Transcript powerpoint slide

How to Finance Community Projects:
The View from an International institution
The case of
Caribbean Small Tourism Enterprises
Project – STEP
An OAS/USAID Project
May 24, 2003
Presentation
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Introduction
– Creativity & enterprise
– Quality, standards, value
– Profitability and sustainability
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Sustainability – the case of STEP Program
– Product improvement
– Marketing
– Finance
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What do Funding Institutions Expect ?
Creativity & Enterprise
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Building on community values
– Pride of place
– Key messages – historical & contemporary practices
– People based
Must know what the “new” customer is looking
for
 Partnering is critical
 Involving the community at all levels
 Using your Jamaican creativity
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Quality, Standards & Value
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Market expectations
– Authentic experiences
But
– With quality in terms of hospitality, facilities
and safe practices
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Travel trade demands it
– Liability issues, value issues
– They need a satisfied customer
Sustainability Always a
Challenge
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Constraints to Sustainability
– Standards, Training & HRD
– Market access
– Access to financing
STEP Program one example - designed to
overcome constraints
STEP Program
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Antigua & Barbuda
Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Jamaica
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St. Lucia
St. Kitts & Nevis
St. Vincent & the
Grenadines
Suriname
Trinidad & Tobago
Dominican Republic
(Observer)
Helping the Small Tourism Sector
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Who are they?
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Small hotels
– 75 rooms or less
– 1,500 properties in 14
countries with 36,000 rooms
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Other Small Tourism
Enterprises
– Sites, Attractions, Services
and Community Tourism
Products
Conceptual Approach
Small Hotel
Properties
Sites, Attractions
& Events
Regional Brands
Package Experiences:
(e.g. nature lodges,
plantation inns)
(e.g. small hotel plus nature
tours)
Caribbeanexperiences.com
(Reservations, Call Centre & Destination Information)
Consumer and Travel Trade
How STEP is Delivered
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OAS offices in each
country to support
program
 14 STEP Coordinators for
program delivery
 National public/private
sector working group.
STEP Programs & Tools
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Training to
international standards
– AH&LA, CESO & Net
Corps
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Toolkits
 Environmental Walkthrough program
 Resource centers
Resource Centres
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To Date
– installed in Dominica, Barbados,
Grenada, St. Lucia, St. Kitts,
Trinidad & Tobago, St. Vincent,
Belize, Jamaica and (WalkAbout) Bahamas
– Training materials, video library,
TV/video facility, internet access,
toolkits
– Environmental management
toolkits & CAST information
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In 2003
– 7 more centres including another
two to be installed in Jamaica
Sites, Attractions, Services, and
Community Tourism
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In 2003 STEP began its
focus on Developing
– Standards,
– training (technology,
Management, Guiding etc)
– training materials (Tool
kits, course Materials)
– Certification
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Started in St. Lucia,
Grenada and Barbados
Will start soon in
Jamaica with local
partners
Integrating Sites, Attractions,
Tourism Services & Community
Tourism
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Identifying products that fit the
small hotel market segments
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Nature
Heritage
Culture
Communities
Events, Festivals, Music
Marketing as part of Caribbean
Experiences
– Help with product upgrade
– Packaged with small hotels
– Bring customers, make sales
Marketing:
The Caribbean
Experiences
Caribbeanexperiences™ Brands
& Standards
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Principles behind hotel branding
– Quality standards
– Market presence (no. of rooms in brand)
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Branding system for small hotels in Caribbean
– Experience driven
– Matched to market norms & expectations
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Examples
– Bed & Breakfasts of the Caribbean
– Plantation Inns of the Caribbean
– Nature Lodges of the Caribbean
Corporate Structure
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Non-profit entity
– Modeled generally on largest non-profit hotel
brand – Best Western
– Cooperative ownership by Members
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Start-up initially managed through STEP
organization
 Viability based on member fees,
commissions & training/services fees
Entry Requirements for Hotels
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Must meet the brands and standards requirements
- Assessed and rated
– Independent audit of CE ratings
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Agreement with hotelier on:
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CE brand adherence
Allocation of rooms
EMS walkthrough
Training program participation
Maintenance of financial records
Reporting of performance
Entry Requirements for
attractions
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Must meet the international physical and service standards
– Must be licensed by local agency - TPDCO
– Must be assessed and rated
– Must be rated by Independent auditor
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Agreement with operator/community on:
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Maintenance of quality standards
Health and hygiene and sanitation
Environmental Management System in Place
On-going training and certification for participants
Maintenance of financial records
Reporting of performance
Constant monitoring of satisfaction by visitors
Monitoring of impact on Communities and
timely feedback to operator/community
Caribbean Tourism Investment
Facility
To meet the International Standards:
Financing will be required for:
– product development and upgrade of
sites and communities
– improving and expanding the
properties
– Marketing, promotions and training
Two Product Upgrading Funds
Proposed
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Micro-Enterprise/SME/Credit Union Facility
– Estimated $5-7 million
– Funding range: $10K-$75K per project
– Includes environmental management upgrades
– Incorporate USAID guarantee program as appropriate
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Long-term Debt & Equity Facility
– Estimated $25-50 million
– Funding range: $75K-$5 million per project
Accessing Funds – What do
They Expect?
It is not easy – Must depend on the creativity,
partners and contacts you have nurtured
 A quality product
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– Matched to Market
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Feasibility assessment
– Can it work & be profitable?
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Business Plan
– Who owns and operates the business
– How will it be marketed
– Forecast of income & expenditures
Thank You