Tourism for Development Rebuilding Tourism Competitiveness: from Crisis to Sustainability Blue Tourism in Islands and Small Tourism-Dependent Coastal States: Tools & Recovery Strategies © 2022 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution - Please cite the work as follows: “World Bank. 2022. Blue Tourism in Islands and Small Tourism-Dependent Coastal States: Tools and Recovery Strategies”. Lead Authors: Jessie McComb, Alba Suris, Anna Spenceley, Louise Twining-Ward. Technical contributors: Antonio Manuel Baptista, Jose Miguel Villascusa Cerezo, Erika Harms, Dalia Soares Gomes, Lamin Jobe, Bastien Loloum, Cristina Navarrete Moreno, Michelle Gomes Souto, Zenaida Hernandez Uriz and Beth Wright. Peer reviewers: Vincent Palmade, Juliana Castaño-Isaza, Milen Dyoulgerov, and members of the Global Tourism Team. Support: This best practice guidance note and the associated inventory of tools are the product of a collaboration of the World Bank Group and the Tourism Action Coalition for a Sustainable Ocean (TACSO)1 with financial support from PROBLUE.2 All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Design: Titanium Room for the World Bank 1 TASCO is a coalition that brings together businesses, the financial sector, NGOs, and IGOs, seeking to ensure coastal and ocean-based tourism is sustainable, resilient, addresses climate change, reduces pollution, supports ecosystem regeneration and biodiversity conservation and invests in local jobs and communities. https://oceanfdn.org/projects/tourism-action-coalition-for-a-sustainable-ocean/ 2 PROBLUE is an umbrella multi-donor trust fund, administered by the World Bank, that supports the sustainable and integrated development of marine and coastal resources in healthy oceans. https://www.worldbank.org/en/programs/problue Front cover image: Maldives Page 2 Jamaica Page 3 Contents Acronyms 7 Glossary 8 Executive Summary 10 Introduction to Blue Tourism 14 The Impact of COVID-19 on SIDS and Small Tourism-dependent Coastal States 16 Impact by Region 18 Recovery Trajectories 22 Impact on the Environment 24 Recovery Pathways 27 Short-Term Responses 29 Medium-Term Responses 35 Mapping Longer-Term Sustainability Pathways 38 Challenges Facings Tourism in SIDS 39 Accelerated Market Demand Trends 40 Strategies for Longer-term Sustainability 42 Core Sector Enablers 46 Tools to Inform the Transition: the Blue Tourism Resource Portal 47 Filling the Gaps: Research and Operations 49 Annexes 50 Annex 1. List of SIDS 51 Annex 2. Examples of Sequenced Pandemic Responses Supporting Tourism Sector Recovery 52 Annex 3. SIDS Knowledge Priorities and Examples of Knowledge Hub Resources 55 Annex 4. Further Resources & Toolkits for Blue Tourism in SIDS 59 Page 4 List of Tables Table 1. Examples of Short-term Island Crisis Responses to Support the Tourism Sector (February-August 2020) 32 Table 2. Examples of Medium-term Recovery Responses to Support the Tourism Sector (November 2020-April 2021) 36 List of Figures Figure 1. Phases of the Blue Tourism Project 11 Figure 2. Mapping Longer-term Sustainability Pathways 13 Figure 3. Blue Tourism Transition 15 Figure 4. SIDS International Tourism Revenues, Share of Total Exports (2019) 17 Figure 5. SIDS 2020 and 2021 Range of GDP Performance by Region 19 Figure 6. International Travel Restrictions Index & International Seats Capacity Index for SIDS by Region 20 Figure 7. Relationship between 2021 Economic Performance and Travel Restrictions in Selected SIDS, by Region 20 Figure 8. Relationship between 2020 Economic Performance and Tourism Dependence in Selected SIDS, by Region 21 Figure 9. Arrivals from EAP to 12 Pacific Selected SIDS, Apr 2019-Mar 2020 22 Figure 10. Arrivals from EAP to 12 Pacific Selected SIDS, Apr 2020-Mar 2021 22 Figure 11. International Tourist Arrivals in 2019, 2020 and 2021 23 Figure 12. Relationship between Vaccination Rates and 2021 Economic Performance in Selected SIDS, by Region 23 Figure 13. Potential Impacts of COVID-19 in Destinations and the SDGs 24 Figure 14. Changes in Visitation to Parks and Outdoor Spaces during COVID-19 In Selected SIDS 26 Figure 15. COVID-19 Deaths and Travel Restrictions Index in the Caribbean and in the Dominican Republic 30 Figure 16. Percentage of Fiscal Policy Responses to the COVID-19 Crisis, by Country Income Group as of June 30, 2021 31 Figure 17. Economic Relief Measures in Response to COVID-19 in the Caribbean as of June 2020 34 Figure 18. COVID-19 Impacts in Four OECS Countries 36 Figure 19. Mapping Longer-term Sustainability Pathways 38 Figure 20. Relationship between Share of Cruise Visitors and Expenditure per Arrival 39 Figure 21. Options for Building more Diversified and Resilient Tourism in SIDS 42 Figure 22. Categories of Tools and Resources in the Blue Tourism Inventory 48 Figure 23. Green, Resilient, Inclusive Development (GRID) Framework for Tourism Intervention 49 Page 5 List of Boxes Box 1. Pacific SIDS Focus 22 Box 2. Regional Examples of Environmental Impact of COVID-19 25 Box 3. Examples of Financial and Risk Management Instruments as an Alternative to Tourism Revenue 26 Box 4. Common Market Failures in Tourism 29 Box 5. Dominican Republic’s Travel Restrictions Policy 30 Box 6. Lessons Learned from COVID-19 Impacts on High-end and Community-based Tourism 34 Box 7. Digital Academy for Tourism: Portugal 35 Box 8. Jamaica’s Linkages Programs 43 Box 9. Wellness Tourism in Costa Rica 45 Page 6 Acronyms ANZ Australia and New Zealand Banking Group BEST Business Employee Support and Transfer CARICOM Caribbean Community CBD Convention on Biological Diversity CBT Community-based Tourism CHTA Caribbean Hotel and Tourism Association CO2 Carbon Dioxide CREST Center for Responsible Travel CSR Corporate Social Responsibility CTO Caribbean Tourism Organization CV Cabo Verde DMO Destination Mmanagement Organization EAP East Asia Pacific EIA Environmental Impact Assessment FHTA Fiji Hotel and Tourism Association GDP Gross Domestic Product GHG Greenhouse Gas GSTC Global Sustainable Tourism Council ICT Information Communications Technology IFC International Finance Corporation IUCN International Union for the Conservation of Nature LCR Latin America and the Caribbean Region M&E Monitoring and Evaluation MSME Micro, Small and Medium Enterprise NBT Nature-based Tourism NGO Non-governmental Organization OECD Organization for Economic Co-operation and Development PADI Professional Association of Diving PATA Pacific Asia Travel Association PPE Personal Protective Equipment SDG Sustainable Development Goal SIDS Small Island Developing State SME Small and Medium Enterprises SSA Sub Saharan Africa STP São Tomé and Príncipe TG The Gambia UN United Nations UNEP United Nations Environment Program UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO United Nations World Tourism Organization $ United States Dollar WBG World Bank Group WCPA World Commission on Protected Areas WEF World Economic Forum WTTC World Travel and Tourism Council Page 7 Glossary Maldives Page 8 Adventure travel is a type of tourism, involving interpretation and education of all involved: visitors, exploration or travel with perceived (and possibly staff and the visited.7 actual) risk, and potentially requiring specialized skills Marine tourism refers to predominantly water-based and physical exertion.3 activities, such as sailing, scuba diving, and nautical Blue Economy is the sustainable and integrated sports (often carried out in coastal waters) and cruising.8 development of economic activities in healthy oceans. It refers to sustainable use of ocean resources for economic Marine and Coastal Tourism activities are typically growth, improved livelihoods and jobs, and ocean defined as all the activities that take place in coastal ecosystem health.4 and marine environments (cruises, recreational boating, fishing, diving, snorkeling, swimming, and surfing). Blue Tourism is a sustainable alternative of the However, if they are sustainable, not damaging to the traditional tourism practices in coastal and maritime environment and local cultures, and economically areas. It is typically a low impact activity focusing on the viable, then can be considered Blue Tourism activities, promotion of local communities and the conservation contributing to a blue economy. of natural resources,5 and is a sub-component of sustainable tourism. This contrasts with large-scale Small Island Developing States (SIDS): SIDS are a tourism characterized by beach resort tourism and distinct group of 38 UN Member States and 20 Non- international cruise tourism. -UN Members/Associate Members of United Nations Coastal tourism refers to tourism and recreation regional commissions that face unique social, economic, activities, such as swimming, sunbathing, sea kayaking, and environmental vulnerabilities.9 See Annex 1 for list and surfing, and other activities for which the proximity of these States. of the sea is an advantage, such as coastal walks and Small Tourism-dependent Coastal States: Small states wildlife watching.6 Coastal tourism also includes non- are defined by the World Bank as having a population beach activities such as mangrove tours, coastal cliffs of less than 1.5 million. Tourism dependent states are rock-climbing, etc. defined here as those that have more than 20 percent Ecotourism is defined by the Global Ecotourism Network of GDP from tourism. Small Coastal States that are as responsible travel to natural areas that conserves the tourism-dependent tend to exhibit the same constraints environment, sustains the well-being of the local people, as SIDS so are considered together. An example of a and creates knowledge and understanding through small tourism-dependent coastal nation is The Gambia. 3 Adventure Travel Trade Association. https://www.adventuretravel.biz/ 4 World Bank Group (2017). What is the Blue Economy? Retrieved from https://www.worldbank.org/en/news/infographic/2017/06/06/blue-economy 5 World Bank Group (2017). op. cit. 6 European Commission (n.d.). A European Strategy for more Growth and Jobs in Coastal and Maritime Tourism. Available at https://maritime-spatial-planning.ec.europa. eu/sites/default/files/doc_1.en__0.pdf 7 https://www.globalecotourismnetwork.org/definition-and-key-concepts/ 8 European Commission (n.d.) op. cit. 9 United Nations (n.d.). About Small Island Developing States. Available at: https://www.un.org/ohrlls/content/about-small-island-developing-states (Accessed: 7 July 2021). List of SIDS available at https://www.un.org/ohrlls/content/list-sids and in the Annex 1. Page 9 Executive Summary Small Island Developing States (SIDS) and small tourism-dependent coastal states (referred to in this report collectively as SIDS) have been the most gravely impacted by global climate and COVID-19 pandemic crises and are expected to face even greater economic and social challenges in the years to come. Mauritius Page 10 In the context of pandemic recovery, access to information and the Caribbean Tourism Organization. Illustrated is critical for good decision-making about the future. with real-world examples from SIDS, the guidance While information and research on sustainable and blue note incorporates best practices and lessons learned tourism in SIDS does exist, it is hard to find, difficult to on reopening to tourism over three phases: short term, analyze, and challenging to turn into policy guidance. medium-term and longer-term sustainability, before presenting some strategic pathways for ‘Building In response to this challenge, the World Bank, in Back Bluer’. The note ends by introducing the Blue collaboration with the World Resource Institute and Tourism Resource Portal —a database and e-library of the Ocean Foundation, has prepared a multi-phase information about blue tourism— and highlighting some project. Phase one is a comprehensive inventory of specific tools and resources that can address current gaps pertinent information and research for Blue Tourism in in knowledge. SIDS collated and compiled in 2021. Phase two is this guidance note which was developed to share some of the The report highlights some of the pre-existing challenges learnings from the inventory. The last phase of the work facing global tourism, particularly SIDS such as low is to convert the inventory into an online searchable market and product diversification, weak value chain e-library – The Blue Tourism Resource Portal, to facilitate linkages and vulnerability to climate change and natural public access to these data for all tourism stakeholders. disasters, along with five market trends accelerated by The portal is due to be launched in 2022. This resource is COVID-19. These are: complementary to the World Bank’s online directory on • The pandemic has increased interest in active, Tools and Resources for Nature Based Tourism.10 outdoor, and nature-based activities. A recent The result is a suite of resources aimed to assist those longitudinal study by Booking.com found that working in SIDS (including academics, practitioners, interest in staying at green accommodations has development partners, and the private sector), to grown by over 30 percent between 2016 and 2021.11 transition to more sustainable and resilient tourism. SIDS have strong assets and a huge potential to While these guidelines were focused on SIDS, many capitalize on adventure tourism, particularly around recommendations apply to other coastal countries and coastal activities, such as diving and snorkeling. territories that are reliant on tourism. • Tourists are placing more importance on sustainability The guidance note is a synthesis of findings from a and ensuring that the economic benefits of tourism literature review of the inventory of Blue Tourism reach local communities. Consumer market research Resources, consumer market research, and tourism undertaken post COVID-19 by Booking.com with a trend monitoring undertaken by the World Bank Global sample of 30,134 respondents across 32 countries Tourism Team since the start of COVID-19. It begins shows that 71 percent of them want to travel more sustainably (up 10 percent from 2021) and 53 percent with an assessment of the impact of COVID-19 on are more determined to make sustainable travel SIDS by region. The note includes a practical summary choices when they travel now than a year ago.12 of COVID-19 recovery pathways that will help SIDS develop more competitive and sustainable tourism • Increased concern about safety and health risks. sectors, combining knowledge from international and After their own vaccination status, destination regional agencies including the World Bank Group, UN hygiene, healthcare and travel restrictions are among World Tourism Organization (UNWTO), the World top COVID-19 concerns affecting travelers’ holiday Travel and Tourism Council (WTTC), the Organization decisions. Wellness and regenerative vacations are for Economic Co-operation and Development (OECD), growing in popularity.13 Figure 1. Phases of the Blue Tourism project 1. Inventory of Blue 2. Guidance Note 3. Blue Tourism Tourism Resources on Blue Tourism Resource Portal 10 https://oceantourism.org/portal/ 11 Booking.com (2021). Sustainable Travel Report 2021. June 2021. Available at https://globalnews.booking.com/download/1037578/booking.comsustainabletravelreport2021.pdf 12 Booking.com (2022). Sustainable Travel Report 2022. Available at https://content.presspage.com/uploads/685/booking.comsustainabletravelreport2022-newzealand. pdf?10000 13 World Bank Group (Forthcoming). New Tourism Demand Trends: Risk, Health and Sustainability in the Age of COVID-19, Washington, D.C. Page 11 • Longer lengths of stay and higher spending per trip. at least US$420 billion, about 30 percent of the US$1.4 International tourism receipts have recovered faster trillion global outbound travel market. SIDS have than volumes of visitors, increasing 15 percent in 2021 the resources to develop a strong adventure tourism to reach US$1,500 per tourist due to pent-up savings product, but there is a need to improve and expand on and longer lengths of stay.14 This provides opportunities safety and certification and skills of operators. for higher quality and long stay accommodation. 6. Building inter-regional travel with yachting. The • Digital service use is accelerating. Travelers, especially yachting industry constitutes a major but often the younger generations, are increasingly using digital undervalued revenue source building on SIDS strong services and tools to book directly and once in the marine assets. COVID-19 has added additional destination. Businesses with pre-existing digital skills complications to an already complex process of entry and investments are likely to recover faster. protocols for each country but investments in this area can yield high returns. Cross-destination coordination Based on these new trends and in response to the is crucial along with the development of eco-marinas pre-existing structural challenges and constraints to that do not damage sensitive corals or sea grass beds. competitiveness, seven strategies are explored in the final part of the report. These are: 7. Capturing higher value from cruise. As cruise tourism continues to grow, SIDS need to increase benefits 1. Shift towards more sustainable resorts. The growth and decrease costs from cruising through increased of socially conscious travelers is increasing pressure length of stay, decreased ship size, an increase in on resorts to increase local content, reduce the use fly-cruise models that start from a destination, and of plastics, and improve environmental management the attraction of environmentally responsible small with more circular business models.15 vessels and port facilities. 2. Building local supply chain linkages. Experience from There are costs associated with ‘building back bluer’ World Bank Group (WBG) operations and knowledge tourism: there will likely be winners and losers in the products offers insights on how to enhance local transition process. Critical enablers are explored in linkages and increase local benefit sharing. Linkage the report: coordination, connectivity, digitization, programs work with hotels, resorts and producers to conservation and capacity. understand where demand exists, and where import substitution can realistically occur. • For tourism to be part of a blue economy approach, cross-sector coordination is critical. Tourism needs 3. Digital nomads and long-term stays. According to a to be considered not as a discrete area but in recent research study, 15.5 million American workers connection with sustainable fisheries, agribusiness, currently describe themselves as digital nomads, an transport, and rural development. increase of 42 percent from 2020 and 112 percent from the pre-pandemic year.16 Anecdotal evidence • COVID-19 also exacerbated already difficult inter- from Barbados suggests long-stay tourists spend as island transport. Expanding connectivity between much as 12 times as regular tourists.17 Attracting the Caribbean and new source markets and longer stays, such as digital nomads, requires special destinations is essential to reduce dependency from considerations including: relocation services; special traditional ones. visa options and taxation policies; and high-quality • Given the cross-cutting nature of both the tourism of life (at a lower relative cost of living).18 industry and digital transformation initiatives, actions 4. Expanding the high-value wellness market. SIDS to address digital transformation constraints should have rich natural resources and a varied number begin with strong leadership and coordination. of medicinal and aromatic plants that have uses • Capturing new market segments like yachting and in wellness and beauty care, excellent climate, and diving requires greater consideration of marine good existing assets (beaches, thermal/mineral conservation, expanded no-take zones and protected springs).19 However, investment is needed to attract areas, and enhanced management of marine resources. this market segment and compete with destinations • Increasing quality of services and digitalization such as Costa Rica, Mexico and Thailand.20 requires capacity upgrading to meet international 5. Leveraging increased interest in eco and adventure standards in safety, service-delivery, environmental tourism.21 The adventure tourism segment is valued as management, and governance. 14 World Bank Group (2022). Tourism Watch – Quarterly Report Issue 1. March 2022. 15 Circular economy business models are those which aim to create value through restoration, regeneration, and re-use of raw materials such as energy, food, water, and waste. 16 MBO Partners, Inc. (2021). The Digital Nomad Search Continues. Available at https://www.mbopartners.com/state-of-independence/2021-digital-nomads-research-brief/ 17 World Bank Group (2021). The Future of Travel & Tourism Webinar. October 29th, 2021. 18 MBO Partners, Inc. (2018). Digital Nomadism: A Rising Trend. Retrieved from http://www.mbopartners.com/state-of-independence/research-trends-digital-nomads/ 19 LCT Consulting and Associates LTD (2013). Caribbean Spa and Wellness Strategy 2014-2018. Available at https://www.globalwellnesssummit.com/wp-content/uploads Industry-Research/Global/2013-Caribbean-Spa-and-Wellness-Strategy.pdf 20 Travel Agents Selling the Caribbean (2020). Wellness Tourism: Balancing Safety Protocols and Guest Expectations Amid the Impact of COVID-19 Webinar. Retrieved from https://sflcn.com/wellness-tourism-balancing-safety-protocols-and-guest-expectations-amid-the-impact-of-covid-19/ 21 See glossary for definitions of ecotourism and adventure tourism. Page 12 There will be increased competition for reduced not just on volume but on local value creation, inclusive numbers of higher-spending tourists. Critical to the job creation and on the environment. This will help design of projects and development assistance to support policy makers make more informed decisions about the this transition will be improved research and data, and short-, medium-, and longer-term costs and benefits of better systems for monitoring the impact of policy shifts, sustainability strategies, policies, and investments. Figure 2. Mapping Longer-term Sustainability Pathways Challenges Trends in Market Strategies Tools & facing tourism Consumer for Sustainable Resources in SIDS Demand Tourism in SIDS Impact of COVID-19 and Interest in nature-based Shifting towards Blue crisis of demand activities sustainable resorts Tourism Lack of market and Sustainable and local Enhancing local supply Resource product diversification experiences chain linkages Portal Concerns about health Attracting digital nomads Weak local supply chains and safety and long-term stays Low capacity and weak Longer stays and Expanding the high-value coordination higher spending wellness market Poor Information, tech. Digital booking and Leveraging eco and and coms. infrastructure customer engagement adventure tourism Over-reliance on Building inter-regional international operators yachting and cruise lines Capturing higher value Poor connectivity from cruise passengers Vulnerability to climate change & biodiversity loss Gender inequality and Gender-based violence Source: The World Bank As SIDS move beyond medium term recovery to define ‘build back bluer’ tourism sectors, close monitoring will long-term strategies, SIDS tourism stakeholders, be needed of those policies that contribute to improved especially policy makers, will need enabling tools, community outcomes and those that fail. Expanding resources, and support along the process. The note economic monitoring beyond visitor spending and highlights some tools and resources from the Blue GDP inputs to incorporate the full range of economic Tourism Resource Portal that can help guide a transition and environmental costs of tourism development will to these more sustainable trajectories. be critical. This guidance note and accompanying Blue Tourism Resource Portal provide a summary of the Access to information cannot alone solve these impact of COVID-19 on SIDS, along with strategies and complex challenges, but it is a foundation for capacity resources for recovery. building that practitioners can use to fast-track tailored solutions. With a combination of national expertise, “Investing in sustainable tourism in the SIDS is the only stakeholder consultation, and financial and technical path to ensure that the sector continues to advance socio- support pragmatic and locally appropriate solutions economic welfare while protecting their fragile ecosystems.”22 and operations can be designed. As efforts are made to UN World Tourism Organization 22 UNWTO (2019). Tourism in Small Island Developing States (SIDS): Building a more sustainable future for the people of islands. Available at https://webunwto.s3-eu- west-1.amazonaws.com/2019-07/unwtotourisminsidsa4wtables.pdf (Accessed: 23 April 2021): pp2. Page 13 Introduction to Blue Tourism This guidance note contains data, tools, and recovery strategies relevant to small islands and small tourism-dependent coastal states. Page 14 The objective of this guidance note is to assess the each year just to visit coral reefs, generating $36 billion impact of COVID-19 on Small Island Developing a year in revenue and creating 6.5 million jobs.23 Not States (SIDS) and Small Tourism-dependent Coastal all tourism activities that occur in the coastal zone are States (referred to in this report collectively as SIDS), to sustainable. Marine and Coastal Tourism activities are provide a sequenced series of response strategies, and to typically defined as all the activities that take place in highlight some of the other tools currently available on coastal and marine environments (cruises, recreational Blue Tourism and COVID-19 responses. The guidance boating, fishing, diving, snorkeling, swimming, and note and accompanying Blue Tourism Resource Portal surfing). If these activities are sustainable (not damaging (in development), are designed to provide knowledge to the environment and local cultures) and economically and information to assist SIDS stakeholders to transition viable, they can be considered Blue Tourism activities, towards a sustainable and resilient recovery of their contributing to a blue economy.24 tourism sectors. Blue Tourism is a sustainable alternative of the Oceans are critical to the fight against climate change. traditional tourism practices in coastal and maritime They help regulate global temperatures and the areas. It is typically a low impact activity focusing on the global carbon cycle by absorbing nearly one third of promotion of local communities and the conservation atmospheric carbon dioxide. Coastal ecosystems such of natural resources,25 and is a sub-component of as mangroves, seagrasses, and reef systems, not only sustainable tourism. This contrasts with large-scale protect the coastline, but they have a great capacity to tourism characterized by beach resort tourism and store carbon in their sediments over long time scales. international cruise tourism. It is not the activity that Vegetated coastal habitats represent one of the most defines what a Blue Tourism activity is, but how the efficient carbon sinks naturally available and are activity is organized and operated, and its impacts. The therefore an important tool for climate mitigation and objective of a Blue Tourism transition is to expand the adaptation, in addition to being crucial habitats hosting overlap between the Blue Economy and Marine and rich biodiversity and providing key ecosystem services. Coastal Tourism, thereby moving towards and growing Oceans and coastal zones are also critical to tourism. Blue Tourism; ideally, the two circles completely overlap. According to the UNEP almost 70 million trips are taken See Figure 3 below. Figure 3. Blue Tourism Transition Transition to a Blue Tourism Economy Blue Tourism Blue Tourism Blue Economy Marine and Coastal Tourism Source: OECS Blue Economy Analytics, 2020, Internal report. R. Brunbaugh (2017). Protecting million dollar reefs is key to sustaining global tourism. UNEP. Retrieved from https://www.unep.org/news-and-stories/story/protecting-million- 23 dollar-reefs-key-sustaining-global-tourism Northrop, E. (2022). Opportunities for Transforming Coastal and Marine Tourism: towards sustainability, regeneration and resilience, High-Level Panel for a Sustainable Ocean 24 Economy, Washington, D.C. https://oceanpanel.org/wp-content/uploads/2022/06/22_REP_HLP-Tourism_revised-names.pdf World Bank Group (2017). op. cit. 25 Page 15 The Impact of COVID-19 on SIDS and Small Tourism-dependent Coastal States Tourism income is critical to the economic viability of many SIDS. Ghana Page 16 In 2019, SIDS earned $55 billion in exports from more than 30 percent of total exports in the majority of tourism (four percent of the world total) and hosted 44 the 38 SIDS, with four countries earning more than 80 million international tourist arrivals (3 percent of total percent of exports from tourism (see Figure 4 below).27 international arrivals globally).26 Tourism accounted for Figure 4. SIDS International Tourism Revenues, Share of Total Exports (2019)28 Saint Lucia 90 Palau 88 Bahamas 86 Maldives 84 Barbados 72 Antigua & Barbuda 69 Cabo Verde 67 São Tomé and Príncipe 65 Vanuatu 63 Samoa 58 Jamaica 54 Fiji 52 Comoros 51 Tonga 47 Belize 46 Small Island Developing State Seychelles 38 Haiti 38 Dominican Rep. 36 St Vincent & Gren. 35 Mauritius 34 Dominica 31 St Kitts & Nevis 30 Grenada 30 Timor-Leste 29 Marshall Islands 24 Cuba 22 Kiribati 18 Bahrain 13 Solomon Islands 12 Trinidad & Tobago 5 Guinnea-Bissau 5 Suriname 3 Singapore 3 Guyana 2 Papua New Guinea 0.03 0 10 20 30 40 50 60 70 80 90 100 2019 international tourism revenue, share of total exports Note: No data available for Micronesia FSM, Tuvalu or Nauru Source: UNWTO 26 U$ indicates United States Dollar throughout the report. 27 UNWTO (2020a). Small island destinations in critical need of urgent support as tourism plunges, UNWTO warns. 29 June 2020. Available at https://www.unwto.org/news/small- island-destinations-in-critical-need-of-urgent-support-as-tourism-plunges (Accessed: 21 April 2021). 28 UNWTO (2020b). Tourism in SIDS: the challenge of sustaining livelihoods in times of COVID-19, UNWTO Briefing note – Tourism and COVID-19. Issue 2, June 2020. Available at: https://www.e-unwto.org/doi/epdf/10.18111/9789284421916 (Accessed: 21 April 2021). Page 17 Tourism arrivals are unequally spread across SIDS. SIDS has been at the frontline of the COVID-19 crisis due to in the Atlantic, Indian Ocean and South China Sea group a series of major outbreaks on board.36 In 2020, cruise account for 53 percent of the 44 million international ship arrivals were at 25 percent of their 2019 level. tourists in 2019, while the Caribbean hosted 43 percent, The reduction in arrivals and spending has had cascading and the Pacific group just 4 percent. Three destinations series of economic impacts across SIDS. Reduced represent about 60 percent of total SIDS arrivals: receipts led to a sharp decline in foreign exchange and Singapore (34 percent), Dominican Republic (15 tax revenues, delayed payments and credit problems, percent), and Cuba (11 percent).29 company closures of hotels and airlines, job losses. In COVID-19 compounded existing challenges in SIDS. the Caribbean for example, the Caribbean Hotel and The pandemic created a perfect storm for SIDS, adding Tourism Association (CHTA) reported that hotels were to pre-existing constraints such as high external debt owed large sums by outbound tour operators, with some and increasing impacts of climate change and natural facing closure. The average amounts owed to hotels as disasters threatening lives and abilities to achieve of June 2020 was $219,000 per hotel, with many owed the Sustainable Development Goals. In 2020, SIDS more than a million by large, outbound operators.37 experienced an average GDP decline of 7.41 percent, In turn this has reduced public spending capacity and compared to the 5 percent average GDP contraction of the ability of governments to deploy measures necessary the world total,30 and in 2021 their recovery represented to support livelihoods through the crisis. In Fiji, the a 3.24 percent GDP increase with respect to the previous country’s national airline grounded 95 percent of year, in comparison with the 5.56 percent global average. flights for several months amid travel restrictions and Countries like Maldives and Barbados were especially border closures around the world. The Fiji Hotel and heavily impacted, experiencing negative 2020 GDP Tourism Association (FHTA) reported a staggering 279 growth rates of 33.5 and 18.98, respectively.31 hotels and resorts had closed by April 2020 (out of approximately 400) due to the outbreak, causing more Travel restrictions, their intensity and timeline have had than 25,000 people to lose their jobs. By July 2020, the highest impact on recovery rates. According to the 110,000 tourism employed staff in Fiji (directly) had UNWTO, between January and May 2020, all global been put on leave without pay, terminated (with little destinations imposed travel restrictions, and 45 percent or no benefits), or made redundant (with payouts per totally or partially closed their borders for tourists.32 contractual requirements). By February 2021, 32 percent of all destinations worldwide (69 in total) were completely closed to The United Nations briefing paper on COVID-19 international tourism, and just over half of these funding for Small Island Developing States (2020) (38 destinations) had been closed for at least 40 weeks. highlights economic challenges as a perfect storm for As of May 2022, 89 percent of SIDS still had partial SIDS, including challenges of COVID-19, external debt, restrictions to international air arrivals in place, climate change, collapse of tourism and climate disasters 4 percent of them had total restrictions and just 7 percent threatening lives and abilities to achieve the Sustainable had no air arrival restrictions.33 Development Goals. The recently released report from the High-Level Panel on a Sustainable Ocean Economy The impact on global travel was devastating, particularly (2022) provides examples of sustainable, regenerative for SIDS. Global international tourist arrivals declined and resilient coastal and marine tourism along with 73 percent in 2020 with arrivals in 2021 being future trends and forecasts.38 72 percent below pre-pandemic levels according to UNWTO estimates.34 SIDS experienced a slightly higher Impact by Region than average decline in arrivals. Between April 2020 and March 2021, the drop in international airline seat Latin America and the Caribbean SIDS were among the capacity landing (as a proxy for arrivals) in SIDS was 77 most heavily affected by the pandemic. Latin America percent compared to the same period in 2019-2020.35 and Caribbean (LCR) SIDS experienced an average The cruise sector, on which many small islands depend, annual GDP decrease of 12.98 percent in 2020. LCR 29 UNWTO (2020b). op. cit. 30 World Bank Group. World Development Indicators. https://datatopics.worldbank.org/world-development-indicators/ Data updated on April 27th, 2022. 31 IMF. World Economic Outlook https://www.imf.org/en/Publications/WEO. Data updated in April 2022. For some countries growth rates are IMF estimations. 32 UNWTO (2020c). 100 percent of global destinations now have COVID-19 travel restrictions. UNWTO reports. 28 April 2020. Available at: https://www.unwto.org/news/ covid-19-travel-restrictions (Accessed: 21 April 2020). 33 UNWTO/IATA Destination Tracker. https://www.unwto.org/tourism-data/unwto-iata-destination-tracker (Accessed May 5, 2022). 34 UNWTO (2022). Tourism grows 4% in 2021 but remains far below pre-pandemic levels. Available at: https://www.unwto.org/news/tourism-grows-4-in-2021-but-remains- far-below-pre-pandemic-levels (Accessed March 31 2022). 35 World Bank Aviation Dashboard. 36 Hudson, S. (2020). COVID-19 and travel: Impacts, responses and outcomes. Goodfellow Publishers Ltd; Nevett, J. (2020) Coronavirus: Anger grows for stranded crew on forgotten cruises. BBC, 19 May 2020. Available at: https://www.bbc.com/news/world-us-canada-52722765 (Accessed: 23 April 2021). and see Spenceley, A (2020). COVID 19 and sustainable tourism: Information resources and links. Available at: https://annaspenceley.wordpress.com/2020/04/02/covid-19-and-sustainable-tourism/, Cruise ships section. 37 TravelMole (2020a). Caribbean hotels demand TUI pays outstanding bills. 9 June 2020. Available at: https://www.travelmole.com/news/caribbean-hotels-demand-tui-pays- outstanding-bills/ (Accessed: 22 April 2021). 38 Northrop, E. (2022). Opportunities for Transforming Coastal and Marine Tourism: towards sustainability, regeneration and resilience, High-Level Panel for a Sustainable Ocean Economy, Washington, D.C. https://oceanpanel.org/wp-content/uploads/2022/06/22_REP_HLP-Tourism_revised-names.pdf Page 18 was also the region with the largest differences in GDP just 1.25 percent decline with respect to 2020 numbers. decreases ranging from -26.78 percent in Turks and Finally, Sub-Saharan Africa SIDS performance resulted Caicos Islands to -3.25 percent in Saint Vincent and in an average GDP decrease of 6.65 percent in 2020. the Grenadines. However, LCR seemed to bounce back In 2021, recovery in Sub-Saharan Africa SIDS was the faster. IMF estimations attribute to these SIDS a higher- highest (average of GDP growth of 4.43 percent) and than-average GDP upturn of 3.85 percent in 2021. most consistent across countries of all three regions In contrast, the East Asia Pacific region still suffered included in this comparison.39 Figure 5. SIDS 2020 and 2021 Range of GDP Performance by Region 20% 15% 10% GDP Annual Growth (%) 5% 0% -5% -10% -15% -20% -25% -30% East Asia & Latin America & Sub-Saharan Pacific Caribbean Region Africa 2020 Growth 2021 Growth Note: World Bank Calculations: sample of 17 (2020) and 14 (2021) EAP SIDS; 19 (2020) and 16 (2021) LCR SIDS; and 6 (2020 and 2021) SSA SIDS Source: World Bank World Development Indicators; IMF World Economic Outlook (Accessed April 2022) Regional differences in performance are likely closely In the US Virgin Islands for example, which had very related to travel restrictions, proximity to source low restrictions throughout the pandemic, the charter markets, and size of the domestic tourism market. As yacht business in 2021 is expected to generate roughly can be observed in Figure 6, the progressive easing of double the $45 million made in the local economy in travel restrictions to international arrivals starting from 2019. Comparatively, the British Virgin Islands, which the summer of 2020 correlates with an increase in airline was mostly closed to international tourists, had strict seat capacity, a proxy for arrivals. On average, East Asia COVID-19 safety protocols and very few yacht arrivals.40 Pacific (EAP) SIDS had the highest restrictions compared Hotel occupancy rates in the US Virgin Islands in middle to LCR and SSA SIDS. In October 2020, when Latin 2021 were almost triple that of the rest of the region, America and the Caribbean (LCR) and Sub Saharan and seven times that of the Bahamas.41 Africa (SSA) SIDS began easing travel restrictions and regaining seat capacity, EAP SIDS continued to have higher restrictions and lower seat capacity. 39 International Monetary Fund (2022). World Economic Outlook update April 2022. Notes: some numbers included in the averages are IMF estimates; Guyana has been excluded of the analysis since in 2020 had a GDP annual growth rate of 43.38 due to the start of oil production in the country. 40 Palmer, E. (2021). The Caribbean conundrum: United by tourists, divided by COVID. The New York Times, 25 May 2021, Available at: https://www.nytimes. com/2021/05/25/travel/caribbean-vacation-coronavirus.html (Accessed: 2 June 2021). 41 Palmer, E. (2021). op. cit. Page 19 Figure 6. International Travel Restrictions Index & International Seats Capacity Index for SIDS by Region42 50 140 45 International Seat Capacity Index 120 40 Travel Restrictions Index (Most Restrictive = 100) 35 100 (2019 = 100) 30 80 25 60 20 15 40 10 20 5 0 0 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 AFR Travel Res EAP Travel Res LCR Travel Res AFR Seat Cap EAP Seat Cap LCR Seat Cap Source: World Bank Analysis based on WB Aviation Dashboard and Oxford COVID-19 Government Response Tracker. Note: Sample of 55 SIDS: 6 (AFR), 21 (EAP), 28 (LCR). Travel restrictions are also negatively correlated with GDP growth (annual percentage change). That is, the 2021 economic upturn in a regional SIDS analysis. In higher the travel restrictions in 2021, the lower the GDP an analysis of 23 SIDS from four regions, research finds growth. At a regional level, EAP SIDS had more travel a strong negative correlation of 0.48 between the 2021 restriction in 2021 than LCR SIDS and correlating lower Travel Restrictions Index and the estimates for 2021 GDP growth. Figure 7. Relationship between 2021 Economic Performance and Travel Restrictions in Selected SIDS, by Region 20 ABW 15 2021 GDP Growth (Annual %) DOM 10 BLZ SYC SGP CPV BHS 5 DMA JAM MUS BHR PNG TLS KIR PRI BRB 0 SLB VUT TTO HTI TON FJI SUR -5 20 30 40 50 60 70 80 90 100 2021 Travel Restrictions Index, 0 - 100 (More Restrictive) East Asia & Pacific Latin America & Caribbean Middle East & North Africa Sub-Saharan Africa Source: Oxford COVID-10 Government Response Tracker, IMF World Economic Outlook. Note: in some cases IMF growth rates are based on estimations. See Annex 1 for country acronyms for this figure. 42 The Travel Restrictions Index is calculated on a scale of 0 (least restrictive) to 100 (most restrictive), leveraging data from the Oxford COVID-19 Government Response Tracker. For a given day, an individual country is assigned a value of 0 if it imposes no international travel restrictions, 25 if it screens international arrivals, 50 if it imposes quarantine requirements on at least some international travelers, 75 if it bans arrivals from select geographies, and 100 if it imposes a total border closure. Monthly averages are calculated for each country based on the days for which data were available for that country. Global and regional averages are simple averages across countries with available data for the month. Page 20 Not surprisingly, WB research also found a strong and appears for tourism’s contribution to employment, clear negative correlation between economic dependency with a negative correlation of 0.55 to 2020 economic on tourism in SIDS (i.e., tourism contribution to GPD) performance. Other factors seem to magnify the impact and 2020 economic performance (0.67). That is, the of COVID-19 in SIDS and other countries, such as pre- higher the economic dependence on tourism the lower pandemic external debt levels (as a percentage of Gross was 2020 economic performance.43 A similar trend National Income). Figure 8. Relationship between 2020 Economic Performance and Tourism Dependence in Selected SIDS, by Region 5 STP COM TON 0 PNG HTI KIR PRI SLB VCT -5 SGP BHR DOM 2020 GDP Growth (Annual %) TTO CYM VUT -10 CUB JAM SYC BLZ KNA FIJ BHS -15 SUR MUS GRD BRB DMA -20 ATG LCA -25 -30 MDV -35 -40 0 10 20 30 40 50 60 2018 Tourism Contribution to GDP East Asia & Pacific Latin America & Caribbean Middle East & North Africa Sub-Saharan Africa South Asia Source: World Bank World Development Indicators, World Travel & Tourism Council Note: See Annex 1 for country acronyms for this figure. 43 This is a general statement but there are outliers and variations over time and across sources. GDP dependence on tourism is also a reflection of the size and diversity of the economy, and economic performance can also be influenced by other variables such as infections rates or income level. Page 21 Box 1. Pacific SIDS Focus Countries studied: Fiji, Kiribati, Marshall Islands, air arrivals losses in 2020 represented a decrease close to Micronesia, Nauru, Palau, Papua New Guinea, Samoa, 80 percent with respect to the previous year. Solomon Islands, Tonga, Tuvalu, and Vanuatu. The COVID-19 pandemic changed tourism demand for In 2020, 12 East Asia Pacific (EAP) SIDS experienced EAP SIDS in absolute terms, slightly reducing reliance a total decline in international air passenger arrivals of on key markets of Australia and New Zealand. Of 76 percent with respect to the previous year. In absolute particular note is the increase in proportion of arrivals terms, Fiji, one of the highest tourism-reliant economies from Singapore well as the peak fall in Japan visitors. It is in the region, lost over 700,000 international passengers too soon to tell if these are temporary or long-term shifts. in twelve months. For the Federated States of Micronesia, Figure 9. Arrivals from EAP to 12 Pacific Figure 10. Arrivals from EAP to 12 Pacific Selected SIDS, Apr 2019-Mar 2020 Selected SIDS, Apr 2020-Mar 2021 OTHERS 4% OTHERS 2% CHN 1% MYS 1% NCL 1% HKG 1% KOR 2% IDN 1% SGP 2% AUS 48% CHN 1% AUS 41% GUM 3% GUM 2% HKG 3% PHL 5% PHL 3% SGP 13% JPN 4% NZL 33% NZL 29% Source: OAG Traffic Analyzer Source: OAG Traffic Analyzer Note: See Annex 1 for country acronyms for this figure. Note: See Annex 1 for country acronyms for this figure. Recovery Trajectories 75 percent of businesses surveyed expect full recovery by mid-2023, although more than half of these are unsure Recovery from the pandemic has taken much longer than originally anticipated due to the emergence of the they will be able to stay open for business until then.45 Delta and then Omicron variants. Most tourism experts A key challenge as the sector looks to re-open will be now expect international tourism not to return to pre- how to ensure critical interlinked parts of the tourism COVID levels until 2023/24.44 A recent survey by the supply chain are all functional from baggage handling to Caribbean Hotel and Tourism Association showed that busses and ground operators.46 44 UNWTO (2020d) UNWTO panel of experts October edition: return to 2019 levels expected by 2023. Available at: https://www.unwto.org/node/11557 (Accessed: 10 November 2020). 45 Palmer, E. (2021). op. cit. 46 OECD (2021a). Managing tourism development for sustainable and inclusive recovery. OECD Tourism Papers 2021/01, OECD Publishing: Paris. Available at: http://dx.doi.org/10.1787/b062f603-en. (Accessed: 22 February 2021). Page 22 Figure 11. International Tourist Arrivals in 2019, 2020 and 2021 180 160 International Tourist Arrivals (M) 140 120 100 80 60 40 20 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 Source: UNWTO Tourism Data Dashboard Vaccination rates have been a critical factor in economic vaccinated by late 2021, as reported by the Ministry of recovery. In 2021 vaccinations were significantly correlated Tourism. The government also lifted travel restrictions with 2021 recovery, with a correlation coefficient of 0.41 for incoming visitors and offered free medical insurance (see Figure 12). That is, the higher the vaccination rate for tourists staying at certain hotels, along with a robust of the population, the better economic performance in testing policy. These measures have allowed the country terms of GDP annual growth. In Dominican Republic, to quickly rebound from the pandemic and remain one of nearly 100 percent of tourism sector workers were the Caribbean’s most attractive destination. Figure 12. Relationship between Vaccination Rates and 2021 Economic Performance in Selected SIDS, by Region 40% MDV 30% GDP Annual Growth (%) 20% GUY ABW TUV DOM 10% GNB SYC LCA BLZ JAM GRD BHS CPV SGP KIR STP DMA ATG MUS PNG COM TLS BRB BHR 0% SLB VUT NRU VCT TTO TON MHL SUR KNA FJI HTI WSM -10% FSM PLW -20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2021 Year-End Vaccination Rate East Asia & Pacific Latin America & Caribbean Middle East & North Africa Sub-Saharan Africa South Asia Source: World Bank Analysis based on: Our World in Data, IMF World Economic Outlook Note: in some cases IMF growth rates are based on estimations. Note: See Annex 1 for country acronyms for this figure. Page 23 Impact on the Environment Many observers are concerned that the pandemic will roll back progress made towards the Sustainable In addition to economic fragility, SIDS also have fragile Development Goals (See Figure 13).48 In areas such environments. SIDs are particularly vulnerable to climate as pollution and particularly single-use plastic, for change, sea level rise and natural hazards, environmental example, there have been significant negative impacts challenges in SIDS include threats of overfishing and of the pandemic. On a positive note, the pandemic has potential collapse of inshore marine ecosystems, invasive created a brief respite for some wildlife. For example, alien species, breakdown of sand and sediment budgets; there was an increase in the number of nesting turtles on degradation and scarcity of freshwater resources; loss beaches in India and Thailand.49 Indo-Pacific humpback of ecosystem services from mangroves and coral reefs; dolphins returned to Hong Kong waters without usual limited land resources; and detritus of ocean plastic from ferry traffic.50 Humpback whales were heard singing without cruise ship interference in Alaska,51 and dolphins other nations.47 were observed in a Sardinian port.52 Figure 13. Potential Impacts of COVID-19 in Destinations and the SDGs53 Jobs accommodation and Drop in oil prices makes transision food services make 20% of all to renewable and sustainable vulnerable positions. They are energy investments less subject to furlough, layoffs. attractive Women are a major % of tourism labour force Increase of plastic pollution and use of single use plastic COVID-19 Pandemic Sanitization and hygiene standards will increase the use of water in tourism destinations Reduced capacity for climate Waste management investment. Potential increase of challenges including health and local Transportation emissions due to safety measures; recycling reduced; consumer demands. food waste may increase. Major international travel arrivals decrease, Trust and health considerations will drive forcing focus on domestic tourism, nature- consumer demands to meet social distancing based tourism and low carbon tourism models. an hygiene norms. 47 UNEP (2014). Emerging issues for Small Island Developing States. Results of the UNEP Foresight Process. United Nations Environment Programme (UNEP). Nairobi, Kenya. Available at https://sustainabledevelopment.un.org/content/documents/2173emerging%20issues%20of%20sids.pdf (Accessed: 7 July 2021). 48 Spenceley, A. (2021). The future of nature-based tourism: Impacts of COVID-19 and paths to sustainability. Luc Hoffmann Institute, Available at https://luchoffmanninstitute. org/future-nature-based-tourism-report/ 49 Reuters (2020). Coronavirus lockdown boosts numbers of Thailand’s rare sea turtles. The Guardian. 20 April 2020. Retrieved from https://www.theguardian.com/ environment/2020/apr/20/coronavirus-lockdown-boosts-numbers-of-thailands-rare-sea-turtles (Accessed: 19 October 2020). 50 Davidson, H. (2020). Dolphin numbers up in Hong Kong after Covid crisis halts ferries. The Guardian. 15 September 2020. Retrieved from https://www.theguardian.com/ world/2020/sep/15/dolphins-return-hong-kong-covid-crisis-halts-ferries (Accessed: 14 October 2020) 51 Pennington, E. (2020). Humpback whales seize chance to sing Alaska’s cruise-free Covid summer. The Guardian. 2 October 2020. Retrieved from https://www.theguardian. com/environment/2020/oct/02/humpback-whales-sing-alaska-covid-summer-researchers (Accessed: 14 October 2020). 52 Kretchmer, H. (2020). These locked-down cities are being reclaimed by animals. World Economic Forum. 17 April 2020. Retrieved from https://www.weforum.org/ agenda/2020/04/covid-19-cities-lockdown-animals-goats-boar-monkeys-zoo/ (Accessed: 1 October 2020). 53 Spenceley, A. (2020). op. cit. Page 24 Box 2. Regional Examples of Environmental Impact of COVID-19 • France, Greece, Italy, and some southern Mediterranean • In Indonesia, Seychelles, Indian Ocean, Fiji, states have reported increased plastic spillage in the Philippines and Hawaii the decline in tourism forms of masks and other anti-COVID-19 protection forced some communities to turn to unsustainable equipment (plastic gloves, etc.) in maritime basins, fishing as a food source, putting pressure on coastal fishing lanes, and coastal areas.54 fisheries and reefs.56 57 • In the Philippines reefs have been found covered with single-use face masks close to Manila, with masks breaking down and being consumed by wildlife.55 Furthermore, the pandemic has dramatically impacted Our Word in Data shows that Mauritius, Reunion and the ability of governments to manage and fund Trinidad and Tobago experienced the largest decline of the conservation of parks and outdoor spaces. The visitor numbers to parks and outdoor spaces of selected COVID-19 pandemic put a spotlight on the reliance of small island states (see Figure 14). many biodiversity hotspots, parks, and marine protected Oceans are critical to the fight against climate change. areas on tourism revenues. According to the UNEP Oceans and coastal zones play a critical role in almost 70 million trips are taken each year just to visit increasing resilience to climate change (through coral coral reefs, generating $36 billion a year in revenue and reefs, seagrass and mangroves) and they help regulate creating 6.5 million jobs.58 The consequences of lower global temperatures (by absorbing nearly one third of conservation budgets may include less funding for law atmospheric carbon dioxide). Vegetated coastal habitats enforcement and monitoring, leading to increases in represent one of the most efficient carbon sinks naturally wildlife crime and illegal natural resource extraction e.g., available and are therefore an important tool for climate logging, fishing. Having fewer tourists and operators mitigation and adaptation, in addition to being crucial present in protected areas also means fewer eyes that habitats hosting rich biodiversity and providing key could see and report illegal activities.59 In the Galapagos ecosystem services. Typically, these coastal ecosystems Islands, for example, a study projected that a six-month belong to governments who also bear the costs for entry restriction for pandemic reasons would lead to the their management and conservation as a public goods. loss of 53 percent of total yearly income, or nearly US$10 International development partners, NGOS and private million.60 In parts of East Africa, wildlife poaching, investors have begun the development and use of new illegal hunting and fishing, logging and bush burning financing instruments to help protect environmental has increased due to lack of tourism revenue which resources and provide a more sustainable source of directly impacts funding for park rangers and security.61 income but more progress is needed. (Box 3). 54 Carr, S. (2020) The COVID-19 pandemic, Part 2: Perspectives on the future of coastal and marine tourism and its implications for coastal and marine ecosystems. The Skimmer. 27 July 2020. Retrieved from https://meam.openchannels.org/news/skimmer-marine-ecosystems-and-management/covid-19-pandemic-part-2-perspectives- future-coastal56322369 (Accessed: 22 April 2021). 55 BBC (2020a). Coronavirus: Divers find Philippine reef covered with single-use face masks. 9 March 2020. Available at: https://www.bbc.com/news/av/world-asia-56322369 (Accessed: 22 April 2021). 56 Techera, E. (2019). Achieving blue economy goals: The need for improved legal frameworks across the Indian Ocean. Seychelles Research Journal. August 2019. Available at: https://seychellesresearchjournalcom.files.wordpress.com/2019/08/achieving-blue-economy-goals-erika-techera.pdf (Accessed: 3 June 2021). 57 Northrop, E., et al. (2020). “A Sustainable and Equitable Blue Recovery to the COVID-19 Crisis”. Report. Washington, DC: World Resources Institute. Available at http://www.oceanpanel.org/bluerecovery 58 R. Brunbaugh, (2017). Protecting million dollar reefs is key to sustaining global tourism, UNEP. https://www.unep.org/news-and-stories/story/protecting-million-dollar- reefs-key-sustaining-global-tourism 59 Spenceley, A. (2021). op. cit. 60 Díaz-Sánchez, Juan Pablo, and Moisés Obaco (2020). “The Effects of Coronavirus (COVID-19) on Expected Tourism Revenues for Natural Preservation. The Case of the Galapagos Islands.” Journal of Policy Research in Tourism, Leisure and Events: 1-5. 61 Roberts, Sophy (2020). “Africa’s Year of Zero: A Special Report on the Future of Wildlife Tourism.” Financial Times, October 28, 2020. Available at https://www.ft.com/ content/6a4f6c76-8a00-46ef-a645-23a5eda58825 Page 25 Figure 14. Changes in Visitation to Parks and Outdoor Spaces during COVID-19 in Selected SIDS62 400% Antigua & Barbuda 300% Reunion Belize 200% Barbados Papua New Guinea 100% Fiji Philippines Trinidad and Tobago 0% Mauritius -100% -200% -300% Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Source: Our World in Data Box 3. Examples of Financial and Risk Management Instruments as an Alternative to Tourism Revenue Blue bonds: Fixed-income financial instruments where and so on). There are limited examples, but the field capital is invested upfront in initiatives that deliver is growing and can build on the experience gained in measurable outcomes, such as carbon and biodiversity terrestrial carbon sequestration. credits. The need for positive cash flows and verified Parametric insurance products: The Caribbean Oceans outcomes is paramount because investors get repaid only and Aquaculture Sustainability Facility (COAST), the for proven results. This is perhaps the most common world’s first parametric insurance, was developed by instrument currently used and exemplified in the Seychelles. the World Bank for the fisheries sector to be a catalyst Debt swaps: Debt-for-nature swaps leverage funds for use to promote resilience and sustainable management of in local conservation efforts and are based on the model the marine environment. It promotes formalization of of debt-for-equity swaps; the proceeds are invested in the sector by giving fishers incentives to register their conservation activities in the indebted country. It can also operation. It aims ultimately to reduce the natural involve debt forgiveness. Blue carbon credits are generated disaster risk that climate change poses to food security through a wide range of activities that sequester carbon or and foster policy reforms that promote climate-smart demonstrate biodiversity conservation metrics. fisheries practices and coastal resilience. Conservation trusts/Endowment funds (hybrid model): Payment for Ecosystem Services: Financial compensation these can be trusts or grant-making entities that provide derived from polluting activities or any related finance for operations of conservation areas or specific exploitation and use of natural or marine areas. It is conservation project activities. They are capitalized by possible to implement a payment for ecosystem services governments, foundations, and the private sector. Often in which polluting activities fund the treatment of waste there is no expectation of a return and therefore the produced by these activities and give a tax preference funds can support higher-risk projects that have less to non-polluting local activities. In Martinique, for certain outcomes. example, the state draws royalties from fishing and Carbon Credits: Carbon credits are generated through hunting rights, the exploitation of marine cultures, a wide range of activities that sequester carbon; blue products of extractions, rights of way for operators of carbon refers to sequestration in marine and coastal telecommunication networks. The income amounted to ecosystems (mangroves, tidal wetlands, seagrasses, almost €300 million in 2010.63 62 Our World In Data (2022). This data shows how the number of visitors to parks and outdoor spaces has changed relative to the period before the pandemic. This includes places like local parks, national parks, public beaches, marinas, dog parks, plazas, public gardens. Retrieved from: https://ourworldindata.org/grapher/change-visitors- parks-covid?tab=chart&country=ABW~ATG~BHS~MUS~TTO~FJI~HTI~BRB~CPV~CIV~DOM~GNB~HND~PNG~PRI~REU~TGO (Accessed: 7 July 2021). 63 Mann, S. and Twining-Ward, L. (2022). Financing: Connecting Ambition with the Means to Achieve Sustainability, Expert Essay, High-Level Panel for Sustainable Ocean Economy. https://oceanpanel.org/perspective/louise-twining-ward-and-shaun-mann-financing-connecting-ambition-with-the-means-to-achieve-a-sustainable-ocean-tourism-model/ Page 26 Recovery Pathways Most recovery pathways identify a sequence of interventions for short-term, medium- and longer-term recovery.64 64 See Annex 2 for detailed examples of different types of interventions. Sierra Leone Page 27 Whereas shorter term interventions focus on health “build back better”.66 This includes working towards and economic support, longer-term approaches provide commitments of the Glasgow Declaration for Climate pathways for public and private innovation and a Action in Tourism of 2021 for net zero emissions by 2050 transition to a more sustainable and resilient recovery. and by improving adaptation strategies.67 It also includes Short term responses were understandably about health improvements in social inclusion and tourism to improve of destination communities and visitors and the survival value capture for women and youth. Increasing funding of tourism businesses. Establishing protocols and and improving management of conservation assets is communicating them clearly in a complex and changing an additional theme for longer term strategies. Finally environment were the primary challenges. Destinations transitioning to more sustainable and circular economy like Singapore and Portugal that were fast and effective in business models is recommended. Not all strategies will the protocols were used as role models for others before be possible or feasible for all destinations. institutional protocols like those of World Travel and There are two important considerations for these Tourism Council (WTTC) were established. Support for strategies: to acknowledge and assess the transition cost tourism businesses varied by destination from grants to tax and be agile in support to the sector. Inevitably there will relief, wage subsidies, training to prevent layoffs.65 As the be transition costs and winners and losers as assets will pandemic evolved from a short to a longer-term situation, need to be repurposed or adapted to meet sustainability these support mechanisms necessarily shifted and data goals and new data and analyses will be needed to collection on industry needs became critical. Business pulse monitor progress. The development of higher quality surveys were implemented in many destinations. infrastructure despite bringing higher expenditures, Medium term responses focused on how to improve may make it harder for local communities to be policies and governance, encourage innovation and owners and managers due to lack of capital. Consumer drive recovery through improved marketing reach. The demand, policy change, and increased corporate social value of crisis preparedness has been evident during commitments will be key drivers along with government the pandemic. Close collaboration between the public aspirations for the sector development. Guidelines to and private sector are essential during this period and promote resilient, sustainable, and inclusive tourism formalized public-private dialogue structures—such are being developed by the OECD to support the G20 as those established in the Gambia and Jamaica—have Tourism Working Group.68 shown their value. Business innovation, particularly in the area of digital payments, digital marketing and online Governments will need to continue to be agile and adjust services has accelerated in importance as a result of the the form and scope of support they provide. Whereas pandemic. New business opportunities have emerged for for a short-term crisis, some direct firm support may be visitor tracking and health services, and even emerging warranted, in the longer term government support may destinations are establishing apps and websites to clarify discourage private investment, degrade productivity, and entry protocols and streamline immigration procedures. hinder the allocation of resources to more productive Finally, the development of new marketing materials uses.69 A recent World Bank report provides some guiding responding to increased consumer interest in nature, principles for interventions by governments to support safety, and hygiene and new demand for local products the recovery of the tourism sector and recommends that and domestic demand. support focus on addressing market failures (see Box 4) Longer-term sustainability strategies generally aim and/or government failures, to avoid creating market to improve environmental outcomes, reduce climate distortions.70 Common market failures in tourism are impacts, and create resilient jobs – otherwise known as explained in the following Box. 65 The World Bank’s Markets, Competition and Technology Global Unit has identified 587 individual policy responses across 119 countries in the tourism sector between January 2020 and October. 66 UNWTO (2020e). One Planet vision for a responsible recovery of the tourism sector. Available at: https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-06/ one-planet-vision-responsible-recovery-of-the-tourism-sector.pdf (Accessed: 5 October 2020). 67 To accelerate climate action in tourism and to secure strong actions and commitment to support the global goals to halve emissions over the next decade and reach Net Zero emissions as soon as possible before 2050. 68 OECD (2021b) Draft: Guidelines for action to promote resilient, sustainable and inclusive tourism: Report on progress to the G20 Tourism Working Group. CFE/ TOU(2021)5, 8 February 2021. 69 World Bank Group (2022). Expecting the Unexpected: Tools and Policy Instruments to Support the Recovery and Resilience of the Tourism Sector, World Bank Group, Washington D.C. 70 Op cit. Page 28 Box 4. Common Market Failures in Tourism Non-Economic Externalities: Tourism often can have Coordination Failures: Tourism destinations ordinarily substantial impacts – both positive and negative – on comprise complex value chains. Often, a tourism firm the environments and/or cultures of host countries will not be viable without the existence of firms in other and communities. For example, some forms of tourism segments, creating a need for coordination between generate pollution, while others can protect and regenerate firms. For example, a hotel may not be viable without an ecosystems and bolster revenues for conservation. airline to serve the destination, yet the airline would not Economic Externalities: Tourism can alternately enhance be viable without a lodging at the destination. Tourism or undermine the productivity of other economic value chains are particularly susceptible to the loss of activities depending on the nature of work of those firms serving segments which exhibit high fixed costs, employed by the sector. If tourism helps workers acquire human capital specific to both the location and the task, new skills that carry over to future jobs, other sectors may experience positive benefits. Tourism jobs which and relatively low levels of competition. do not expose workers to technology may, however, Imperfect Competition: Due to the importance of have minimal productivity spillovers. Additionally, by coordination to tourism value chains, vertical integration generating foreign exchange, tourism can benefit sectors is common in the tourism sector. High fixed costs, that utilize imported goods. increasing returns to scale, and/or network effects may Information Asymmetries: Information asymmetries predispose certain segments to natural monopolies, as are inherent in tourism as tourists are—absent a for instance is the case in online booking platforms trusted information source—generally uncertain of the and airlines. This may result in higher costs and fewer sustainability, quality and safety of local products and services and may accordingly reduce their consumption choices for consumers, thus reducing the competitiveness due to the associated (perceived) risk. Consumption of destinations or segments. At the same time the large may also be suppressed if tourists are not assured of the majority of local businesses may be left behind as too quality and reliability of local products and services. small to fund. Short-Term Responses conservation activities, renovations, pollution clean-up and coral reef conservation efforts (see Table 1). Each In SIDS like in other destinations, short-term responses context is different and there are many variables at to COVID-19 were about controlling the spread of the COVID-19 virus while protecting businesses from play in recovery such as speed of relaxation of travel insolvency and protecting worker’s livelihoods.71 restrictions, communication strategies, vaccination rates But in SIDS these short-term responses were even and infection rates in the main markets so it is difficult more important due to the small and often vulnerable to isolate particular strategies as the most useful in populations, often high economic dependency on this phase. tourism and reliance on air travel and on imported Aruba, Bahamas, Barbados, Bermuda, Dominica, goods. For example, the UNWTO’s highlights the special Grenada, St. Lucia, Turks & Caicos, and the US Virgin need for immediate recovery programs in SIDS given their reduced domestic markets.72 Owing to their low Islands all received the WTTC Safe Travels stamp hospital capacity, hotels in SIDS were frequently used for throughout 2020 and 2021. The Caribbean was one COVID-19 patients and quarantine centers. of the first regions to open to US travelers, while many usual destinations had imposed restrictions (e.g., Europe, Given the high economic dependency on tourism in Canada, Thailand, etc.). The Dominican Republic, most SIDS, there was more reason for governments to for example, attracted 1.7m visitors from January to step in to provide special support for tourism businesses. March 2022, only 8 percent less than in 2019, mainly Governments, like The Gambia, created destination crisis platforms and plans. Others, like Jamaica, due to complete relaxation of travel protocols. On the developed COVID-19 protocols and verification systems other hand, Bahamas, Barbados, and Jamaica received and phased re-openings. In some destinations, tourism between 39 and 50 percent fewer tourists in 2021 than workers that lost their jobs in the hospitality sector for the same period of 2019.73 Figure 15 compares the returned to subsistence fishing and farming, while impact of relaxation of travel restrictions on COVID -19 others like Mauritius workers were paid to engage in death rates. 71 World Bank Group (2021). Rebuilding Tourism Competitiveness: Tourism response, recovery and resilience to the COVID-19 crisis, Washington DC. Available at https://openknowledge.worldbank.org/handle/10986/34348 72 UNWTO (2020f). Briefing note on Tourism in SIDS: the challenge of sustaining livelihoods in times of COVID-19. UNWTO, Madrid. Available at https://www.e-unwto. org/doi/book/10.18111/9789284421916 73 Tourism Analytics (2022). Total Stopover Visitors 2022 Year to date. Retrieved from https://tourismanalytics.com/caribbean.html Page 29 Box 5. Dominican Republic’s Travel Restrictions Policy The Dominican Republic (DR) has been named as softer travel restrictions policy of the country with a pandemic success story.74 While on average the respect to the regional average, which allowed DR to Caribbean suffered a GDP decrease of 9 percent in 2020, increase its international arrivals during the pandemic. with countries such as St. Lucia reaching minus 20.37 Initially, however, this openness is correlated with more growth, the DR economy contracted only 6.72 percent.75 COVID-19 deaths, which suggests restrictions were In 2021, data shows DR had an annual GDP rebound of dropped too soon. This was corrected in early 2021, 12.26 percent, the second highest regional increase after with travel restrictions increasing ahead of the Delta Aruba.76 The main reason for this stronger recovery, variant.77 This example underlines the importance of in addition to good flight connections, proximity to timing and data in the management of pandemic travel the US market, and better healthcare facilities, is a restrictions. See Figure 15 for the data. Figure 15. COVID-19 Deaths and Travel Restrictions Index in the Caribbean and in the Dominican Republic 4000 120 International Travel Restrictions Index 3500 New confirmed COVID-19 deaths 100 3000 80 2500 2000 60 1500 40 1000 20 500 0 0 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 Caribbean COVID-19 deaths (left axis) DR COVID-19 deaths (left axis) Caribbean International Travel Restrictions Index (right axis) DR International Travel Restrictions Index (right axis) Source: Oxford COVID-19 Government Response Tracker, Our World in Data. The World Bank World Development Report of 2022 income groups that adopted different types of fiscal also highlighted the wide variation in the combination policy measures and highlights that the immediate of policy tools that countries have used to fight the response to the pandemic included a number of policy immediate economic effects of the pandemic.78 Figure tools that were either untested in emerging economies or 16 shows the percentage of countries within country altogether unprecedented at this scale. 74 Murphy, H. (2022). Why Is Everyone Going to the Dominican Republic? The New York Times. January 27, 2022. Retrieved from https://www.nytimes.com/2022/01/27/ travel/dominican-republic-tourism-pandemic.html 75 World Bank Group. World Development Indicators. https://datatopics.worldbank.org/world-development-indicators/ Data updated on April 27th, 2022. 76 International Monetary Fund (2022). World Economic Outlook update April 2022. 77 Gonzalez, T (2021). Hoteles de Dominicana recibirán test de antígenos gratis para sus clientes. Hosteltur. January 29, 2021. Retrieved from https://www.hosteltur. com/141727_hoteles-de-dominicana-recibiran-test-de-antigenos-gratis-para-sus-clientes.html 78 World Bank Group (2022). World Development Report. Available at https://www.worldbank.org/en/publication/wdr2022 Fiji Page 30 Figure 16. Percentage of Fiscal Policy Responses to the COVID-19 Crisis, by Country Income Group as of June 30, 2021 100 91 87 90 83 Share of Countries Adopting Policy (%) 80 76 74 70 65 67 58 60 54 54 50 46 41 40 35 34 31 30 20 10 4 0 Tax Breaks for Tax Breaks for Direct Cash Transfers Income Support for Firms Individuals to Individuals Businesses High Income Upper Middle Income Lower Middle Income Low Income Source: World Development Report 2022 Belize Page 31 Table 1. Examples of Short-term Island Crisis Responses to Support the Tourism Sector (February-August 2020) Country Crisis responses Aruba Health measures. A phased re-opening was established: first for visitors from Bonair and Curacao from 15 June 2020; then from most of the Caribbean, Europe and Canada from 1 July 2020, then the USA on 10 July 2020. Advanced public health measures were put in place. Limits were placed on visitor numbers at tourist attractions during peach periods. All arrivals must have a negative COVID-19 test result within 72 hours of arrival (or alternatively test on arrival and spend 24 hours in a hotel pending the results).79 Bali (Indonesia) Return to farming. In Indonesia’s popular tourist island of Bali, tourism employees quickly returned to farming as resorts closed. Tourism-dependent cities like Denpasar, Kuta and Sminkyak neighbors turned empty plots of land into community gardens for food. In two popular tourist islands, Nusa Lembongan and Nusa Pendia, (seaweed farming with its stable prices) has rapidly expanded from 2 to 200 seaweed farmers.80 Other tourism employees have returned to farming and fishing on their family farms, while community members are giving food aid to the unemployed, including rice, noodles, oil and sugar.81 Barbados Digital nomads. Early in the pandemic, the idea of one-year remote work visas was proposed. The ‘Welcome Stamp Visa’ began in July 2020, and by May 2021 more than 2,500 people had applied, mostly digital nomads from the USA, UK, Canada and Nigeria. In a survey of 100 of these visa holders, around 75 percent had never visited Barbados before, and were paying $2,500 to 5,000 per month for housing.82 Corsica (France) Collaborative roadmaps. The island of Corsica’s DMO, Corsica Tourism Agency, lead a consultative process, including a co-ordination platform bringing together all stakeholders to prepare for the recovery and launch promotional campaigns. The crisis reiterated the importance of the Corsican Tourism Roadmap which already advocated for the necessary ecological and digital transition of tourism.83 Cyprus Heath costs. Cyprus pledged to cover the holiday costs of anyone who tested positive for COVID-19 after travelling there (May 2020). A 100-bed hospital was set aside specifically for tourists who test positive, as well as several "quarantine hotels" for the patients' families. Tourists would only need to bear the cost of their airport transfer and repatriation flight.84 Dominican Republic Insurance. Granted free health insurance for tourists to cover any Coronavirus-related costs until the end of 2020 (September 2020).85 This is important as supply has been a challenge during this period. Fernando de Noronha Immunity. The archipelago of Fernando de Noronha reopened to outsiders – as long as they (Brazil) can prove they have been infected and recovered from COVID-19 (August 2020). The results of either PCR virus tests or IgG antibody tests would be accepted if conducted at least 20 days before arrival. The belief was that these tourists were now immune and would neither transmit the virus, nor be infected again.86 This has since been disproven. Fiji No change fees. Fiji Airways sold bulk tickets for forward bookings to premier and corporate clients and waiving all change fees to generate income in the short-term for future bookings.87 79 TravelMole (2020b). Aruba starts phased tourism reopening. 15 June 2020. Retrieved from https://www.travelmole.com/news_feature.php?news_id=2043090 (Accessed: 21 April 2021). 80 King, C. (2020). op. cit. 81 Laula, N. and Paddock, R. C. (2020). With tourists gone, Bali workers return to farms and fishing. 20 July 2020. The New York Times. Retrieved from https://www.nytimes. com/2020/07/20/world/asia/bali-tourism-coronavirus.html (Accessed: 22 April 2021). 82 Palmer, E. (2021). op. cit. 83 OECD (2021a). op. cit. 84 BBC (2020b). Coronavirus: Cyprus to pay holiday costs of infected tourists. 28 May 2020. Retrieved from https://www.bbc.com/news/world-europe-52818749 (Accessed: 21 April 2021) 85 OECD (2021c). COVID-19 in Latin America and the Caribbean: An overview of government responses to the crisis. Updated 11 November 2020. Available at: https://www. oecd.org/coronavirus/policy-responses/covid-19-in-latin-america-and-the-caribbean-an-overview-of-government-responses-to-the-crisis-0a2dee41/ (Accessed: 21 April 2021). 86 Philipps, T. (2020). Brazil’s island idyll reopens to tourists- as long as they have had COVID-19. The Guardian. 30 August 2020. Retrieved from https://www.theguardian. com/world/2020/aug/30/brazil-island-fernando-de-noronha-reopens-tourists-covid-19 (Accessed: 21 April 2021). 87 World Bank (2020). op. cit. Page 32 Table 1. Examples of Short-term Island Crisis Responses to Support the Tourism Sector (February-August 2020) (continued) Country Crisis responses Jamaica Cash support. The government launched a Business Employee Support and Transfer (BEST) program to provide temporary cash transfers to businesses operating in the hotels, tours, and attractions of the tourism sector.88 Sandals Hotel made the 38-room Sandals Carlyle available for patients recovering from COVID-19 and needing to be monitored.89 The Sandals Resorts re-opened in June 2020 with enhanced cleaning protocols (and similarly for resorts in Antigua, Barbados, Grenada, Jamaica, St Lucia and Turks & Caicos). New cleaning protocols include a triple-check system with a minimum of three inspections daily of hard surfaces, including door handles and interiors of vehicles used for airport transfers.90 Macau Domestic promotion. The Macau government introduced subsidized tours for local residents, allocating $35 to two tours each, in a $35 million initiative. The tours were associated for specific training on COVID-19 prior to their commencement.91 (June 2020) Maldives Negative tests. The Maldives reopened unconditionally to international tourists in July 2020, but changed policy by September by requiring all travelers to show proof of a negative COVID-19 test upon arrival. Some high-end properties conduct additional in-resort COVID testing as an added layer of protection against the spread of the virus.92 Papua New Guinea Conservation funding. Conflict Islands Turtle Season Crisis Appeal crowdfunding had raised $9565 to support turtle protection, tagging and rescue (September 2020).93 Samoa Development financing. Awarded $5.1 million from the World Bank for COVID-19 response as part of an IDA grant to most in-need countries. Assistance from the Samoa National Provident Fund includes 20 percent early withdrawal from members in the hospitality sector that lost employment due to the pandemic, and postponement of employer contributions for six months in 2020.94 St Lucia Promotion. Released a marketing campaign to re-boot tourism after re-opening to international visitors. The campaign aimed to highlight responsible reopening and the inspirational spirit of Saint Lucia, implementing policy to coexist with COVID-19.95 (June 2020) St Lucia established COVID-19 certified hotels, that meet the country’s COVID protocols. The country required a negative COVID-19 test up to 7 days before travel, airport screening and completion of a pre-arrival form (July 2020).96 The Seychelles Financial support. The government committed $70 m to guarantee salary payments of all employees until December 2020, and postponed various taxes due between April and June to September 2020. The Central Bank of Seychelles and all commercial banks agreed a moratorium on loan repayments of affected sectors for 6 months, on interest and capital repayments.97 A 2-year cruise ship ban was imposed in May 2020, to minimize the chances of a second wave of COVID-19.98 Two phases for reopening were planned:99 • Phase 1: Private jets to island resorts, acting as holiday destinations and quarantine centers • Phase 2: Opening on the three main islands with limited movement with tracing apps 88 Jamaica Information Service (2020). BEST Cash Component of CARE Programme in Progress for Tourism Workers. Retrieved from https://jis.gov.jm/features/best-cash-component- of-care-programme-in-progress-for-tourism-workers/. (Accessed: 25 August, 2022) 89 TravelMole (2020c). Sandals hands over hotel to help recovering COVID-19 patients. 1 April 2020. Retrieved from https://www.travelmole.com/news/sandals-hands-over-hotel- to-help-recovering-covid19-patients/ (Accessed: 21 April 2021). 90 TravelMole (2020c). op cit. 91 TravelMole (2020d). Macau introduces subsides tours for locals. 18 June 2020. Retrieved from https://www.travelmole.com/news_feature.php?news_id=2043158 (Accessed: 21 April 2021). 92 Marcus, L. (2021). How the Maldives became the biggest 2020 international tourism success story. CNN Travel. 17 February 2021. Retrieved from https://www-cnn-com.cdn. ampproject.org/c/s/www.cnn.com/travel/amp/maldives-tourism-arrivals-coronavirus-intl-hnk/index.html (Accessed: 21 April 2021). 93 Conflict Islands Conservation Initiative (CICI) (2020). Turtle season crisis appeal. Retrieved from https://www.cici.org.au/so/47NGdjfXh#/main (Accessed: 28 September 2020) 94 UNWTO (2020e). op. cit. 95 TravelMole (2020e). Saint Lucia’s new marketing campaign to re-boot tourism. 17 June 2020. Available at: https://www.travelmole.com/news/saint-lucias-new-marketing- campaign-to-re-boot-tourism/ (Accessed: 21 April 2021) 96 Britell, A. (2020). Why St Lucia is a model for reopening tourism in the Caribbean. Caribbean Journal. Available at: https://www.caribjournal.com/2020/08/27/why-saint-lucia-is- a-model-for-reopening-tourism-in-the-caribbean/2043127 (Accessed: 22 April 2021) 97 The Seychelles (2020). Response to the COVID-19 pandemic, Available at https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-06/SEYCHELLES_UNWTO- Presentation-for-Minister.pdf (Accessed: 22 April 2021). 98 TravelMole (2020f). Seychelles imposes two-year cruise ship ban. 21 April 2021. Retrieved from https://www.travelmole.com/news/seychelles-imposes-two-year-cruise-ship-ban/ (Accessed: 22 April 2021). 99 The Seychelles (2020). op. cit. Page 33 Illustrating short responses that took place in one and management, economic relief (see Figure 17) and region, Destination Organization Responses to COVID recovery planning by Caribbean states. Most of the -19: CTO Member States (2020) provides an overview Caribbean states had provided unemployment benefits, of survey responses from 16 member states in May loans and credit lines for SMEs, established tax cuts or 2020. The report shares insights into actions taken deferrals, had boosted health spending and obtained destinations to improve preparedness, mobility, impacts, international financial support. address crisis communication, destination marketing Figure 17. Economic Relief Measures in Response to COVID-19 in the Caribbean as of June 2020100 100 90 80 70 60 50 40 30 20 10 0 Unemployment Benefits SME Loans / Credit Lines Health Spending International Financial Support Tax Cuts /Deferrals Public Utilities Support Job Protection Infrastructure Upgrades Suspension of Tariffs / Duties Cash Transfers Food Programs Price Caps % of 24 CTO Member Countries % of 43 Greater Caribbean Countries Source: George Washington University Box 6. Lessons Learned from COVID-19 Impacts on High-end and Community-based Tourism Research on marine tourism in Indonesia’s Wakatobi the pandemic to be able to come together and respond National Park suggests that the destination has focused to the rupture imposed by the pandemic, and there are on the growth of ‘high-end’ exclusive forms of tourism observations of local homestay owners and community in the past but has neglected livelihood capital and members policing their own reefs from outside fishing made communities more vulnerable to ruptures like boats, despite the lack of tourism income as incentive. COVID-19.101 Here, high-end tourism has not been associated with a significant improvement in social or Recommendations suggest that foreign operators follow human capital, and the natural, physical, and financial the lead of such local initiatives, and that government capital improvements were seen as belonging to the elite institutions increase resources to these groups rather and not greatly benefitting the wider population. than focusing the majority of attention on foreign By contrast, Sao Tomean tour and homestay operators investors and operators.102 have maintained significant enough social capital during 100 The George Washington University (2020). Destination Organization Responses to COVID-19. Available at https://www.onecaribbean.org/wp-content/uploads/CTO- Destination-Organisatons-Responses-to-COVID-19-Report-June-2020.pdf (Accessed: 19 April 2021). 101 King, C. Iba, W and Clifton, J. (2021). “Reimagining resilience: COVID-19 and marine tourism in Indonesia”. Current issues in tourism. Available at https://doi.org/10.1 080/13683500.2021.1873920 102 King, C. Iba, W and Clifton, J. (2021). op. cit. Page 34 Medium-Term Responses SIDS governments and businesses also focused on digitalization in this phase, but implementation success Once the immediate emergency subsided, there was a varied based on the readiness of the industry. A recent shift to medium-term recovery measures, that bridged the World Bank enterprise survey of 594 businesses across space between immediate response and full reopening. Examples of medium-term responses by SIDS included four OECS countries found digital technology was one agreements between governments to mutually recognize of the greatest accelerating trends during COVID-19 COVID-19 vaccination certificates, offers to promote (See Figure 18).103 It also revealed that the enterprises domestic tourism and all-inclusive or long-stays deals for were only tapping into a small portion of the available digital ‘workations,’ and yacht quarantine options (see digital services with a focus on marketing platforms Table 2). This phase also saw SIDS replicate successful and communication applications. The pandemic has strategies seen in other countries such as the digital underlined the digital deficits of these countries, exposing nomad and long stay promotion strategies. Additionally, their lack of preparedness for digital transformation. SIDS government and private sector built on opportunities to continue to lag significantly in the digitalization process, reopen parts of their industries or countries to attempt in comparison to peers at similar levels of socioeconomic to regain a small portion of tourism revenue. This development. This is largely driven by a lack of tumultuous period also meant that responses needed to underlying ICT connectivity and basic infrastructure,104 the flexible as international travel restrictions and health a poor understanding of digital services available, and a guidance fluctuated regularly as the virus and pandemic lack of coordinated leadership in digital transformation. evolved. During this time, while many governments Restrictive financial regulations and policies and poor in SIDS continued to provide financial assistance for financial services, especially on e-payments, are also a workers and tourism businesses in the medium-term specific challenges in digitalization in many SIDs. phase, very few implemented criteria on what types of businesses to support and even fewer integrated any Digital education and training services was one area of social or environmental screening. digitalization that saw success during this medium phase. With the shut down of in person training and education Globally digital transformation was especially important and the sharp need for technical resources and knowledge during this phase of recovery. The pandemic accelerated digitalization across all sectors as physical interaction on business crisis adaptation, the tourism industry saw and travel was limited. This spurred contactless service a boom of e-education services. For example, UNWTO’s delivery in hospitality, increased virtual business meetings launched an online academy in 2020, the Pacific Tourism and event services, and a host of virtual experiences to Organization (SPTO) bolstered its online tourism satisfy entertainment needs during period lockdowns. resource center and hosted webinars and online trainings From a government perspective, the pandemic increased for industry and governments, and the Pacific Asia Travel the need for consistent, transparent and regular Association (PATA) launched a series of Government communication, often delivered through digital means Insight Exchanges to help its members share response across multiple media platforms. Governments also and reopening strategies. Portugal’s digital academy for used this time to accelerate investments in e-government tourism (see Box 7) is an example of leveraging digital services to avoid in person service delivery. tools to research a wide audience. Box 7. Digital Academy for Tourism: Portugal Focused on promoting the development of people and Digital Academy provided 168 Executive Training the training of companies, in 2020 Turismo de Portugal online certificates and offered online consultancy to 359 launched the Digital Academy, an online platform enterprises. For the academic year 2020/2021, those 12 developed to face the growing demand for training Portuguese tourism schools received 2,923 applications and access to information in this area, offering courses, for a total of 1,740 vacancies, and some courses registered workshops, seminars and training services tailored to demand levels above 450 percent of the available spaces, 12 Portuguese tourism schools. In just 18 weeks, the showing the success of the program.105 103 World Bank (2021). Business Enterprise Survey Results, Internal report, OECS Blue Economy Tourism Analytics, Acorn and World Bank Group. 104 UNWTO (2020). UNWTO launches its first online education committee. December 22, 2020. Retrieved from https://www.unwto.org/news/unwto-launches-its-first- online-education-committee 105 Opção Turismo. 15 October 2020. Turismo de Portugal launches Digital Academy. Retrieved from: https://opcaoturismo.pt/wp/es/turismo-de-portugal-lanca-academia- digital/ Page 35 Figure 18. COVID-19 Impacts in Four OECS Countries COVID-19 IMPACTS DOMINICA GRENADA SAINT LUCIA SVG Level of impact of COVID-19 on business income (Out of 10) 8.7 8.6 9.7 9.8 Changes to business practices Increased use of Increased use of Increased use of Increased use of due to COVID technology technology technology technology (Top change) Digital marketing Digital marketing Main use of Digital marketing Communication platforms. platforms. technology due to platforms. applications. Business Business COVID Communication Online Banking administration administration (Top change) applications. and finance. software. software. Priority areas to 1. Sustainable address as the 1. Reduced litter 1. Reduced litter 1. Reduced litter tourism country emerges 2. Sustainable 2. Recycling 2. Sustainable 2. Reduced litter from COVID tourism 3. Sustainable tourism pandemic 3. Improved 3. Wellness tourism tourism 3. Recycling (Top 3) sanitation Source: World Bank (2021), Business Enterprise Survey Results, Internal report, OECS Blue Economy Tourism Analytics, Acorn and World Bank Group. Table 2. Examples of Medium-term Recovery Responses to Support the Tourism Sector (November 2020-April 2021) Country Crisis responses Aruba Digital Vaccine Passport. In March 2021 Aruba teamed up with Jet Blue, an airline which offers about 40 weekly flights from the United States to the island, to debut the world’s first digital vaccine passport: CommonPass. People with the digital pass may take a virtually supervised at- home PCR test within three days of departure, upload results and reduce their immigration time. Vaccination information will be added to CommonPass as early as June 2021.106 As of mid-May 2021, almost 57,500 Arubans were at least partially vaccinated, with the island optimistically reaching herd immunity by summer 2021.107 Caribbean Remote work visas. The remote-work concept initiated in Barbados (see Table 1) has been adopted across the Caribbean by countries including Anguilla, Aruba, Antigua & Barbuda, the Bahamas, Bermuda, the Cayman Islands, Curaçao, Dominica and Montserrat.108 French Polynesia Full closures. In February 2021, (6 ½ months after first reopening), the islands of French Polynesia suspended entry for nearly all travelers. Border closure for islands like Tahiti, Bora Bora, and Mo’orea was an attempt to protect Polynesians from contagious new variants of COVID-19 and prevent a full lockdown.109 The government offered financial assistance to hotel and resort employees, and to tour operators, providing compensation for up to three months for those who have lost their income.110 106 T Palmer, E. (2021) op. cit. 107 Palmer, E. (2021) op. cit. 108 Palmer, E. (2021) op. cit. Page 36 Table 2. Examples of Medium-term Recovery Responses to Support the Tourism Sector (November 2020-April 2021) (continued) Country Crisis responses Maldives Long stays. In Maldives, One&Only resort capitalized on people using digital-only for work and school, and devised a special package for guests staying a full month. The 28-day offering included meals, high-speed internet, wellness activities and use of a kids’ club and is priced from $42,600 for a family of four.111 The Anantara Veli sold “all-you-can-stay” packages for unlimited bookings during 2021 at a cost of $30,000.112 The Nautilus Maldives, promoted a “workation” package priced from $23,250 for 7 days, or 3 weeks for $52,000, including a dedicated personal assistant, non-stop refreshments and complementary laundry.113 St Lucia & Barbados Negative tests. Established new entry rules requiring all visitors to produce a negative COVID PCR test, taken no more than 5 days before arriving in St Lucia, and 3 days before landing in Barbados (from February 2021).114 Thailand Quarantines. A yacht quarantine programme allows visitors with a negative coronavirus test to spend their mandatory 2-week quarantine period on board a yacht or small cruise ship on the island of Phuket. Beginning in March 2021, the government hopes to generate $58 million in yacht tourism revenue.115 Phuket plans its own private COVID vaccination program for 250,000 residents, ahead of the national program (due in June 201), to spearhead a tourism industry recovery.116 Thailand hoped attract retirees escaping the European winter and others who could stay for an extended period with special extended-stay visas (up to 9 months). Visitors have to go through quarantine, but could do so in high-end resorts. Over 100 resorts re-opened for these travelers, but only 346 overseas entered the country between October 2020 and January 2021 (vs a target of 1,200).117 Turks and Caicos Private sector action. In January 2021, a new requirement of the US government for inbound international tourists to show proof of a negative antigen test threatened to close tourism for a second time. Despite low infection rates and high levels of vaccinations, the country lacked the necessary testing infrastructure to meet the USA’s new restrictions. With financial support of $600,000 provided by Seven Stars Resort & Spa, the territorial government and private sector imported 60,000 test kits, certified 18 new testing sites (mostly at resorts), trained hotel staff to conduct tests, and passed new health standards laws. These measures averted the threatened closure. Since January 2021, the number of private jet flights has risen to 73 percent above 2019 pre- pandemic rates. Overall, tourism to the archipelago hovers around 70 percent capacity, but Seven Stars (offering drink vouchers along with complimentary COVID-19 tests) is fully occupied for May and almost sold out for June 2021.118 US Virgin Islands Low restrictions. Borders never closed, and promotional slogans like “Reconnect with Paradise” and the opportunity for anyone to get vaccinated have encouraged visitors. Visitors are required to get tested but not to quarantine. The US Virgin Islands had fully vaccinated 31,645 residents and tourists as of mid-May and is on track to administer 50,000 first shots by 1 July.119 109 Carey, M. (2021). Bora Bora and Tahiti have closed their borders to tourism. Conde Nast Traveler. 8 February 2021. Retrieved from https://www.cntraveler.com/story/ bora-bora-and-tahiti-have-closed-their-borders-to-tourism (Accessed: 21 April 2021). 110 Carey, M. (2021). op. cit. 111 Marcus, L., (2021). How the Maldives became the biggest 2020 international tourism success story. CNN Travel. 1 February 2021. Retrieved from https://www-cnn-com. cdn.ampproject.org/c/s/www.cnn.com/travel/amp/maldives-tourism-arrivals-coronavirus-intl-hnk/index.html (Accessed: 21 April 2021). 112 Marcus, L., (2020). Maldives resort offers $30 k ‘all-you-can-stay’ package. CNN Travel. 13 November 2020. Available at: https://edition.cnn.com/travel/article/anantara- maldives-annual-pass-intl-hnk/ (Accessed: 21 April 2021). 113 Hardingham-Gill, T. (2020). Maldives resort launches $2,250 luxury remote working package. CNN Travel. 17 September 2020. Retrieved from https://edition.cnn.com/ travel/article/maldives-workation-package/index.html (Accessed: 21 April 2021). 114 TravelMole (2021b). Caribbean nations to introduce mandatory COVID tests. 3 February 2021. Retrieved from https://www.travelmole.com/news/caribbean-nations-to- introduce-mandatory-covid-tests/ (Accessed: 21 April 2021). 115 CNN (2021). Thailand launches yacht quarantine for tourists. 9 March 2021. Retrieved from https://www.bbc.com/news/business-56329806 (Accessed: 21 April 2021). 116 TravelMole (2021c). Phuket plans to go it alone with private vaccination drive. 3 February 2021. Retrieved from https://www.travelmole.com/news/phuket-plans-to-go- it-alone-with-private-vaccination-drive/ (Accessed: 21 April 2021). 117 Tahnthong-Knight, R. (2021). Thailand sold itself as a paradise COVID retreat. No one came. Bloomberg. 16 January 2021. Retrieved from https://www.bloomberg.com/ news/articles/2021-01-15/thailand-sold-itself-as-a-paradise-covid-retreat-no-one-came (Accessed: 21 April 2021). 118 Palmer, E. (2021). op. cit. 119 Palmer, E. (2021). op. cit. Page 37 Mapping Longer-Term Sustainability and environmental sustainability, and an over-reliance Pathways on international tour operators and cruise lines. SIDS are highly vulnerable to climate change; for example, If recovery is about “returning to normal” or pre- the Caribbean region recorded more than 400 natural pandemic visitor numbers, it will fail to address some disasters since 1950,120 and Vanuatu and Tonga were of the underlying challenges facing tourism in SIDS. ranked as the first and second most disaster-prone Many SIDS’ tourism sectors were facing challenges countries in the world.121 even before the pandemic due to poor sector and regional coordination, poor international transportation This section of the report connects some of the key connectivity, low digitalization of the sector, and a lack of challenges facing tourism with new trends in consumer focus on conservation and climate adaptation. There has demand, and some potential strategies for great been a predominant focus on sun and sea tourism and sustainability (see Figure 19). It also highlights resources consequent lack of market and product diversification, and tools from the Blue Tourism Resource Portal that limited ICT and digital capacity, low investment in ICT can help inform this transition. Figure 19. Mapping Longer-term Sustainability Pathways Challenges Trends in Market Strategies Tools & facing tourism Consumer for Sustainable Resources in SIDS Demand Tourism in SIDS Impact of COVID-19 and Interest in nature-based Shifting towards Blue crisis of demand activities sustainable resorts Tourism Lack of market and Sustainable and local Enhancing local supply Resource product diversification experiences chain linkages Portal Concerns about health Attracting digital nomads Weak local supply chains and safety and long-term stays Low capacity and weak Longer stays and Expanding the high-value coordination higher spending wellness market Poor Information, tech. Digital booking and Leveraging eco and and coms. infrastructure customer engagement adventure tourism Over-reliance on Building inter-regional international operators yachting and cruise lines Capturing higher value Poor connectivity from cruise passengers Vulnerability to climate change & biodiversity loss Gender inequality and Gender-based violence Source: The World Bank 120 World Bank Group (2021). 360° Resilience: A Guide to Prepare the Caribbean for a New Generation of Shocks. 121 United Nations University (2016). World Risk Report 2016. Available at https://collections.unu.edu/eserv/UNU:5763/WorldRiskReport2016_small_meta.pdf Page 38 Challenges Facings Tourism in SIDS by a regular tourist.123 Not surprisingly, spending per Over-reliance on international tour operators and cruise visitor arrival is therefore negatively correlated with visitors weakens the sector’s potential for inclusive the share of visitors that are cruise passengers (Figure growth and community benefit. In the Caribbean, cruise 20). Further, countries with higher share of cruise visitor passengers make up nearly 59 percent of all visitors but arrivals (as a portion of overall arrivals) also appear to contribute less than 10 percent of total expenditure.122 have experienced stronger GDP declines in 2020 due to On average, each cruise passenger spent US$73 per COVID-19 and slower recoveries in 2021 according to visit in the local economy, compared to US$1,700 spent UNWTO and World Bank Group data.124 Figure 20. Relationship between Share of Cruise Visitors and Expenditure per Arrival125 100% 90% ST VINCENT & THE GRENADINES Percentage of cruise arrivals / 80% ST KITTS BAHAMAS & NEVIS ANTIGUA & BARBUDA total visitor arrivals 70% DOMINICA GRENADA 60% SAINT LUCIA 50% BARBADOS 40% ARUBA JAMAICA 30% TRINIDAD & TOBAGO 20% DOMINICAN 10% REPUBLIC 0% 200 300 400 500 600 700 800 900 1000 1100 Expenditure per visitor arrival (US$) Source: UNWTO, Compendium of Tourism Statistics, Data 2015-2019, 2021 Edition Also common in SIDS are weak local supply chains for the pandemic. Lack of childcare support, harassment, tourism. In the Caribbean, between 30 and 80 percent gender-based violence are barriers to women’s full of the tourism spending does not stay in the country.126 participation in the labor force and pay equity. Women Even in local vegetable and fruits, production are often in Dominica and Jamaica, for example, earn about 85 seasonal, quality may be low or inconsistent and cold cents for every dollar earned by men. The COVID-19 storage absent, which makes it difficult for hotels to buy crisis disproportionally affected women – who tend to local products. work in sectors that require in person presence such as Women are prominent in tourism but generally trade, personal services, education, and tourism – with disadvantaged and have particularly been impacted by job losses 15 percentage points higher than men.127 122 UNWTO Compendium of Tourism Statistics, Data 2015-2019, 2021 Edition. UNWTO. Madrid. Expenditure includes international receipts for travel items. These are expenditures by international inbound visitors in the reporting economy and do not include payments for international transport. This has been used due to a lack of receipts data that includes international transport for most countries in the set. Estimates have been made with 2015-2019 averages. Spending levels for cruise passengers are based on the research below. Countries included are: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Sint Kitts and Nevis, Saint Lucia, Saint Vincent and The Grenadines, Trinidad and Tobago, Jamaica and Dominican Republic. 123 Business Research & Economic Advisors (2018). Economic Contribution of Cruise Tourism to the Destination Economies. Florida-Caribbean Cruise Association. October 2018. Spending by cruise passengers per country does not include all Caribbean destinations: US$73.55 in Antigua and Barbuda, US$131.95 in Bahamas, US$77.8 in Belize, US$64 in Barbados, US$52.67 in Saint Vincent and the Grenadines, US$51.5 in Grenada, US$54.2 in Trinidad and Tobago and US$81.12 in Saint Lucia. Regular tourist expenditure has been calculated with UNWTO data from 2018. 124 UNWTO, Compendium of Tourism Statistics, Data 2015-2019, 2021 Edition; IMF World Economic Outlook; World Bank national accounts data; OECD National Accounts data files. 125 Averages of spending and share of cruise visitors from 2014 to 2019. Visitor arrivals include both tourists (overnight visitors) and excursionists (visitors who don’t spend the night). For the region, excursionists and cruise visitors are the same. 126 Russel, D. (2020). Addressing Leakages between the Tourism Hotel Sector and Other Sectors in the Bahamas. Walden University. Retrieved from https://scholarworks. waldenu.edu/cgi/viewcontent.cgi?article=10909&context=dissertations 127 World Bank’s Gender Innovation Lab for Latin America and the Caribbean (2021). The Gendered Impacts of COVID-19 on Labor Markets in Latin America and the Caribbean. January 2021. Retrieved from https://documents1.worldbank.org/curated/en/675641612934705667/pdf/The-Gendered-Impacts-of-COVID-19-on-Labor- Markets-in-Latin-America-and-the-Caribbean.pdf Page 39 Digital transformation of SIDS tourism sectors is Successfully implementing digital transformation will hindered by poor leadership and coordination, limited allow SIDS tourism industries to reduce costs, increase digital skills and knowledge, lack of accessible data, and market penetration and boost profits, helping drive a weak regulatory environment. In SIDS these sectoral entrepreneurship, employment and inclusiveness. There challenges are exacerbated by limited investments in is now much more market intelligence and digital ICT infrastructure, particularly in remote tourism technologies available to gain greater customer insight destinations. While there is no single barrier holding and preferences.130 Greater digital readiness is positively back business and destination investment in digital, correlated with tourism receipts,131 while improved sector coordination and leadership is a critical gap in adoption of digital services can lead to reduced costs as SIDS where national tourism organizations can be weak businesses use digitization to optimize operations and cut and underfunded. Since digitalization activities are transaction expenses.132 However, most tourism SMEs spread across multiple agencies at national and regional in emerging economies have not explored the full range levels, poor coordination can create duplication or of digital services available to them and instead focus misalignment of efforts. Poor leadership in digitalization on traditional digital services like marketing, booking means that digital skills development, tourism data platforms and social media. Real business productivity collection and analysis, and policy are not prioritized gains typically come from backend digital services in government planning. Finally, poor leadership means like property management systems, payment gateway that policies can be misaligned with rapid developments services, inventory management, financial management, in TravelTech. Regulations are not always maintaining and human resource systems that can reduce the amount pace with technology driven tourism business models, of time spend on business management. creating gaps in regulation that can impact destination International connectivity is an additional barrier to competitiveness and create a void for new, tech-driven market diversification, while limited intra-regional tourism business models. connectivity and coordination in tourism thwarts the Competition policy is a critical area of concern for potential for multi-country tourism product. Caribbean SIDS that have smaller markets and face economies of countries are less likely to connect among them than scale challenges. The World Economic Forum (WEF)’s with the rest of the world, even when the routes with Latin America and Caribbean travel and tourism at least one connection is considered.133 Moreover, competitiveness landscape recognizes that industry although competition for extra-regional routes exists, services are already increasingly dominated by a small the market for routes within the Caribbean is very number of operators.128 Travel businesses are serviced by concentrated. Limited international air connectivity – online travel aggregators (OTAs), meta-search engines, although not equally problematic for all destinations – travel service platforms and sharing economy players such is a barrier to attract growing markets such as China as Airbnb.129 Large, online platforms have the tendency or India and leaves the region highly dependent on a to concentrate market power, especially in smaller narrow set of source markets. For example, the United markets like SIDS, inhibiting entry and competition States represents over 60 percent of non-cruise arrivals from other businesses. While the use of direct marketing to the region.134 can enable SMEs to connect directly with domestic Accelerated Market Demand Trends and international markets, this comes with marketing, promotion, use and developments costs typically born COVID-19 has dramatically reduced tourism consumer by the larger tech companies. Governments have a demand and increased traveler perception of risk but has role to play in both creating competitive markets and also accelerated some pre-existing market trends. Five innovation ecosystems that can support the development important market trends are listed here that are likely to of locally led technology solutions. influence opportunities for SIDS. 128 World Economic Forum (2020). Latin America and Caribbean Travel & Tourism competitiveness landscape report: Assessing regional opportunities and challenges in the context of COVID-19: Insight report July 2020, Available at.: http://www3.weforum.org/docs/WEF_LAC_Tourism_Compet_Report_2020.pdf (Accessed: 22 April 2021). 129 World Economic Forum (2021). Latin America and Caribbean travel and tourism competitiveness landscape report: Assessing regional opportunities and challenges in the context of COVID-19. Available at https://www3.weforum.org/docs/WEF_LAC_Tourism_Compet_Report_2020.pdf 130 World Economic Forum (2017a). Digital Transformation Initiative: Aviation, Travel and Tourism Industry, White Paper, 2017. 131 World Economic Forum (2017b). The Travel & Tourism Competitiveness Report 2017, 2017, p. 6. 132 World Economic Forum (2017a) op. cit. 133 Briceño-Garmendia C. et al. (2015). Connectivity for Caribbean Countries An Initial Assessment. World Bank Group. Transport and ICT Global Practice. January 2015. 134 UNWTO (2019). Country-specific: Arrivals of non-resident tourists at national borders, by country of residence 2014 – 2019, based on 2018 and 2019 data. Page 40 1. Increased interest in active, outdoor, and nature- facilities, according to the ATTA 2018 Adventure based activities, with a greater focus on sustainable, Tourism Development Index.139 This stresses the eco and nature-based destination. A recent importance of health standards for the industry longitudinal study by Booking.com found that and investing in public health infrastructure for the interest in staying at green accommodations has future. It also points to opportunities for wellness grown by over 30 percent between 2016 and and restorative tourism for those wanting to escape 2021 and reveals how much this trend has been the mental stress of lockdowns and illness. strengthened by the pandemic, growing from 73 4. Longer lengths of stay and higher spending per percent in 2019 to 81 percent in 2021.135 Similarly, trip. The World Bank Tourism Watch indicated to better understand how the COVID-19 pandemic that international tourism receipts have recovered changed traveler decision-making and attitudes on faster than volumes of visitors, increasing 15 destinations, the World Bank conducted in-depth percent in 2021 to reach US$1,500 per tourist due desk, qualitative and quantitative market research to pent-up savings and longer lengths of stay.140 on three key European outbound markets (United This suggests that higher spending markets are Kingdom, Germany, and Sweden) and determined returning faster than lower spending segments and that at least one in three British and German tourists provides opportunities to accelerate the long-desired preferred to travel to sustainable, eco and nature- transition to higher spenders in SIDS. This could be based destinations post COVID-19. As for the due to the differing impacts of the virus on different potential, across the three source markets surveyed income groups. In the US, lower income groups over 70 million tourists were interested in traveling were found to be hit the hardest and therefore less to SIDS.136 likely to take a vacation.141 2. Tourists are placing more importance on 5. Digital booking and customer engagement. The sustainability and ensuring that the economic pandemic has also pushed more travelers to book benefits of tourism reach local communities. For directly (without intermediaries) and book once in example, consumer market research undertaken the destination, driven by the need for more flexibility, post COVID-19 by Booking.com with a sample of shorter planning timelines, and better cancellation 30,134 respondents across 32 countries shows that policies when booking direct. Travelers appear to focus 71 percent of them want to travel more sustainably direct booking on accommodation, transportation, (up 10 percent from 2021) and 53 percent are more site tours and guides, travel insurance and activities. determined to make sustainable travel choices when This is likely linked to more in-destination booking, they travel now than a year ago.137 This highlights particularly for site tours, guides and entertainment. the need for coastal and marine ecosystem protection Overall, in-destination booking has been increasing, to drive demand, enhance visitor satisfaction and especially among younger travelers, driven by digital ensure sustainability of critical marine assets. advancement and a desire for flexibility, spontaneity, 3. Increased concern about safety and health risks. and authenticity.142 This latter trend is also paired After their own vaccination status, destination with a desire for more direct customer engagement hygiene, healthcare and travel restrictions are and personalization. Younger travelers in particular among top COVID-19 concerns affecting travelers’ want to build relationships with businesses before, holiday decisions. At the destination, the next most during and after the trip with an expectation that this important factors impacting traveler choice are the leads to an experience personalized to their specific levels of hygiene and sanitation and availability of needs and interests. Leveraging technology, such as quality healthcare.138 This result is relevant to SIDS artificial intelligence and data scraping, to deliver this as the tend to do worse on health indicators and in a cost-effective manner is critical for businesses. 135 Booking.com (2021). op. cit. 136 World Bank Group (2021) New Tourism Demand Trends: Risk, Health and Sustainability in the Age of COVD 19, World Bank Group, Washington D.C. 137 Booking.com (2022). op. cit. 138 World Bank Group (forthcoming) op. cit. 139 Adventure Travel Trade Association and George Washington University (2018). 2018 Adventure Tourism Development Index. Retrieved from https://learn.adventuretravel. biz/research/2018-adventure-tourism-development-index 140 World Bank Group, March 2022. Tourism Watch – Quarterly Report Issue 1. 141 Pew Research Group (2020). Economic Fallout From COVID-19 Continues To Hit Lower-Income Americans the Hardest. https://www.pewresearch.org/social- trends/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower-income-americans-the-hardest/ 142 World Bank Group (forthcoming) op. cit. Page 41 Strategies for Longer-term Sustainability added segments and capturing more local benefit (for This note proposes seven strategies that could help SIDS communities, women, the poor and for conservation) longer-term sustainable recovery from COVID-19 and from existing ones. Given differences in destination and four critical enablers. These strategies are proposed to help country endowments, development stages, institutional diversify tourism products and markets, take advantage and regulatory frameworks as well as destination and of new market trends, and support the transition to a segment maturity, an overview of each strategy is provided more sustainable tourism model. The strategies follow along with examples of destinations that have successfully two basic principles: diversifying into higher value- implemented parts of these strategies. Figure 21. Options for Building more Diversified and Resilient Tourism in SIDS Sustainable resorts Improve value Local supply capture from chain linkages cruises ENABLERS Coordination Connectivity Digitization Intra-regional Conservation Long-stays and yachting Capacity digital nomads Adventure High-value tourism wellness Source: The World Bank 1. Shifting towards more sustainable resorts social and environmental sustainability. Traditional all- inclusive resorts are often foreign owned and operated, All-inclusive resorts were the fastest growing market in present limited managerial opportunities for local people, the accommodation sector before the pandemic. In the and have high food quality standards that may not be able first six months of 2019, this market generated $7.9 to be reliably supplied by local farmers resulting in high billion in sales, a 20 percent increase compared to five levels of economic leakage. However, they often play a years earlier.143 Despite the pandemic, sector outlook vital role in connecting islands with charter air transport remains positive, but the pressure is mounting to increase and increasing the profile of the destination.144 143 Bloomberg (2019). Marriot Jumps Into All-Inclusive Resorts with Ritz-Carlton Deal. August 5, 2019. Retrieved from https://www.bloomberg.com/news/ articles/2019-08-05/marriott-jumps-into-all-inclusive-resorts-with-ritz-carlton-deal?sref=xmjisioJ 144 Garcia, C. (2013). Tourism Development in Cape Verde: Is it Time to Abandon the All-Inclusive Model? Report No. 83712-CV, World Bank, Africa Region. Page 42 The growth of socially conscious travelers has inspired carbon offsets, local produce, conservation efforts, some resorts to charge a premium for increased water and waste recycling and local education and local content, reduced use of plastics, and improved CSR programs. environmental management (renewable energy and 2. Enhancing local supply chain linkages water systems) and build comprehensive corporate social responsibility programs (CSR) like building schools, food Experience from WBG operations and knowledge banks etc. The World Bank consumer research found products offers insights on how to enhance local linkages that 72 percent of travelers surveyed liked the concept and increase business circularity. Linkage programs of a sustainable all-inclusive holiday and 60 percent said work to connect producers with hotels to understand it would make they feel happier and more comfortable where demand exists, and where import substitution can realistically occur. This depends on improving supply about traveling.145 and availability and quality of goods produced, existing Further, the increased segmentation of the all-inclusive creative industries, and availability of external service markets, with luxury and boutique resorts attracting providers on the one side. There may be a win-win for more attention, could support a transition to a environment and local producers where a premium may higher-value model.146 Examples of islands that have be paid for sustainably sourced fish and organic produce. had success in attracting high end segments include Often this involves some upfront training, the facilitation Maldives, whose industry largely depends on its of investment in agriculture-related infrastructure and unique concept “one resort, one island”;147 Seychelles, technology, such as cold storage and smoking facilities.152 It also involves encouraging tourism operators to buy which offers a highly distinctive tourism product with locally (where available) rather than imported produce relatively low tourism volumes;148 Mauritius, with very to reduce reliance on imports (and associated packaging) high levels of service quality in its leading resorts;149 increasing networking between producers and consumers, or French Polynesia (Tahiti), whose receipts for travel increasing awareness by tourists of local cuisine items had an exponential growth from 2010 to 2018.150 through promotion campaigns, crafted menus, and the Examples of more sustainable all-inclusive resorts can establishment of in-hotel markets for local produce to be found in Brazil, Mexico, Costa Rica, Vietnam and increase visitor demand for local ingredients. A project in elsewhere. They include Six Senses Ninh Van Bay,151 Fiji, for example, supported by WBG did just this to link Hotel Xcaret, Riviera Maya, Copa de Arbol, Costa Rica sustainable seafood to hotels.153 Another in Jamaica has and others. CSR features include sustainable design, improved supply chains to larger resorts. Box 8: Jamaica’s Linkages Programs Jamaica has worked to establish linkages programs A 2015 Tourism Demand Study in Jamaica estimated with relative success, but bottlenecks and opportunities that around 25.5 percent of agricultural goods and for expansion remain. Jamaica has undertaken several 33 percent of manufacturing goods were purchased initiatives since at least 1996, ramping up efforts from abroad by hotels, with important differences from 2015 with the creation of the Tourism Linkages depending on the specific product.154 The study laid Council. Since 2016, the Ministry of Tourism’s Speed out country-specific recommendations: increasing the Networking Event, organized by the Tourism Linkages ability of food producers to match quantity and quality Network (TLN), has generated over US$4.5 million in business between local small and medium enterprises. through targeted capacity building and aggregation for However, leakage is still an issue, although its degree producers; strengthening information systems to collect, varies depending on the kind of product or service, as analyze and disseminate sourcing data and introducing well as the typology of accommodation establishments. incentives to the use of local content to investors. 145 World Bank Group (forthcoming) op. cit. 146 Julia Buckley (2019). The future of sustainable tourism may lie with all-inclusive resorts. CNN Travel. November 9, 2019. Retrieved from https://www.cnn.com/travel/ article/all-inclusive-resorts-sustainable-travel/index.html 147 Asian Development Bank (2019). Maldives: Economic Update 2019. Available at https://www.adb.org/sites/default/files/institutional-document/544946/maldives- economic-update-2019.pdf 148 Bennett, O., McEwen, D. (2010). Seychelles Tourism Value Chain Analysis. Commonwealth Secretariat. October 31, 2010. Available at https://www2.gwu.edu/~iits/ unwto2012/Seychelles_Tourism_Value_Chain.pdf 149 Bennett, O., McEwen, D. (2010) op. cit. 150 World Bank Group (2022). World Development Indicators. Retrieved from https://data.worldbank.org/indicator/ST.INT.TVLR.CD?locations=PF 151 Six Senses Ninh Van Bay. Webpage available at https://www.sixsenses.com/en/resorts/ninh-van-bay 152 International Finance Corporation (2018). From the Farm to the Tourist’s Table: A Study of Fresh Produce Demand from Fiji’s Hotels and Resorts. International Finance Corporation, Suva, Fiji. 153 WWF (2015). Bringing sustainable seafood from fishers to hotels https://wwf.panda.org/wwf_news/?249114/Bringing-sustainable-seafood-from-fishers-to-hotels 154 Jamaica Social Investment Fund (2015). Tourism Demand Study. Retrieved from: https://www.mot.gov.jm/sites/default/files/public/tourism_demand_study.pdf However, small sample source (20 properties) and type (the majority were not all-inclusive resorts) could point to a higher rate of leakage. Page 43 3. Attracting digital nomads and long-term stays Attracting longer stays, and digital nomads in particular, requires the development of a special tourism attraction Digital Nomadism has dramatically increased with the strategy. Supply considerations include relocation services; onset of the pandemic and the higher prevalence of home- special visa options and taxation policies; high-quality office and other flex-work options. Per Airbnb’s Q3 2021 of life (at a lower relative cost of living);162 including earnings report, long-term stays of 28 days or more are access to affordable, healthy food options; good climate the company’s fastest-growing trip length and accounted conditions; affordability of services;163 reliable and for 20 percent of nights booked that quarter, up from affordable telecommunications infrastructure, especially 14 percent in the same quarter the year before.155 A July internet connection; safety and security; and availability 2021 article from Travel Pulse reveals that Global Data’s of healthcare services.164 newest poll has found that lengthier holidays are on the rise as more people begin traveling again. The poll found 4. Expanding the high-value wellness market that more than one in four travelers (26 percent) would Wellness and restorative tourism is a valuable and growing prefer taking a trip of over ten nights, the second-highest segment post pandemic. Prior to the pandemic, wellness trip length in the survey. Potential market segments tourism was growing faster than overall tourism—8.1 within the long-stay tourism include retirement tourism, percent annual growth rate from 2017-2019 compared backpackers, and digital nomads. This latter segment to 5.2 percent for the rest of the industry. In countries is comprised of independent workers who leverage such as Maldives or Seychelles, receipts from wellness technologies to work remotely from anywhere in the tourism arrivals represented $315.1 million and $282.8 world.156 According to a recent research study, 15.5 million million in 2017, respectively.165 Due to COVID-19, the American workers currently describe themselves as digital global market dropped to $435.7 billion in 2020 but is nomads, an increase of 42 percent from 2020 and 112 now experiencing a resurgence and expected to grow to percent from the pre-pandemic year.157 As for retirement $816.5 billion in 2022, and to US$1.1 trillion by 2025 tourism, growing ageing population means senior tourism with an average annual growth rate of 21 percent.166 will become an evolving and changing market segment Wellness tourism offers an opportunity for SIDS to attract in the following years. Senior travel has become seasonal higher spending tourists, while leveraging underutilized and, as a result, older adults travel outside the peak season natural assets. SIDS have rich natural resources as well because most have retired or their children have grown as a varied number of medicinal and aromatic plants that up, enabling them to take more holidays than travelers in have uses in wellness and beauty care, as it happens in the other age groups.158 Caribbean region.167 On the other hand, both domestic The promotion of long-stay tourism can also contribute and international wellness travelers spend more on to wider spending in more peripheral locations.159 average per trip (178 percent more in the first case and Anecdotal evidence from Barbados suggests long-stay 53 percent more in the second case) and look to continue tourists spend as much as 12 times as regular tourists.160 their wellness lifestyle during travel, thereby creating Further, destinations benefit from long-stay program opportunities for businesses such as yoga studios or application fees and increased total tourism expenditure healthy food markets. In addition to wellness experiences, in the local economy, without the risk of generating job they also need transportation, food and lodging.168 displacement of the local population. In contrast, shorter Wellness tourism may also help destinations to reduce trips sometimes generate an overconcentration of tourism the seasonality of visitor flows and mitigate the negative flows in specific areas with a more intensive use of impacts of mass tourism. However, to be competitive, SIDS transport infrastructure.161 need further investments in this area. While there is a well- 155 Airbnb (2021). Shareholder letter Q3 2021. Available at https://s26.q4cdn.com/656283129/files/doc_financials/2021/q3/Airbnb_Q3-2021-Shareholder-Letter_Final.pdf 156 MBO Partners, Inc. (2018). op. cit. 157 MBO Partners, Inc. (2021). The Digital Nomad Search Continues. Available at https://www.mbopartners.com/state-of-independence/2021-digital-nomads-research-brief/ 158 Patterson, I. Balderas, A. (2020). Continuing and Emerging Trends of Senior Tourism: A Review of the Literature.  Journal of Population Ageing; Dordrecht. Volume 13, N.º 3. Sep 2020: 385-399. Available at https://www.proquest.com/docview/2071417041?pq-origsite=gscholar&fromopenview=true 159 MBO Partners, Inc. (2021). op. cit. 160 World Bank Group (2021). The Future of Travel & Tourism Webinar. October 29th, 2021. 161 Garcia-Palomares, Gutierrez & Minguez, 2015; Ram & Hall, 2018. 162 MBO Partners, Inc. (2018). op. cit. 163 Katelyn Smith (n.d.). The Pros and Cons of Being a Digital Nomad. The Remote Nomad Blog. Retrieved from http://www.theremotenomad.com/blog/the-pros-and-cons- of-being-a-digital-nomad 164 Gustafson, P. (2002). Tourism and seasonal retirement migration. Annals of Tourism Research, 29(4), 899-918. Available at http://doi.org/10.1016/S0160-7383(01)00084-6 165 Global Wellness Institute (2018). Global Wellness Tourism Economy. November 2018. Retrieved from https://globalwellnessinstitute.org/wp-content/uploads/2018/11/ GWI_GlobalWellnessTourismEconomyReport.pdf 166 Global Wellness Summit (2021). Global Wellness Trends 2021. Retrieved from: https://www.globalwellnesssummit.com/trends-2021/ 167 LCT Consulting and Associates LTD (2013). op. cit. 168 Global Wellness Institute (2018). op. cit. Page 44 established spa industry in many of the SIDS analyzed – destinations such as Costa Rica, Mexico and Thailand.170 such as Maldives, Mauritius, St. Kitts & Nevis or Belize–, Addressing these areas will require support to the business some of them face a lack of standards/regulations and environment to attract investment, new quality standards, skilled workforce,169 and some others require upgrades enhanced coordination, and capacity building to meet to appeal to international customers and compete with international standards. Box 9: Wellness Tourism in Costa Rica To promote and strengthen the wellness destination professional upskilling in the wellness niche for the within the Costa Rican portfolio, the Costa Rican tourism sector, and give tourism companies marketing Tourism Board (ICT) signed a framework cooperation tools to promote this area. Adding to this agreement, agreement with Asociación Wellness Costa Rica in mid- ICT engaged the services of the Costa Rican Institute of 2018. The agreement outlined nine goals, including the Technical Standards (INTECO) on to develop a national implementation of activities that seek domestic and standard that set out the service requirements that international recognition of Costa Rica as a wellness wellness spas must to be accredited.171 destination. It also aimed to manage training, provide 5. Leveraging increased interest in Eco and on communities, helping improve local benefit and Adventure tourism172 involve local women youth through agri-tourism, local The adventure tourism segment is valued as at least US$420 gastronomy, village tours and community-based activities. billion, about 30 percent of the US$1.4 trillion global 6. Building inter-regional travel with outbound travel market.173 It also provides higher yield sustainable yachting per tourist than other market segments. Research from the World Bank, USAID, and ATTA found that generating The yachting industry constitutes a major but often US$10,000 in a local economy takes approximately 96 undervalued source revenue deriving from the coastal cruise-tourists, 9 package tourists, or 4 nature travelers.174 and marine assets. A 2019 study in four Caribbean Another recent World Bank Group consumer market islands found that yacht arrivals only represented 7 research survey identified the Spontaneous Adventurers as percent of total visitor arrivals, but estimated expenditure the highest spending market segment among other four, represented 22 percent of the total (US$584.5 million). with an average US$5,742 spent per trip and being willing Similar trends have been noted in the Pacific: in 2019, Fiji to spend more for good experiences and luxury. received 6,697 yacht arrivals, and yacht visitor spending Thanks to their strong natural assets, SIDS have a huge was estimated at $16.3 million or $2,438 per person (in potential to capitalize on adventure tourism but lack contrast with the average $1,560 receipts per visitor in competitiveness for the segment. As per the Adventure that year).176 Travel Trade Association Index, no SIDS-destination is among the top-40 global destinations in terms of this The yachting sector is often closely related to the highly segment competitiveness,175 even though they could be profitable sport-fishing,177 and both segments need careful well positioned to foster coastal activities such as diving environmental consideration and to be sustainable. and snorkeling. For that to happen, there is a need to Marinas should consider impact on delicate seagrass beds improve and expand certification and skills of operators, and community benefits.178 Recreational fishing of trophy as well as digitalization and technology adoption by species such as marlin, sailfish and bullfish need close service providers that facilitate distribution channels monitoring to ensure safe catch and release and reduce for the segment. Adventure tourism can also be focused poaching of these iconic species. 169 Global Wellness Institute (2018). op. cit. 170 Travel Agents Selling the Caribbean (2020). op. cit. 171 Instituto Costarricense de Turismo (n.d.). Wellness tourism receives a major boost from ICT with the signing of an agreement and adoption of a spa regulation. Retrieved from https://www.ict.go.cr/en/featured-news/1281-wellness-tourism-receives-a-major-boost-from-ict-with-the-signing-of-an-agreement-and-adoption-of-a-spa- regulation.html 172 For definitions see glossary 173 Adventure Travel Trade Association (2021). Adventure Travel Overview and Market Sizing. Retrieved from https://learn.adventuretravel.biz/research/adventure-travel- overview-and-market-sizing 174 Adventure Travel Trade Association (2021). op. cit. 175 Adventure Travel Trade Association and George Washington University (2020)., Adventure Tourism Development Index 2020. Retrieved from https://learn.adventuretravel. biz/research/2020-adventure-tourism-development-index 176 ADB (2021). Looking Forward Vol. 1 Evaluating the Challenges for Pacific Tourism after COVID-19. 177 Globally, billfish support a vast and highly capitalized tourism sector valued at some USD 70 billion per year creating 450,000 jobs. Approximately 11 million Americans participate in this activity. 178 See for example, IGY Marinas community service initiative. https://www.caribjournal.com/2015/12/17/how-these-caribbean-marinas-are-serving-their-communities/ Page 45 Destination-wide coordination is crucial to leverage the the risk of environmental and social issues such as sex yachting potential and ensure registration fees are paid, tourism. Small vessels can provide more educational and as yacht routes are constructed between islands and require higher value tours and ten to have proportionally smaller anchorages, customs and immigration arrangements, negative environmental and social impacts. For small shipping forecasts and coastguard protection. COVID-19 islands, and highly seasonal destinations these can be a has added additional complications to already complex helpful additional accommodation to reduce the strain on process of entry protocols for each country. Destinations local amenities. In addition, by visiting different locations, in the Caribbean made some progress in this area with a small cruise ships can support outer islands that do not customs and immigration system called SailClear.179 These traditionally benefit from tourism and do not have land- are worthwhile investments as yachting can provide a based facilities. high economic contribution, both in terms of direct visitor expenditure and indirect creation of local employment. Core Sector Enablers The growth of the sector also provides an economic Critical to tourism sector development in SIDS are rationale for blue economy investments such as marine enhancements in coordination, connectivity, digitalization, protected areas.180 These in turn positively impact diving conservation, and capacity. For sustainable and high and snorkeling tourism, which when sustainably managed value tourism to grow, these policy areas need to be can promote a transition to blue tourism in SIDS. strengthened to address the underlying constraints and challenges specific to SIDS. 7. Capturing higher value from cruise passengers Coordination SIDS also need to increase value captured from traditional markets like cruise. A recent study in Fiji, for example, For tourism to be part of a blue economy approach, found 24 percent of cruise passengers did not spend at cross-sector coordination is critical. Tourism needs to be all and 47 percent cited unmet spending opportunities.181 considered not as a discrete area but in connection with Areas such as handicrafts, clothing, tours and excursions, sustainable fisheries, agribusiness, transport, and rural and food and beverage presenting the strongest development. This is particularly important to allow for opportunities to capitalize. While industry sentiment growth of new segments of the market which go beyond surveys suggest a decrease in importance of cruise tourism, traditional sun and sea. For example, health and wellness cumulative advance bookings for 2022 and 2023 point to tourism requires coordination with health authorities, a faster than expected recovery.182 yachting requires coordination with maritime transport, Critical to increase benefit capture and reduce and agricultural supply chains depend on functioning environmental costs are an increased length of stay, greater producer organizations and logistics. Public-private diversity of ship size allowing more ports to participate, an coordination is particularly important to agree on new increase in fly-cruise models that start from a destination, marketing strategies, investment priorities and crisis development of handicraft offering, improving experiences action plans. in destinations and the attraction of environmentally Connectivity responsible small vessels. Studies have shown that an increase in dwell time in the destination increases spend COVID-19 exacerbated already difficult inter-island per cruise visitor. Developing additional attractions that transport. Expanding connectivity between the Caribbean appeal to the market and spread visitors throughout and new source markets and destinations is essential the destination can also increase the economic value of to reduce dependency from traditional ones. Critical cruise. Improved coordination between governments and challenges remain the economic viability of providing port authorities is also needed to improve to increase services to small populations, where tourism is seasonal. bargaining power of destinations over cruise lines.183 Caribbean destinations have long subsidized cruise and As with yachting, close monitoring will be needed to airlines to stop at their destination but with reduced ensure sustainable development of cruise and reduce demand these subsidies may need to be re-negotiated. 179 SailClear is an optional service available for use by yachts and other pleasure craft operators who wish to submit their Customs declarations in the form of electronic notifications, prior to arrival in countries where the system is available. https://www.sailclear.com/index 180 World Bank Group (forthcoming). Assessing the Economic Impact of Protected Areas on Local Economies in Fiji. 181 IFC (2019). Assessment of the Economic Impact of Cruise Tourism in Fiji, International Finance Corporation, Washington, D.C. 182 For the first half of 2022 for Carnival Cruises are within range and even ahead of 2019’s bookings for the same period 183 Santos, M., Radicchi, E., Zagnoli, P. (2019). “Port’s Role as a Determinant of Cruise Destination Socio-Economic Sustainability, Sustainability”. MDPI, Basel. Available at https://www.mdpi.com/2071-1050/11/17/4542 Page 46 Digitalization but often low growth and lack of technology, and internet usage levels account for just 69.63 percent of the population Given the cross-cutting nature of both the tourism on average.185 Recent World Bank research has identified industry and digital transformation initiatives, actions to address digital transformation constraints should begin an amalgamation of factors holding back businesses and with strong leadership and coordination. Since ministries destination investment in technology adoption, among of tourism often face a mismatch of regulatory purview which we find lack of standards in digital education and – that is, they do not have authority over the regulations low consideration for industry specific needs; and training, that impact the industry – a whole of government such as the mismatch in training content and format for approach to digitalization strategy development is needed tourism businesses, especially SMEs.186 along with a strong private sector dialogue mechanism. High educational outcomes in the region have not Digital skills programs will be necessary and should focus translated into development of the skills needed in the on understanding and meeting the specific gaps in the digital era. Traditional education institutions in the region industry as well as building digital capacity within the are not producing enough graduates with the workforce- government. Given the pace of development of technology, ready technical and “soft” skillsets in growing demand skills development programs should focus on networking from digitally enabled industries and much of the top and mentoring versus static courses. Policies updates talent developed leaves the islands to pursue opportunities in the space should carefully consider anticompetitive in the larger regional markets or globally. According to behavior, personal data mobility, interoperability and a World Bank-LinkedIn Report on skills and migration standards, equitable access to data, and transparency. patterns, there is a migration of skilled talent out of the Finally, establishing the business case for investment in LCR region, which is a possible indication of mismatch digital is a critical step for firm level digital transformation. between firms and workers in the region.187 The high Given the fragmented customer journey, the return on costs of investment in specialized digital skills is also a investment in digital is not always clear and leadership challenge, suggesting that a regional approach is needed to should help industry understand the potential return on share costs and expertise to create a pool of digital talent digital investments. to attract investment and support technology adoption by Conservation traditional industries. Capturing new market segments like yachting and diving Tools to Inform the Transition: the Blue Tourism requires greater consideration of marine conservation, Resource Portal expanded no-take zones and protected areas, and enhanced management of marine resources. The pandemic has put The Blue Tourism Resource Portal is an information a spotlight on new financing instruments like payment database and e-library that has been developed to facilitate for ecosystem services, debt for nature swaps, and using knowledge transfer amongst and between SIDS. The blue bonds to crowd-in private sector funding and Resource Portal was validated through consultations on nature-based solutions for climate change adaptation.184 the information and knowledge needs of three countries: These were discussed in Box 3. The Gambia (mature, tourism-dependent destination), Cabo Verde (growing small island destination), and São Capacity Tomé and Príncipe (emerging tourism SIDS). These West Increasing quality of services and digitalization requires African countries were selected by the World Bank due capacity upgrading to meet international standards in to their different stages of development as destinations, safety, service-delivery, environmental management, and geographical proximity, and demand from upcoming governance. For example, in the Caribbean, more than 85 World Bank Group tourism operations. West Africa is percent of all businesses in tourism are small and under- also particularly under-researched in the context of SIDS capitalized. There is a high degree of female ownership and tourism.188 184 World Bank Group (2021). Riding the Blue Wave: Applying the Blue Economy Approach to World Bank Operations, World Bank, Washington, D.C. Retrieved from: https://openknowledge.worldbank.org/handle/10986/37212 185 World Bank Group. World Development Indicators. Retrieved from https://datatopics.worldbank.org/world-development-indicators/ Data last updated on Feb 15, 2022. Numbers from last available year from 19 Caribbean countries. 186 World Bank Group, January 2022. Mapping of Digital Along the Value Chain. 187 Zhu et. Al., 2019. Jobs, skills and migration trends methodology & validation results. World Bank Group, LinkedIn. Retrieved from: https://documents1.worldbank.org/ curated/en/827991542143093021/pdf/World-Bank-Group-LinkedIn-Data-Insights-Jobs-Skills-and-Migration-Trends-Methodology-and-Validation-Results.pdf 188 The information needs for blue tourism in each country were assessed based on review of existing knowledge and data, interviews with World Bank representatives in the three countries. These were then compared with available information in the Blue Tourism Inventory in order to assess its usefulness and gaps in knowledge for these case studies. Page 47 Country consultations found common information needs, other SIDS that have already established successful including the harmonization of policy and regulatory innovative approaches that could be transferred frameworks; training resources for accommodation and upscaled locally, or the credible institutions and properties; rationalizing the roles and responsibilities practitioners that can provide specific resources or of tourism bodies; affordable and widespread data trainings. connectivity; value chain linkages in the local economy; • How to access financial resources to assess and water and waste management; coastal infrastructure implement new sustainability measures, or strengthen development; and tools to help manage large volumes of those that are emerging? visitors. While many documents within the Blue Tourism Resource Portal address these areas, a number of gaps • When different measures should be applied, and emerged for further work and information detailed at the which are the most urgent to apply first in their end of this report. COVID-19 recovery? Specifically, our research found common key questions The Blue Tourism Resource Portal has been developed asked by policy makers: to address some of these needs. The Portal provides a central location for easy access to the information on • Which approaches are the most effective, with a blue economy issues related to tourism —including short-list of the most effective, cost-and human- on sustainable tourism and COVID-19 responses— in resource efficient approaches, with the best returns the form of research, tools and toolkits, principles and on investment, and which can be implemented with policies, networks, and resource platforms. The Portal the resources they have locally? is organized around five main themes in terms of • Who can provide them with sound technical advice, their technical focus: management, socio-economic, and guide them through the process? This may include environment, culture, and health. Figure 22. Categories of Tools and Resources in the Blue Tourism Inventory MANAGEMENT SOCIOECONOMIC CULTURE Organization and coordination Social and economic needs and Tourism development and of activities in order to achieve opportunities of destinations, management of or relating to a defined objectives businesses and communities particular group of people and their habits, beliefs, and traditions ENVIRONMENT HEALTH Conservation, utilization and Support destinations, businesses protection of the natural and communities navigate health- environment related challenges Hub resources are also organized by the related SDGs Annex 3 contains examples of some of the important and against the Global Sustainable Tourism Council resources available to SIDS on the Hub based on priority Criteria (GSTC Criteria). The resources include knowledge needs identified by stakeholders in three pilot legislation and regulation; training resources; support countries. Annex 4 includes a list of other useful tool, for the community; clean water and sanitation; resources, and compilations of case studies which a infrastructure and facilities; and resources to help specific focus on promoting sustainability. manage large volumes of visitors (visitor management). Page 48 While the inventory identified numerous resources with original publishers and authors including the in each of the thematic areas, information gaps were dominant official languages of specific SIDS. identified in the following areas: Filling the Gaps: Research and Operations • Tools and toolkits: A lack of economic monitoring and evaluation tools. The pandemic put a spotlight on the challenges facing SIDS and small tourism-dependent nations. The global climate • Principles and policies: Few common policies or emergency, loss of the ecosystems the sector depends strategies were identified for socio-economic or on, clean water supply and access, growing inequality, COVID-19 recovery, all were country specific. Also and supply chain gaps are all real and imminent threats missing was systematic assessment of the impact of to the tourism sector and need to be tackled now and different policies on SIDS tourism outcomes collectively. By defining common research and technical • Management resources: Gaps were found in assistance priorities and gaps for SIDS and small tourism management related resources for technology and dependent coastal nations, development institutions, data, marketing and promotion, interpretation academic and development practitioners can hone their and communications and visitor and customer future support to countries and industries and align future satisfaction. research agendas with stakeholder needs. • Socio-economic resources: Few resources include As efforts are made to ‘build back bluer’ tourism sectors, knowledge around local purchases and fair trade, close monitoring will be needed of those policies that work and careers, mobility/access to all, human contribute to improved community outcomes and those rights, and gender. that fail. Expanding economic monitoring beyond visitor spending and GDP inputs to incorporate the full • Culture resources: Resources and tools related to range of economic and environmental costs of tourism traditional access, authentic culture and heritage, development will be critical. exhibits and shows, and intellectual property. Whilst the basic principles of a successful tourism • Environmental resources: Food and environmental ecosystem remain the same as before COVID-19, the management, sub-categories of wastewater and importance of issues such as health and safety, thriving harmful substances, solid waste, and light and noise local supply chains, environmental impacts and public- pollution were under-represented. private dialogue have been emphasized by the pandemic. • Geographic focus: Regionally, there are more New tourism operations will need to consider how to materials established for Africa and the Caribbean affect change in the five critical enablers: coordination, than other regions (e.g., Pacific, Mediterranean, connectivity, digitization, conservation, and capacity. Central America, and Antarctic). New tourism operations will also need to put green and resilience first, be informed by new market research, • Language: Most resources are available in English. and identify policies that can fast track a blue tourism The identification of more non-English resource transition. This Guidance Note and accompanying Blue tools through tourism practitioners working in Tourism Resource Portal are a first step towards a toolkit other languages, with French, Portuguese, Spanish for next generation tourism projects. and Dutch as priorities. Translation of key resources needed in different languages could be organized We welcome your feedback via tourism@worldbank.org Figure 23. Green, Resilient, Inclusive Development (GRID) Framework for Tourism Intervention Build Competitive and Promote Green & Resilient Create Inclusive Value Chains Productive Tourism Markets Tourism • Improve access to finance • Implement sector resilience and • Strengthen local value chains • Stimulate entrepreneurship crisis management • Address informality • Update policy, legal and • Plan for and act on climate change • Reduce barriers for women regulatory environment including • Strengthen circular economy • Foster Tourism SME linkages on reopening opportunities • Empower subnational Tourism • Improve business enabling • Increase sustainability measures institutes environment and certifications • Promote digitalization • Strengthen institutional capacity • Pursue diversification • Ensure stakeholder involvement • Facilitate market access and • Alignment of Tourism policy laws and empowerment demand stimulation and regulations for sustainability • Enable investment promotion • Effective Tourism and site planning, and planning development and management • Enable sustainable financing Source: The World Bank Page 49 Annexes Bahamas Page 50 Annex 1. List of SIDS UN Members ATG Antigua and Barbuda FSM Federated States of Micronesia BHS Bahamas MUS Mauritius BHR Bahrain NRU Nauru BRB Barbados PLW Palau BLZ Belize PNG Papua New Guinea CPV Cabo Verde WSM Samoa COM Comoros* STP São Tomé and Príncipe* CUB Cuba SGP Singapore DMA Dominica KNA St. Kitts and Nevis DOM Dominican Republic LCA St. Lucia FJI Fiji VCT St. Vincent and the Grenadines GRD Grenada SYC Seychelles GNB Guinea-Bissau* SLB Solomon Islands* GUY Guyana SUR Suriname HTI Haiti* TLS Timor-Leste* JAM Jamaica TON Tonga KIR Kiribati* TTO Trinidad and Tobago MDV Maldives TUV Tuvalu* MHL Marshall Islands VUT Vanuatu * Also Least Developed Country Non-UN Members/Associate Members of the Regional Commissions ASM American Samoa GLP Guadeloupe AIA Anguilla GUM Guam ABW Aruba MTQ Martinique BMU Bermuda MSR Montserrat VGB British Virgin Islands NCL New Caledonia CYM Cayman Islands NIU Niue MNP Commonwealth of Northern Marianas PRI Puerto Rico COK Cook Islands SXM Sint Maarten CUW Curacao TCA Turks and Caicos Islands PYF French Polynesia VIR U.S. Virgin Islands Page 51 Annex 2. Examples of Sequenced Pandemic Responses Supporting Tourism Sector Recovery Short Term Responses Prioritize public health during pandemic Standardized global health and safety protocols across all industries and geographies to facilitate safe travel Worker health protections, including with personal protective equipment (PPE) equipment International testing protocols for before departure tests and standardized quarantine procedures Mitigate socio-economic impacts of the crisis Jobs and wages: Unemployment benefits, salary subsidies, and/or livelihood support for workers Job retention schemes (employment, wage assistance support and furlough schemes) Subsidize training for tourism workers Credit and financing: Direct financial support (grants / subsidies) Banks extending credit, working capital, and deferring/reducing debt servicing obligations Debt finance guarantees Investment incentives to reduce the cost of capital Taxation: Tax payment deferrals or extended payment plans, reduction or deferments of licensing and inspection fees Property tax rebates or payment deferrals for hotels, concessionaires, and others Travel Incentives: Offer promotions, more affordable products, and incentivize domestic and international travel, form of vouchers, fiscal incentives or moving bank holidays to create long weekends Cancellation refunds to enable flexible changes and the waiving of pandemic-related change fees Provision and purchase of travel insurance that includes COVID-19 coverage Data Collection: Execute a business pulse survey to assess the need of the tourism private sector Improve data collection and support background analytical work to identify future market demand and new product development Foster partnerships to responsibly ease/lift travel restrictions Boost international coordination among governments to re-establish effective operations and resume international travel Adopt a coordinated approach to re-open borders and international standard reporting on risk assessments Engage in horizontal and vertical policy coordination and engagement with the private sector Strengthen coordination of public and private sector collaboration Consider the implementation of international ‘air corridors’ between countries or cities with similar epidemiological situations Page 52 Medium Term Responses Build resilience across the tourism sector Invest in crisis preparedness and health facilities to equip the sector to respond to future risks or shocks Establish a crisis escrow account for rapid communication response for the next crisis Policy and Regulations: Legal adjustments to firms (Insolvency/ bankruptcy support) Review existing regulations and legal frameworks to ensure that they are adapted to the changed requirements of the sector to facilitate recovery and post-COVID-19 growth Tackle structural changes that can increase formality and enable improved competitiveness Infrastructure: Upgrade infrastructure including digital connectivity including making resilient to climate change Repurpose tourism assets for crisis operations (e.g., hotels as quarantine or medical centers) Business innovation: Incentivize business expansion, digitization, and entrepreneurship Develop capacity building and training programs to retrain tourism workers and empower them with the essential digital skills Assist informal businesses to get registered where possible. Tourism product & marketing: Track and respond to new market segments in nature, adventure, culture and wellness to boost domestic and international tourism Relaunch destinations through ‘back in business’ augmented promotion to key source markets. Identify target markets that are more resilient and come back sooner, and ensuring attractive pricing, products, and access. Provide consistent, simple, and coordinated communication to citizens and travelers via a communications campaign Maximize technology, with innovation and digital skills Create new opportunities including innovation, technologies and digitization and use of digital platforms Develop and adopt innovative and digital technologies that enable seamless travel, better manage visitor flows, and improve traveler experience while making it safer. Longer Term Sustainability Roadmap Promote sustainability and green growth Reinforce sustainability practices, working in partnership with local communities and accelerating sustainable agendas where possible. Mainstream gender and sustainable policies and practices Support sector sustainability through resource efficiency and resiliency related to climate change Climate change mitigation and adaptation Monitor and report CO2 emissions from tourism operations Accelerate the decarbonization of tourism operations Invest in climate change adaptation strategies using nature-based solutions to reduce erosion and prevent flooding. Page 53 Social inclusion Build skills and develop infrastructure needed to facilitate agro-/fisheries tourism linkages and blue value chains Strength local community capacity to participate in value chains in the fisheries and agri sector, particularly women and youth Work with larger hotels, cruise lines and resorts on import substitution where feasible to improve local procurement and supply chains Conservation Invest in innovative conservation financing, insurances, debt-for-nature swaps and blue bonds to increase sustainability and reduce dependence on tourism Invest in nature-based solutions for sustainable tourism Establish coastal-Marine Managed Areas (MMAs) and/or Locally Managed Marine Areas (LMMAs) with the communities Define zoning policies to assure sustainable development, particularly in areas of natural and cultural heritage sites Direct public investment into conservation jobs Circular economy Invest in innovation around circular business models including energy efficiency, waste reduction, water reuse and food waste composting Prioritize sustainable food approaches for circularity with training, guidelines and incentives Shift towards a circularity of plastics, energy, and water in tourism Fiji Page 54 Annex 3. SIDS Knowledge Priorities and Examples of Knowledge Hub Resources Policies and Strategies: SIDS Knowledge Needs • Integration of sustainable tourism in policies and strategies with issues of environment, climate change, disaster risks, sustainability, etc. • Rationalization of regulatory framework procedures for tourism (i.e., policy harmonization, removal of incongruent/unhelpful protocols, gap analysis & filling them) • Harmonization of laws/regulations on ocean use (e.g., tourism, fishing, mining) • Zoning and land-use, marine spatial planning and coastal resource planning for tourism development that is compatible with citizens’ needs (e.g., housing, sanitation, education, infrastructure, food production) Examples of Resources in the Hub • Policies and strategies: Building back post pandemic is a good time to updated policies and improve environmental regulations. A World Bank and United Nations report on The potential of the blue economy: Increasing long-term benefits of the sustainable use of marine resources for Small Island Developing States and Coastal Least Developed Countries (2017) proposes policies for better screening and control of the investments to ensure their sustainability, in order to avoid negative environmental impacts of unsustainable investments in coastal and maritime tourism operations such as waste disposal, marine litter and pollution, physical alteration of coastlines and landscapes, coastal erosion and the disruption in the balance of land-sea connections.189 • Legal and regulatory framework: Environmental legislation is complicated by the difficulties of enforcement and compliance. The research paper on Achieving blue economy goals: The need for improved legal frameworks across the Indian Ocean (2019) illustrates how domestic marine environmental laws are not comprehensive, nor cohesive across the Indian Ocean region, and relevant rules are scattered across a range of laws, regulations, policy documents and soft law instruments. Marine spatial planning (MSP) offers opportunities for enhanced governance, but no Indian Ocean States have effective MSP laws.190 • Sectoral coastal tourism policies and regulations are essential to provide a clear frame for sustainability requirements. In Thailand the government stepped in to minimize damage from pre-pandemic overtourism, with island and beach closures. However, such closures are unsustainable long-term solutions, and the paper highlights the limited administrative capacity and / or expertise of policymakers to implement sound policies and to set up a sustainable investment strategies based on the economic resources already available.191 189 World Bank and United Nations Department of Economic and Social Affairs (2017). op. cit. 190 Techera, E. (2019). op. cit. 191 European Commission (n.d.) op. cit. Page 55 Destination Management: SIDS Knowledge Needs • Clarifying and rationalizing roles/responsibilities and improving coordination of tourism bodies (e.g. tourism boards, private sector associations, public sector departments etc.) • Marketing and promotion of destinations/the country on limited budgets in public resources • Managing large volumes of cruise-ship tourists in small destinations (e.g. traffic, overcrowding) • Establishing realistic numbers (limits of acceptable change) to avoid overcrowding from cruise-ship tourists at excursion sites • Erosion control (related to climate change) shipping and port dredging • Vulnerability to climate change and natural disasters (e.g. severe weather events, flooding) • Health and sanitation requirements for citizens/tourists – re-opening safely • Ensuring data packages are cheap and connectivity coverage, and access Examples of Resources in the Hub • Planning and management: The research paper Sustainable coastal tourism: problems and management options (2012) recommends that coastal tourism destinations should include participatory processes to integrate the needs of all level of coastal zone stakeholders in sustainable management plans, considering environmental, socio- economic, and cultural dimensions.192 193 • User fees as sustainable financing mechanisms for marine protected areas: An application to the Bonaire Marine Park (2010) is a research paper that explains how willingness-to-pay studies can be used to establish market rates charged to park visitors in marine protected areas. • Tourism taxes by design (2020), produced by the Destination Sustainability Movement for Europe which offers a synopsis of the current landscape of tourism taxation and insights into the regulatory and regenerative motivations behind the design and governance of taxes. It also explores roles that taxes might play in shaping a future of more sustainable tourism and enabling destinations to withstand future shocks. Policy recommendations include for (a) destinations reinvest tax revenues either for general tourism promotion or for regenerative purposes beyond tourism, (b) Local and democratic governance and distribution of funds adds to the legitimacy of the tax and collaborative capability of the destination and (c) Destinations and accommodation providers must be open and upfront about the tax and ideally what it will be used for, and they are often well received with consumers if a modest contribution is used for purposeful and regenerative activities • UNWTO’s Compendium of best practices and recommendations for ecotourism in Asia and the Pacific (2012) provides specific case studies demonstrating ecotourism in practice and illustrates how tourism operators are aiming to meet the principles of sustainable tourism. The volume is directed towards government institutions, private companies and individuals involved in the ecotourism sector as well as those concerned more broadly with the environmental, social and economic sustainability of tourism organizations. 192 The coastal stakeholders include the local community (including the people engaged in non-tourism coastal practices like fishing, aquaculture and agriculture or any other occupation), tourists, the coastal tourism labor force, local and foreign investors and developers, government and non-government organizations. 193 Ghosh, T. (2012). “Sustainable coastal tourism: problems and management options, Journal of Geography and Geology”. April 2012. Available at https://www. researchgate.net/publication/228464641_Sustainable_Coastal_Tourism_Problems_and_Management_Options (Accessed: 3 June 2021). Page 56 Socio-economic Category: SIDS Knowledge Needs • Training/capacity development to establish certifications • Capacity development tool for DMOs (for establishment & operation) • Training/capacity development for marketing plans, online marketing • Capacity development/awareness raising on sustainable tourism and its challenges, including for communities • Community-based tourism (CBT) establishment that is commercially viable in the long term (e.g. homestays, community tours, local guides) including capacity development/training etc. • CSR of major capital investment in tourism (e.g. helping local schools, hospitals) as NGOs might usually • Encouraging tourism operators to buy locally (where available) rather than imported produce to reduce reliance on imports (and associated packaging) Examples of Resources in the Hub • Social License to Operate and the Blue Economy (2017), a World Ocean Council report that summarizes the outcomes of a workshop on social license implications for the Blue Economy conducted at the Sustainable Ocean Summit in 2017. • Involving communities in tourism development (2017) shares several trial examples from Croatia, intended to strengthen relationships between the tourism sector and local communities by taking a more inclusive approach to tourism development. • The role of private sector ecotourism in local socio-economic development in southern Africa (2017) looks at the role of private sector stakeholders in local ecotourism development in southern Africa. Recommendations are put forward as to how the private sector can further effect positive change in the areas where it is operating and ensure long-term sustainability. • Ocean Solutions that Benefit People, Nature and the Economy (2020) showcases a balanced model that simultaneously achieves effective ocean protection, sustainable production and equitable prosperity. The report builds on the latest scientific research, analyses and debates from around the world—including the insights from 16 Blue Papers and 3 special reports commissioned by the Ocean Panel. Page 57 Environment Category: SIDS Knowledge Needs • Coastal erosion control, information/technologies, nature-based solutions • Reducing water use among tourists and hotels (e.g. tourists using 5x more water than locals – 900 liters per day -, and water is desalinated, which is energy intensive & produces waste) • Sustainable fishing practices that supply restaurants and service tourists • Preventing/prohibiting pollution from cruise ships (i.e. bilge, sewage, oil, solids) • Environmentally friendly development, circular business models and safeguards integrated into zoning, siting, design and construction • Coastal tourism development for sustainability and resilience (i.e. avoid destruction natural resources) • Port/jetty facilities for cruise ships and other vessels that do not damage reefs or interfere with cargo traffic • Small ports/docks for shallower waters and more sensitive areas Examples of Resources in the Hub • Tools and resources for implementing the Global Tourism Plastics Initiative (2020), established under the United Nation’s One Planet program. This is a repository of tools has been established to support Signatories of the Global Tourism Plastics Initiative to implement commitments on elimination of single-use plastics, introduction of reusable models, engagement and collaboration with value chain stakeholders, as well as at enabling additional tourism businesses and organizations to take action on plastic pollution. The tools and resources have been organized in groups including “Reports on plastics legislation and regulations.” • The Legislative guide for the regulation of single-use plastic products (2020) from UNEP and the WRI is intended to be a practical tool for those working to develop laws and regulations to limit or manage single-use plastic products. provides guidance on how to develop legislation on single-use plastic products, outlines the main regulatory alternatives, and suggests the key elements that each should include. It also provides guidance on the writing of clear and comprehensive laws and suggests key policy and drafting considerations. The guide gives examples of provisions from existing laws regulating single-use plastic products and more detailed information in the form of national case studies.194 • The plastics landscape: regulations, policies and influencers (2019) from UNEP Finance Initiative and UN Global Compact. This resource describes various plastic-related regulations coming into force at different stages of the value chain and highlights the types of movements that influence how plastic is regulated, managed and used. • Reducing Caribbean risk: Opportunities for cost-effective mangrove restoration and insurance (undated) explores how trust funds can be used to provide insurance against catastrophes, including the example of an insurance product established by The Nature Conservancy in Quintana Roo, Mexico. The paper explains how they established a parametric insurance product to help maintain coral reefs and beaches along over 160 km of the coast. • Sustainable Travel international’s case study on Palau: Carbon neutral tourism destination (2020) showcases efforts aiming to help the archipelago become the world’s first carbon neutral destination, by increasing local food security; empowering women to fully participate in the tourism value chain; conserving coastal ecosystems that act as carbon sinks; and neutralizing tourism’s carbon footprint. 194 UNEP (2020). Tackling plastic pollution: Legislative guide for the regulation of single-use plastic products, Available at: https://wedocs.unep.org/bitstream/ handle/20.500.11822/34570/PlastPoll.pdf?sequence=3&isAllowed=y (Accessed: 2 June 2021). Page 58 Annex 4. Further Resources & Toolkits for Blue Tourism in SIDS • The handbook for sustainable tourism practitioners by the Convention on Biological Diversity (CBD), (2021): A book from Edward Elgar that offers these guidelines provide information to support how-to tools and step-by-step guidance to outline protected area authorities to achieve sustainable best practice in undertaking environmental, socio- tourism operations in their protected areas; to cultural and economic assessments that establish the bring benefits to conservation and other purposes feasibility of new tourism ventures and ascertains for which the protected area has been declared; and their impact over time. Chapters cover fundamentals to avoid or mitigate negative impacts. They aim to including how to develop a theory of change, assist protected area authorities in their development conduct feasibility studies and business plans, and and use of tourism partnerships and concessioning address key topics such as visitor management and to contribute financially and technically to protected overcrowding. areas through sustainable tourism. • Tourism and visitor management in protected • Managing tourism and biodiversity (undated): This areas (2018): An IUCN best practice guideline that tool is intended for Parties to the CBD and other provide information on key issues to help managers stakeholders to apply the Guidelines, and to make achieve sustainable tourism in protected areas, tourism more biodiversity-friendly, considering including information on the impacts of protected the three objectives of the Convention—the area tourism; guidance on 10 guiding principles conservation and sustainable use of biodiversity, for adaptive management; capacity building; and the fair and equitable sharing of the benefits and managing tourism revenues for conservation arising from the use of biological resources. It benefits. incorporates guidance on participatory planning; • Sustainable tourism implementation: Framework collecting baseline information; establishing visions, and toolkit (2021): This European Travel goals and objectives; legislation and control; impact Commission handbook has been produced to assessment, management and mitigation; decision support European National Tourism Organizations making; implementation, monitoring and reporting; (NTOs) efforts to develop national approaches adaptive management; education, capacity building that advance sustainable tourism. It is intended as and awareness raising, and a series of checklists to a practical document to aid implementation, for all guide managers. European nations regardless of where they are on • Linking communities, tourism and conservation: their sustainability journey. A tourism assessment process (2005): Produced • Coral reefs: Tourism, conservation and management by Conservation International and The George (2018): This book provides an example of a guideline Washington university, this resource is for field and good practice, a curated resource, and includes practitioners to perform a rapid assessment and case studies. It incorporates coral reef science, analysis of tourism potential in a destination. It management, conservation and tourism perspectives incorporates sustainability concepts that aim to and takes a global perspective of coral reef tourism optimize tourism development in an effort to protect issues covering many of the world’s most significant natural and socio-cultural resources and improve the coral reef destinations. welfare of local people, while enhancing monetary • CREST toolkit – with recommended actions gains and market access. This hands-on manual is for creating a sustainable tourism destination also a tool for practitioners engaged in applying (undated): Written for representatives of four islands tourism as a strategy for biodiversity conservation and a coastal town in the North Sea region, this and poverty reduction. toolkit outlines what makes tourism destinations • The UK marine monitoring & evaluation assessment sustainable, and outlines key economic, social, strategy (undated): An M&E tool from CEFAS environmental, quality and transport issues. that provides a framework for delivering marine • Guidelines for tourism partnerships and concessions policy at the UK level and sets out how to achieve for protected areas: Generating sustainable revenues a sustainable ocean via a marine assessment tool, it for conservation and development (2017): Published includes an online assessment tool. Back cover image: Mauritius Page 59 Tourism for Development Rebuilding Tourism Competitiveness: from Crisis to Sustainability For more information, email us at tourism@worldbankgroup.org Engage with us on social media at #tourism4dev