Project Title

SMEs' Integration into Global Value Chains in Services Industries: Tourism Sector 

Project Year

2017   

Project Number

CTI 20 2017A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CTI 20 2017A 

Project Title

SMEs' Integration into Global Value Chains in Services Industries: Tourism Sector 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Free Trade Area of the Asia-Pacific and Global Value Chains (FTAAP and GVCs) 

Project Year

2017 

Project Session

Session 2 

APEC Funding

50,000 

Co-funding Amount

17,550 

Total Project Value

67,550 

Sponsoring Forum

Committee on Trade and Investment (CTI) 

Topics

Trade Facilitation 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru 

Co-Sponsoring Economies

Australia; Hong Kong, China; Indonesia; Korea; Mexico; Viet Nam 

Expected Start Date

01/12/2017 

Expected Completion Date

31/12/2018 

Project Proponent Name 1

Fabiola Velasquez 

Job Title 1

International Cooperation and Tourism Affairs Coordinator 

Organization 1

Ministry of Foreign Trade and Tourism 

Postal Address 1

Calle Uno Oeste No. 50, Lima 27, Peru 

Telephone 1

51-1 5136100 

Fax 1

Not Applicable 

Email 1

fvelasquezc@mincetur.gob.pe 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Fabiola Velasquez 

Project Summary

The role played by MSMEs is crucial for trade in tourism, nevertheless MSMEs are less able to respond to macroeconomic instability and are vulnerable to being crowed out by larger firms, having limited access to credit and skills.

Furthermore, PSU data demonstrates that tourism development has positive synergies with trade growth, noting that achievement of the APEC target of 800 million tourist arrivals by 2025 could produce an additional USD 3.8 trillion dollars in output in the Tourism Value Chain. In that sense, this project seeks to improve Economies’ capabilities to assist MSMEs to benefit from tourism GVCs, in the framework of the Initiative “SMEs’ Integration into Global Value Chains in Services Industries” endorsed in 2016.

The project will develop of a comprehensive study on structures, main strategies for MSMEs to participate in tourism GVCs, as well as best government practices and policies on facilitating MSMEs access to tourism GVCs.

Relevance

The APEC Policy Support Unit 2016 study “Tourist Arrivals and Inclusive Growth” concluded that achieving 800 million tourist arrivals among APEC economies by 2025 would create an additional 3.8 trillion dollars in output; create additional 21.1 million jobs; and lift additional 15.2 million people out of poverty. These economic impacts on trade growth are often accomplished through MSMEs, including self-enterprise and women-led businesses, Nevertheless, PSU studies show that MSMEs are less able to respond to macroeconomic instability and are vulnerable to being crowed-out by larger firms. In this regard, this project will develop capacity in APEC economies to assist MSMEs to effectively integrate into tourism GVCs.

This project will contribute to implement CTI’s initiative “SMEs’ Integration into Global Value Chains in Services Industries”, developing a research paper to gain a deeper understanding of the challenges faced by MSMEs in the tourism sector and come up with solutions to better promote their integration into GVCs through innovative policy regulations. The project is designed to address this Initiative for 1 of 4 major services industries (tourism), along with 3 other sector leads: Korea (Software), Hong Kong, China (Fashion Design) and Viet Nam (Logistics and distribution). As a joint effort with those sectors, this project seeks to sustainably benefit not only the sector lead economies, but also other APEC economies, by identifying best practice cases and presenting policy recommendations for the tourism industry.

Under the APEC Funding Criteria 2017, this project falls directly underthree Rank 1 criteria on: 

-  Strengthening innovation capacities and competitiveness of MSMEs and MSMEs insertion in GVCs: This project aims to facilitate MSMEs’ integration into GVCs in the tourism industry and build their innovation capacities to successfully compete in this sector value chain.

-  Services trade, including the implementation of the APEC Services Cooperation Framework and APEC Services Competitiveness Roadmap:  This project aims to facilitate MSMEs’ integration into GVCs in key services industries and build their capacity for sustainable and inclusive business growth, accordingly moving forward the achievement of the Services Competitiveness Roadmap and its targets to increase the share of services exports from APEC economies in the total world services exports.

-  Activities outlined in the Global Value Chains (GVCs) Blueprint: The project particularly contributes to improve the critical role of trade in service within GVCs, especially in the pillars of enabling developing economies to better participate in GVCs and assisting SMEs to benefit from GVCs.

Objectives

1)   To facilitate better understanding of the structure of the main tourism GVCs (including culture and nature-based tourism; Meetings, Incentives, Conferences and Exhibitions - MICE tourism; accommodation and transport providers; cafes and restaurants); and the opportunities and challenges for tourism MSMEs in the Asia Pacific;

2)  To provide APEC policy makers with a set of recommendations on how to enhance competitiveness in tourism GVCs; and

3)  To help MSMEs build capacity and develop strategy for effective integration into services GVCs.

Alignment

This project is in line with the instructions of APEC Economic Leaders of 2016. They encouraged officials to implement further efforts to enable better participation, greater value added and upward mobility of developing economies and MSMEs in GVCs. In accordance, this project will share best policy instruments and practices on MSMEs’ integration into tourism GVCs and provide decision-makers with a set of innovative solutions to effectively integrate MSMEs into tourism GVCs in the Asia Pacific. Furthermore, in 2016, APEC Ministers supported the initiative “SMEs’ Integration into Global Value Chains in Services Industries” and they welcomed the sectors selected, including tourism.

This project also addresses the 2016 APEC Ministerial Declaration where Ministers endorsed the APEC Services Competitiveness Roadmap 2016-2025, recognizing services as a growing and dynamic component of GVCs. Besides, this project consistently contributes with the current work of CTI on GVC Cooperation and Development on Services, considering that facilitating MSMEs services trade is among CTI’s key priorities for 2017.

This proposal will furthermore provide a framework for relevant sub-fora to contribute to the CTI priorities, since it will be developed in close collaboration with the TWG, SMEWG, GOS and PPWE, as well as pursuing the involvement of ABAC. In that sense, the project will particularly contribute to progress the workstream of inclusive growth of the TWG strategic workplan 2015-2019 by providing policy makers with tools to assist MSMEs to gain better access to global markets.

Aligned with APEC’s primary goals, the project will provide for a platform for open information flow among MSMEs, MSMEs associations, policy makers and for discussions on various issues and challenges that tourism MSMEs might encounter in the process of accessing GVCs.

TILF/ASF Justification

In alignment with the APEC Strategic Plan on Capacity Building to Promote Trade and Investment, the project will share best practices among APEC economies and other related agencies, to effectively build capacity and contribute to APEC’s core trade and investment agenda. By drawing the best practice cases related to MSMEs integration, and its subsequent benefit, into GVCs from diverse backgrounds of the tourism industry, the project seeks to support the capacity building needs of APEC developing economies as well. 

By sharing best practices and knowledge about MSMEs’ entering GVCs in developed economies, APEC developing economies will meet their capacity building needs by improving the process of integration to GVCs to ultimately achieve their economic growth goals. In addition, this project will support the development of human capital and/or entrepreneurial capacity among MSMEs especially women-owned businesses in developing APEC economies.

Beneficiaries and Outputs

Outputs: The main output will be the publication of a comprehensive research paper on structures, main strategies for MSMEs to participate in tourism GVCs, as well as best government practices and policies on facilitating MSMEs access to tourism GVCs. 

The development of the paper will involve the preparation of: 

1) A survey which will help to identify APEC Economies’ particular contexts and different critical issues to address the integration of MSMEs into GVCs. The survey will be targeted to APEC economies’ government officials, who are directly or indirectly involved in the process of policy-making for the travel and tourism industry. Special efforts will be made in order to involve tourism MSMEs organizations and associations in the completion of the survey. Economies’ focal points will be requested to engage national tourism industry associations and MSMEs to inform the development of this project, and will also be encouraged to involve the participation of academic experts or institutions who may have an interesting learning model or case study to contribute to the analysis of this research;

2) A set of case studies including developed and developing economies’ best practices. The cases will present best practices and structures from different key tourism GVCs such as cultural; natural; and Meetings, Incentives, Conferencing and Exhibitions (MICE) tourism GVCs; and

3) A list of actionable recommendations for economies to improve strategies to integrate MSMEs into tourism GVCs and for MSMEs. The report will provide practical ways to overcome challenges they may face in participating in GVCs. These recommendations might include new approaches in MSME and GVC-related policies.

Outcomes: Medium-term outputs that can be expected include a rise in GVC awareness, development of strategies related to MSMEs participation in GVCs, and implementation and adoption of the framework and concepts by other APEC economies.

Under the work plan, the inputs of various participants from a wide variety of backgrounds will add value to the study on MSMEs and GVCs for the tourism sector. The insights, coming from the case studies and best practices shared, will provide a chance to set forth practical strategies for tourism MSMEs integration into GVCs. The round of comments and endorsement of the research paper, with various APEC economies and sub-for a participating, will provide a wide spectrum of ideas and plans to be adapted by MSMEs for implementation. Similarly, policy makers will have a chance to share and learn, from theoretical studies, comprehensive frameworks and/or experiences in other economies, to further develop and adapt to their own economies, including developing economies.  Overall, each of the activities in the work plan for this project will improve the way economies perceive tourism GVCs and the way they implement and execute strategies and policies related to GVCs.

Beneficiaries:

Direct beneficiaries: Direct beneficiaries of this project consist of important GVC stakeholders: 

1) Public Sector (government bodies and agencies): MSMEs GVC related-policy makers will be able to formulate policies to satisfy MSMEs interests, taking gender issues into account. Project outcomes will directly benefit policy makers, destination administrations and authorities directly responsible for the development and implementation of tourism policies.

2)  MSMEs and related associations: Stakeholders in the services sector (including tourism services providers, associations, chambers or councils) will have a better understanding of MSMEs’ participation in tourism GVCs. Current or potential MSMEs in tourism GVCs who are experiencing difficulties in their integration into GVCs, will be direct beneficiaries of the improved regulations and practices resulting from this project.  The proposed research paper will also analyse women’s role in the creation and development of MSMEs and formulate recommendations that are inclusive of their particular conditions.

3) Academia (academic institutions, public and/or private research institutions): Researchers and academics will have a better understanding of MSMEs’ participation in tourism GVCs which will help to stimulate and inform further research. The results of the project will contribute to the research of related international organizations (UNWTO, OECD, WTTC, WEF, ITC, WTO, etc.) 

Long-term beneficiaries: In the long-term, the extended beneficiaries will include Multinational Corporations (MNCs), Developing Economies, and other sectors. 

1) MNCs: Even though the project is focused on MSMEs participation in GVCs, as MSMEs improve their role in services GVCs, hospitality, travel and tourism MNCs will follow accordingly to become a beneficiary in the economic growth of developing GVCs.

2) Developing Economies: The developing economies are a part of direct beneficiaries in terms of capacity building on their Government bodies and agencies. Still, the economic growth resulting of the increased trade in services GVCs in the long-term will benefit APEC developing economies in the ways of job creation, GDP growth, etc. 

Other Sectors: Other sectors that are conducting a project on MSMEs and SMEs integration into services GVCs, including fashion industry, software, logistics and distribution, will also benefit in the long-term from shared applicable case studies and policy recommendations of this project.

Dissemination

The Project lead will make available the research paper through the APEC official website and the results will be disseminated electronically to CTI and relevant sub-fora, particularly the TWG and SMEWG, for further collaboration. The project results will be accessible to all APEC economies as well as the target audience of this research, which will include MSME policy development officials, management and decision makers of MSMEs, industry associations, academic researchers in APEC economies and international organizations, through the APEC Publications website.

The final output of the project will be compiled with other lead services sectors research and will be made available for MRT and relevant APEC Ministerial Meetings. In addition, the tourism research paper report will be disseminated for further development and incorporation into the final synthesizing report of CTI’s “SMEs Integration into GVCs Initiative” to include other lead sectors such as software, fashion design, logistics and distribution.

Peru’s official websites will also be used to disseminate the results from this project for interested public. Peru will work towards sharing such information with industry associations and other international organizations. Additionally, Peru will provide a summary of the project progress and results to CTI and SOM meetings as well as relevant sub-for a meetings (TWG, SMEWG, PPWE, etc.)  There are no intentions to sell the outputs from this project.

Gender

The project case studies will analyse if there are significant gender disparities to access for MSMEs in the tourism sector’s GVCs. Women as well, will be included in the development of the project recommendations and will be consulted during the study on their particular circumstances. Other APEC developing economies will be encouraged to constantly consider gender equality throughout the selection of their case studies for this project as well. 

The research process will also collect and use sex-disaggregated data to analyse the impact of the project on women. Overall, the project leads will take steps to ensure equal gender participation at all levels of this project from planning and development, through to implementation and dissemination of results.

Work Plan

Time

Activity

Implementation

Deliverable

Participants

December 2017 - February 2018

Bidding process

Prepare the Request for a Proposal for contracts valued over USD 20,000. 

Circulate the RFP to co-sponsors for comments.

Make arrangements with the winner consulting firm.

RPF

Contract

Secretariat, PO and project executives.

March  - July  2018

Research work carried out by consultant.

PO, with the support of the consulting firm, will prepare and carry out a survey to preliminarily study the measures and policies that have already implemented by economies to promote and regulate MSMEs integration into tourism GVCs, and which may be considered best practices. This process will also identify the needs and critical issues during the implementation process or in order to draft actionable recommendations.

This comprehensive study will furthermore report the structure and situation of the main tourism GVCs; such as cultural, natural, adventure and MICE tourism GVCs, and will provide a diagnose  to improve competitiveness of services exports in tourism GVCs.

The study will analyse developing as well as developed economies’ data.

Survey

Draft Research Paper

Case Studies selected

The preparation of the report will involve all APEC economies and will engage their respective MSMEs, industry organizations, policy makers, research institutions and academia, for literature review, collection of data, case studies and other relevant information.

Economies are invited to nominee themselves as case studies. A maximum of 5 is expected, one of each geographic region if possible (Latin America, North America, Oceania, East Asia) 

July 

2018

Round of comments on the draft research paper.

Circulate draft of the study and recommendations for comments ahead of SOM3 to relevant working groups such as TWG, SMEWG, GOS, PPWE and ABAC. 

Comments and inputs from economies and relevant organizations to the research paper.

PO and project executives.

Representatives of APEC economies from relevant fora (TWG, SMEWG, GOS, PPWE and ABAC)

August 2018

Present final draft research paper for  additional comments and, if possible, endorsement at SOM 3

Project leads will make sure to integrate different perspectives and comments from APEC members.

Final Draft Research Paper for endorsement

PO and project executives.

APEC economies

Senior Officials

December 2018

Publication of study

Final Report

Publication of research paper and recommendations on the APEC website.

Present final report of the project to the APEC Secretariat.

Publication of the Research Paper.

Final Report of the Project

Secretariat, PO and project executives.

Risks

Risk

Risk Management

-    Lack of interest from the economies to participate in the survey or propose case studies for the research paper.

-    Duplication of work with other APEC sub-fora or international organizations

-    Progress tracking of the project

-    Consultant’s delay in providing deliverables

- Contact every economy to gain their support and effective reply.

- Integration of practical issues and case studies and review of the existing literature to avoid redundancy

- Convergence of various methodology and theories in research and analysis to add value to the existing works

- Request the consultant for the use of plans and production of reports to help measure and monitor project progress and close monitoring of the project time plan

- Monitoring of the Logical Framework Matrix of the project

Monitoring and Evaluation

Indicator

Target

Number of economies to answer project survey

At least 10 economies

Report of case studies

At least 3 case studies

Means: survey, data collection and analysis, desk study, etc.

Number of best practices

At least 7


Gender Indicators
: To reflect sufficient level of gender considerations, indicators such as the number/ratio of women-led case studies, the number of gender-specific issues covered with regard to women led MSMEs will be used.

Gender indicators

Target

The number of women-led MSMEs in case studies of APEC economies

At least 3

The number of gender-specific issues

At least 3

Linkages

This project utilizes the information and knowledge about MSMEs integration into GVCs from several international organizations such as UNWTO, OECD, WTTC, UNCTAD, ITC, World Bank, WTO, among others, as well as academic publications. Through the implementation of this project, detailed information will be disseminated to these stakeholders to ensure their inputs during the progress presentations of the project in the framework of APEC meetings. 

Intra-APEC stakeholders that have potential engagement include CTI, TWG, GOS, SMEWG, PPWE, PSU and private partners in ABAC, which the project leads will reach to develop an in-depth research. In addition, all materials developed and published for the purposes of this program will be made available via the APEC document database.

The tourism sector has not been analysed yet under a global value chain approach in APEC, thus this proposal does not duplicate previous work, but add meaningful values building on the outcomes of previous PSU and CTI research such as the project proposed by Korea in 2016: “Promoting SMEs’ Integration into Global Value Chains – Phase 2”.

As one way of enhancing linkages to other APEC works, this project will put efforts to identify cross-sectoral obstacles that affect MSMEs’ integration into GVCs regardless of services sectors and develop policy recommendations to address such obstacles. Such outcomes can be reviewed and utilized afterward in GVC work streams of other services sectors like software, fashion design, etc.

Sustainability

The results of the tourism sector will be incorporated into the final synthesizing report of the CTI’s Initiative SMEs’ Integration into Global Value Chains in Services Industries”. The final comprehensive report will incorporate all the outputs from 4 GVC sectors (tourism, software, fashion industry and logistics and distribution). This step will focus on how to effectively integrate progresses made in those key services sectors’ GVCs. While addressing key problems in each of the sectors GVC, this phase will also focus on cross-cutting issues to develop actionable policy recommendations with general applicability, and it also sum up different types of cases with diverse backgrounds that will benefit all the APEC economies including developing economies. 

CTI and TWG and SMEWG’s agenda of work will act as a sustainable platform for continuous discussions and knowledge sharing in the boundary of tourism GVCs and MSMEs’ participation in it.

Measurement of progress for short-term outcomes and impacts will be taken care of during the project evaluation process, including criteria such as GVC awareness, MSMEs-GVCs related policy implications, etc. These results will be measured through questionnaires circulated during the project. For medium and long-term outcomes and impacts, data from national-level statistics agencies will be gathered to measure outcomes such as increase in a percentage of MSMEs participating in GVC. 

In addition, the project results will be made available electronically at APEC publication page which may be used as a reference to possible options and approaches in addressing areas or gaps that may still be carried out by other economies to improve the needs of tourism MSMEs’ participation in GVCs.

Project Overseers

Project Overseer: Mrs Fabiola Velasquez will manage the project. She joined the public tourism sector in 2011 and has relevant experience in tourism since 1999. She is current Coordinator of International Cooperation and Tourism Affairs at the Vice Ministry of Tourism of Peru. Mrs Velasquez holds a Master’s Degree in International Cooperation and in High Level Management of Policies and Strategies for Tourism Destinations. 

Project Executives:
The management of the project will be supported by work of 2 executives: 

Ms Cintia Rodriguez Torres - Analyst on International Cooperation and Tourism Affairs
Vice Ministry of Tourism - Ministry of Foreign Trade and Tourism of Peru
Email: crodriguez@mincetur.gob.pe 

Ms Daniela Huertas Mendoza - Specialist of the APEC General Coordination
Vice Ministry of Foreign Trade - Ministry of Foreign Trade and Tourism of Peru
Email: dhuertas@mincetur.gob.pe

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Consulting firm or consultant’ scope of work is as follows:

-  To review and evaluate comments and inputs made by economies in liaison with the Project Overseer and Project Executives.

-  To be involved in all phases of research in coordination with the Project Overseer and Project Executives.

-  Responsible for preparing briefing documents and/or presentations of draft research paper and other project outcomes for relevant APEC meetings.

-  Should be involved in the process of research for 19 to 20 hours a week.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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