protection of natural assetsThe combination of cooperation and competition fosters innovation over timeHigher productivity, higher wagesMore successful start-upsAttracts Foreign Direct Investment (FDI)Benefits for gov./NGOs/dev. agenciesA cluster is a group of interconnected firms operating near each other that collaborate and compete to obtain a larger share of the global market. Joint marketing  increase global market share Access to different or larger marketsTraining  shared resources eg: tour guidesAdvocacy  investment in infrastructureResearch and product developmentBetter coordinationBenefits for firmsEssential post-Covid

6. Call for cluster proposals in 2017: only 19% of applications from tourism Insufficient given the impact on inclusive and sustainable economic development in the Caribbean Capacity building effort of BSOs to support clusters, including CTOCBT projects can represent the best example of cluster initiativesinvolves collaboration among MSMEs and large firmsintegrates business relationships at the local, national and international levelsAddress coordination failures A Community-Based Tourism (CBT) toolkit developed and shared with MoT and the private sector6Clustering is powerful but not easy!

7. What? The CBT toolkit includes 5 tools that people can use to achieve specific purposeToolDescriptionCOMMUNITY TOURISM DEVELOPMENTUseA frame of reference to assess the community’s capacity/needs for CBT based on key success factors (KSFs). ENTERPRISEDEVELOPMENTTemplate to prepare an inventory of tourism assets found in the community (businesses, experts , infrastructure, natural sites, etc.)Document and assess the number, range & quality of tourism assets that can be used to increase tourism revenues.Tourism Assets Inventory Assess market readiness and gaps to identify priorities that can be included in a project plan and/or funding proposalCBT Diagnostic+/-2-page template to collect information about the types of experiences found in the community to attract visitors.MARKET DEVELOPMENTPromote the diversity of CBT opportunities in the CaribbeanCBT ProfilesDatabase of CBT profiles in the Caribbean?CBT Enterprise handbookUser-friendly business guide to develop profitable CBT enterprises that return benefits to communities as well.Start, improve, formalize and expand CBT business operationsCommunity-Based Tourism (CBT) toolkitPurposeAssessment of willingness-to-pay of American visitors for experiences that can be offered by Caribbean MSMEs. PRODUCT DEVELOPMENTRefine, expand and price the product offerings to increase tourism spendingConsumer research in American market by Euromonitor12345FilesCBT Enterprise Handbook.pdfBusiness Support Services.pdf (by country)Facilitator’s guide.pdf3 handouts for learning.doc Consumer research.pdfTraining manual.pdfPower presentation.pptDestination profile template.doc10 destination profiles already created Tourism Asset Inventory.xlsDiagnostic tool: Questionnaire and CBT framework.xls

8. 8Community tourism developmentExcel template to prepare an inventory of assets found in the community which are valuable for CBT developmentTourism Asset InventoryI. Accommodations1.1 Bed & breakfast1.2 Cabin / lodge / ecolodge1.3 Campground1.4 Apartment / villa1.5 Guest house/ inn 1.6 Homestay1.7 Hostel1.8 Hotel 1.9 OtherII. Attractions2.1 Festivals & Events 2.2 Culture & Heritage Attractions 2.3 Natural Attractions 2.4 General Attractions III. Services3.1 Food & Beverage 3.2 Shopping & Markets 3.3 Transportation IV. Experiences (Tours & Activities)4.1 Culture & Heritage 4.2 Water-based Adventure 4.3 Land-Based Adventure LocalV. Experts 5.1 Tourism 5.2 Natural and Cultural Heritage 5.3 Performing Arts 5.4 Visual Arts VI. Infrastructure6.1 Security 6.2 Health 6.3 Visitor 6.4 Other 1

9. 96 types of assets, 19 sub-types:171 ideas of assets 1 171 ideas of what can be used / improved in a community to generate more revenues from visitors

10. 10Community tourism developmentFrame of reference to assess market readiness and gaps based on KSFs, and discuss priorities that can be included in a project plan and/or funding proposalDiagnostic tool2Governance and Leadership Community ParticipationAccess to ResourcesInfrastructure & ServicesHuman ResourcesTourism Assets Product Development and Marketing7 dimensions that must be assessed for community tourism developmentFor each dimension, market readiness can be assessed for 28 key success factors in CBT

11. 11The KSFs facilitate discussion to identify priorities and reach consensus 7 dimensions and 28 success factors for effective community-based tourism (CBT)

12. 12Questions suggested to facilitate:Assessment processDiscussion with community membersPrioritizationFundraising

13. 13What is it? The CBT toolkit includes 5 tools that people can use to achieve each purposeToolDescriptionCOMMUNITY TOURISM DEVELOPMENTUseUsersA frame of reference to assess the community’s capacity for CBT based on key success factors (KSFs). ENTERPRISEDEVELOPMENTTemplate to prepare an inventory of tourism assets found in the community. Inventory number, range & quality of tourism assets in community, identify strengths and gapsTourism Assets Inventory Community OrganizationsNational Tourism Organisations  (NTOs)Business Support Organisations (BSOs)Assess market readiness and gaps to identify priorities that can be included in a project plan and/or funding proposalCBT DiagnosticDevelopment agenciesCommunity organisations+/-2-page template to collect information about the types of experiences found in the community to attract visitors.MARKET DEVELOPMENTPromote the diversity of CBT opportunities in the CaribbeanCBT ProfilesDatabase of CBT profiles in the Caribbean?CTO representatives in USA, UK and CanadaNTOsTour operatorsVisitorsCBT Enterprise handbookCBT Enterprises owners & managersNTOsBSOsUser-friendly business guide to develop profitable CBT enterprises that return benefits to communities.Start, improve, formalize and expand CBT business operationsCommunity-Based Tourism (CBT) toolkitPurposeAssessment of willingness-to-pay of American visitors for experiences that can be offered by Caribbean MSMEs. PRODUCT DEVELOPMENTRefine, expand and price the product offerings to increase tourism spendingConsumer research in American market by EuromonitorEntrepreneursBusiness Support Organisations (BSOs)National Tourism Organizations  (NTO’s)12345

14. 14ENTERPRISE DEVELOPMENTUser-friendly guidebook to help entrepreneurs develop profitable CBT enterprises that return benefits to communities.CBT Enterprise handbook31.0 The Global Travel Industry 1.1 Many Different Parts 1.2 The Global Scene 1.3 Impacts of Tourism 1.4 Global Tourism Trends2.0 Understanding CBT2.1 What is Community-Based Tourism (CBT)?2.2 What are the Benefits and Drawbacks of CBT? 2.3 Community-Based Tourism in the Caribbean Types of CBT Experiences in the Caribbean: 20193.0 Protecting and Involving Your Community3.1 What is Cultural Authenticity?3.2 How Can You Protect and Benefit Your Community?4.0 Planning your CBT Business 4.1 What is a ‘Market Ready’ Tourism Business? 4.2 What are the Steps to Starting a CBT Business?4.3 What Goes into a Business Plan?4.4 Where Can I Get Help for My Business Plan?5.0 Understanding Your Markets 5.1 What is Market-Driven Research?5.2 Which Types of Visitors Have the Most Potential?5.3 Who is my Ideal Guest?6.0 Developing Your Product6.1 What is Packaging?6.2 What Types of CBT Packages Do Visitors Buy?6.3 What are the Essential Qualities of a CBT Product?6.4 What Product Can I Offer?6.5 What are the Steps in Product Development?7.0 Pricing Your Product7.1 How Does the Travel Distribution System Work?7.2 What Commissions Do the Travel Trade Expect?7.3 What are Net and Retail Rates? 7.4 How Do I Calculate My Net Rate? 7.5 How Do I Calculate My Retail Rate?

15. 15ENTERPRISE DEVELOPMENTUser-friendly guidebook to help entrepreneurs develop profitable CBT enterprises that return benefits to communities.CBT Enterprise handbook38.0 Meeting Visitor Expectations 8.1 What is Values-Based Guest Hospitality?8.2 How Can I Create a Sense of Place?8.3 What is Genuine Hosting?8.4 How Should I Prepare Guests for Their Visit?8.5 How Can I Learn from Feedback?9.0 Marketing Your Product9.1 What are the 4 Ps of Marketing?9.2 What Goes into a Marketing Plan?9.3 Why is Branding Important?9.4 How Do I Make a Marketing Content Library?9.5 Why is Online Marketing Important?9.6 What are the Best Ways to Market?10.0 Developing Financial Management Skills10.1 Why Do I Need Financial Management?10.2 How Do I Estimate My Start-up Costs?10.3 How Do I Prepare an Annual Operating Budget10.4 How Will I Finance My Business?10.5 What are the Essential Financial Statements?10.6 What about Taxation and Reporting?10.7 Why Should I Get Professional Assistance?10.8 Checklist for Financial Success11.0 Building Your Support Network11.1 Building Your Support NetworkGlossaryAppendix 1: References and ResourcesAppendix 2: NTOs and CBT DevelopmentAppendix 3: Experience Development TemplateAppendix 4: Example Code of Conduct+ 13 directories of business support services with contacts for relevant institutions needed to register a business, obtain food handling certificate, etc.

16. The CBT enterprise handbook is based on the market-Readiness modeldeveloped by Small Planet Consulting and others

17. 17What is it? The CBT toolkit includes 5 tools that people can use to achieve each purposeToolDescriptionCOMMUNITY TOURISM DEVELOPMENTUseUsersA frame of reference to assess the community’s capacity for CBT based on key success factors (KSFs). ENTERPRISEDEVELOPMENTTemplate to prepare an inventory of tourism assets found in the community. Inventory number, range & quality of tourism assets in community, identify strengths and gapsTourism Assets Inventory Community OrganizationsNational Tourism Organisations  (NTOs)Business Support Organisations (BSOs)Assess market readiness and gaps to identify priorities that can be included in a project plan and/or funding proposalCBT DiagnosticDevelopment agenciesCommunity organisations+/-2-page template to collect information about the types of experiences found in the community to attract visitors.MARKET DEVELOPMENTPromote the diversity of CBT opportunities in the CaribbeanCBT ProfilesDatabase of CBT profiles in the Caribbean?CTO representatives in USA, UK and CanadaNTOsTour operatorsVisitorsCBT Enterprise handbookCBT Enterprises owners & managersNTOsBSOsUser-friendly business guide to develop profitable CBT enterprises that return benefits to communities.Start, improve, formalize and expand CBT business operationsCommunity-Based Tourism (CBT) toolkitPurposeAssessment of willingness-to-pay of American visitors for experiences that can be offered by Caribbean MSMEs. PRODUCT DEVELOPMENTRefine, expand and price the product offerings to increase tourism spendingConsumer research in American market by EuromonitorEntrepreneursBusiness Support Organisations (BSOs)National Tourism Organizations  (NTO’s)12345

18. 18PRODUCT DEVELOPMENTAssessment of willingness-to-pay of American visitors for experiences that can be offered by Caribbean MSMEs. Consumer research4Refine, expand and price the product offerings to increase tourism spending What are visitors interested in spending their money on? How much are they willing to pay? How can Caribbean MSMEs take advantage of this?Increase employment and revenues for people across sectors: farming, agro-processing, logistics, transport, tourism, creative industries, furniture, etc.

19. 1915 activities prioritized out of 30 considered based on potential benefits for Caribbean MSMEs

20. 2015 experiences prioritized based on interest level of tourists and benefits for Caribbean MSMEsThese activities show highest benefits for the region.They are most interesting to US tourists.A) PrioritizeInterest level among tourists is low, as are the benefits for the Caribbean compared to the rest of the activities.Requires repositioning to strengthen both.D) RedefineBenefits for the Caribbean are high.US tourists show low interest; therefore, promotion and repositioning are required.B) Promote internationallyUS tourists are highly interested in these.They bring lower benefits to the region - therefore they need further development.C) Develop locallyCaribbean benefits*Interest level of tourists**LowHighLowHighB) Promote internationallyA) PrioritizeD) RedefineC) Develop locally*Caribbean benefits refer to the combination of metrics from the scorecard (community involvement, employment potential, capacity, activity price, and number of businesses)**Interest levels based on consumer survey, N = 629C) Develop locallyFood-related

21. 21The four top activities that can generate the most revenues for Caribbean businesses involved agrifood Traditional CuisineMost are willing to pay as much as US$100 for their experience.Average current price is $10Half of respondents are willing to pay more for food sourced locally, and nearly 40% for organic produce.Farm to TableMajority would pay as much as US$100 for their experience.About half of respondents are willing to pay more if the experience is locally sourced, embraces environmental sustainability, and offers VIP options or access.Food & Beverage TourMost are willing to pay up to US$300 per activity.35% are willing to pay more for attributes like Organic certification, locally sourced, benefits everyone fairly, etc.Around 20% are willing to pay at least 25%-50% more for VIP options and access.

22. 22Each activity analyzed: preferred characteristics, who to target, how to market, how to price, etc. Local TourismMost are willing to pay as much as US$300 per activity.Over half are willing to pay more if they know the ticket price % that goes back to the community and VIP options.Farm tourWillingness to pay varies from $31 to $300Current price range currently offered in the Caribbean: $20-150Should include transport and be combined with other activities

23. Deal breaker: Perception of safety and hygieneInform customersCertifications to show that standards are metUse community tourguides Visitors want to know, see and feelGrown without chemical OrganicSourced locallyProviding benefits to local communityFun to experience Research and book onlineRaise awareness 23Other key findings from survey responsesTell them! Show them!Only 21% of respondents were familiar with CBT, but 79% said they were willing to try once they became aware. Agritourism tour guides?~30million visitors to the Caribbean in 2018: that means a market potential of 23million visitors to our communities!!

24. 24What is it? The CBT toolkit includes 5 tools that people can use to achieve each purposeToolDescriptionCOMMUNITY TOURISM DEVELOPMENTUseUsersA frame of reference to assess the community’s capacity for CBT based on key success factors (KSFs). ENTERPRISEDEVELOPMENTTemplate to prepare an inventory of tourism assets found in the community. Inventory number, range & quality of tourism assets in community, identify strengths and gapsTourism Assets Inventory Community OrganizationsNational Tourism Organisations  (NTOs)Business Support Organisations (BSOs)Assess market readiness and gaps to identify priorities that can be included in a project plan and/or funding proposalCBT DiagnosticDevelopment agenciesCommunity organisations+/-2-page template to collect information about the types of experiences found in the community to attract visitors.MARKET DEVELOPMENTPromote the diversity of CBT opportunities in the CaribbeanCBT ProfilesDatabase of CBT profiles in the Caribbean?CTO representatives in USA, UK and CanadaNTOsTour operatorsVisitorsCBT Enterprise handbookCBT Enterprises owners & managersNTOsBSOsUser-friendly business guide to develop profitable CBT enterprises that return benefits to communities.Start, improve, formalize and expand CBT business operationsCommunity-Based Tourism (CBT) toolkitPurposeAssessment of willingness-to-pay of American visitors for experiences that can be offered by Caribbean MSMEs. PRODUCT DEVELOPMENTRefine, expand and price the product offerings to increase tourism spendingConsumer research in American market by EuromonitorEntrepreneursBusiness Support Organisations (BSOs)National Tourism Organizations  (NTO’s)12345

25. 25MARKET DEVELOPMENT2-page template to collect information about the types of experiences found in the community to attract visitors.CBT destination profile5To promote the rich cultural diversity in the CaribbeanDatabase of CBT destinations in the Caribbean

26. More than half of Caribbean MSMEs are underbanked for a variety of reasons. The lack of access to cost-effective digital payment solutions prevents access to potential customers – both online and offline26How to leapfrog: Access to digital payment solutions* The role of fintech and regulations in enabling Caribbean MSMEs to grow and innovate, Compete Caribbean, 2019** Estimating the Size of the Informal Economy in Caribbean States, IDB publication 2017, p.4 Research published in 2019 revealed that Caribbean firms are disadvantaged compared to their peers in other countriesThe Role of Fintech and Regulations in Enabling Caribbean MSMEs to grow and innovate*In 2017, the size of the informal sector in the Caribbean represents 35% to 44% of GDP**  transactions among micro and small businesses are done in cash but visitors come with limited cash despite having a high willingness-to-pay for Caribbean products and serviceshttps://docs.google.com/forms/d/e/1FAIpQLSeDIMXUNLl2gsJE1IdziOkVIkthwfcIe3VfcOsPNPb7fETi5g/viewformComplete this 5min survey:

27. Hythe, Maxwell Main RoadChrist Church, Barbados. Tel: 1. 246. 627. 8500 • Fax: 1 .246. 429. 8869Email: competecaribbean@iadb.orgThank you!Sign-up to our newsletter: www.competecaribbean.orgA multi-donor facility that provides technical assistance to increase the competitiveness of the Caribbean private sector. The results expected are increased employment, revenues and exports using an inclusive and sustainable approach.

28. Adventure and indigenous tourism in Guyana Protection of the arapaima fish for sports fishingPure GrenadaGlobal branding and market positioningTreasure Beach in JamaicaCapacity building of CBTEs and DMOSt.Lucia: mobile app for local sourcingFood & rum festivals involving communities and authentic food (chef for development) 28Examples of cluster projects

29. 29The four top activities that can generate the most revenues for Caribbean businesses involved agrifood Beach TourismTourism activity that is centered around the marine environment. It includes visits to coastal towns and recreational activities related to enjoying the sun, sand, and sea including sunbathing, snorkeling, paddle boarding, scuba diving, walking/playing on the beach, etc.)EcolodgeA tourist accommodation facility that is ecologically designed and managed to have a minimal negative impact on the natural environment and host community in which it is situated. Ecolodges are mainly located in a remote destination in nature, and are often built from natural materials. Farm to Table A culinary experience that includes products that are locally grown or sourced. This may include a farm tour, harvesting ingredients, and/or a cooking class in addition to a meal/tasting using locally sourced ingredients.Farm TourAn activity linked to a tour/visit to an agricultural farm. This can include organic farm tours, or tours of specialized crops such as coffee and cacao plantations, spice farms and medicinal herbs. Farm tours may include meals, food tastings, and/or accommodations.FestivalFestivals are events centered on celebrating or commemorating some aspect of local indigenous culture, heritage and traditions, spiritual practice, gastronomy, film and/or music of a country, community, religion, ethnic or social group. Festival Tourism is a popular niche market segment, defined as travel for the main purpose of attending festivals.Food and Beverage TourExpeditions that include visits/excursions linked to food and related products and activities. Tours might highlight the process, include a tasting and/or culinary cooking activity. Popular tours include rum, coffee, spices, and chocolate.Heritage SiteHistorical, cultural, archeological and indigenous sites and ruins such as monuments, buildings, structures and cemeteries of significant local value or where political, military, cultural or social history has been preserved.HomestayA homestay property is an alternative accommodation in a private residence/local home that accommodates paying guests. Travelers usually stay with a family and experience their cooking. Homestays can be offered by individuals and their families or by structured organizations.

30. Indigenous TourismTourism activity that is owned, operated, and/or managed by members of indigenous communities, and offers unique and authentic experiences to visitors while also contributing to sustaining local livelihoods, protecting valued socio-cultural traditions, and the natural and cultural heritage resources of the community. Local TourismTourism activity that offers experiences linked to the local/host community. May include multiple activities across various tourism niches and categories, with an aim to offer an authentic and local experience. Experiences may be packaged to include transportation, accommodation, meals, a guide, etc.School Exchanges and Cultural ImmersionTravel experience which has as a primary motivation the tourist’s engagement and experience in learning, self-improvement, intellectual growth and skills development. Includes a broad range of products and services related to academic studies, skill enhancement, school trips, career development courses and language learning among others. Experiences can be focused on specific subject areas or aspects of culture where learning is the primary goal, and travel is a complementary criterion.Traditional CuisineActivities in the destination where the local food and beverage including agricultural products, gastronomic offerings and methods of food preparation are the primary pull factors and key aspects of the experience. Can be offered at family and local restaurants including the traditional fish fry.Traditional Health and WellnessTourism that is based on locally significant wellness activities, done by tourists with the principal purpose of improving their health and wellbeing. Examples may include mineral baths, spa treatments, courses on ancient herbs and their uses, etc. Volunteer with Local ExperienceTrips taken to a destination for the purpose of assisting the host community, often with a social cause as the primary motivation with travel as a complementary feature. Examples include voluntourism for reconstruction in the aftermath of a natural disaster, community development activities, conservation, and clean-ups.WellnessActivities that offer preventive, lifestyle-enhancing, relaxing, pampering and healing treatments.Experiences can include yoga, mindfulness, and meditation retreats including detox retreats, and retreats guided by expert nutritionists among other specialists.Wildlife Tourism in Natural HabitatTrips to destinations with the main purpose of observing the local fauna. Includes birdwatching, turtle watching, and generally observing wildlife in its natural habitat. This does not include reserves or sanctuaries.Source: Caribbean Tourism Organization, United Nations World Tourism Organization, and Euromonitor International