3.3.3 Pro-poor Tourism (PPT) (Sustainable tourism)

Question 1

PPT

Answer 1

• Pro-poor tourism (PPT) is an approach to tourism development that focuses on improving the livelihoods of the poor through training and access to micro-finance.
• It aims at generating net benefits (economic, social and environmental) and improving the livelihoods and well-being of the poor.
• Any type of tourism such as CBT and ecotourism can be classified as PPT, as long as they focus on improving the livelihoods of the poor and reducing poverty.
• If an ecotourism project puts in place measures to also target poverty, and generate benefits for the poor, then it can be classified as PPT.
  ———
  Example:
• Villages around China’s Three Parallel Rivers Region, a UNESCO World Natural Heritage Site.
• Tourists are attracted to visit to enjoy the scenic views offered by the mountains and rivers as well as to experience village life.
• With the financial assistance offered by the authorities, many villagers here have set up tourism businesses such as homestays and restaurants.
• Some put up cultural performances for tourists for a living.
• As a result, the local community has experienced an increase in income and standard of living.

Question 2

Strategies used

Answer 2

1. Training
2. Increasing access to micro-finance

Question 3

Training

Answer 3

• With training provided, locals will be able to learn new skills which they can then use to gain employment in the tourism sector.
• For instance, locals can learn how to bring tourists around or how to manage a tourism business.

Question 4

Increasing access to micro-finance

Answer 4

• Enables the poor to set up businesses such as homestays and restaurants, thereby benefiting economically from tourism.
• Communication materials may be designed so that locals are able to understand how they can go about applying for micro-finance.

Question 5

Limitations of PPT

Answer 5

1. The inability to significantly reduce poverty as compared to direct investment in social services.
2. The economic benefits may be highly unevenly distributed, with most of the benefits being channelled to non-poor locals.

Question 6

Inability to to significantly reduce poverty

Answer 6

• It may be difficult to channel benefits to the poor as compared to if there were some direct investment in social services.
• The poor may be reluctant to participate in PPT or may lack the skills, finances and knowledge to establish and sustain their businesses.
  ———
  Example:
• In the tourism destination village of Abr, Iran, PPT has not resulted in significant economic benefits for the poorest locals.
• Many lack the self-confidence to undergo training provided by the authorities.
• Some of the training classes require the participants topay a small fee and many of them refrain from paying as they do not see a bright future for themselves in the industry.
• Hence, many continue to lack the necessary skills to participate in the tourism industry, resulting in low participation among the poor.
• In contrast, the non-poor locals are dominating the training and employment in the local tourism industry.

Question 7

Economic benefits may be highly unevenly distributed

Answer 7

• These non-poor locals may have greater access to micro-financing or financial grants used to support the local tourism industry as they are seen to be more reliable by banks, donors and authorities.
• Hence, the non-poor become wealthier while the poor benefit marginally, widening the income gap between the poor and non-poor.
• Hence, the benefits of PPT may not be substantial enough to significantly improve the lives of the poor.
• This might be more effective if authorities and NGOs choose to prioritise directly providing social services such as education and healthcare.