INVESTING IN COMMUNITY BASED TOURISM (CBT) GRANTS Vs. LOANS By Joseph Ruhiu Programme Manager Community Environment Faci

1. INVESTING IN COMMUNITY BASED TOURISM (CBT) GRANTS Vs. LOANS By Joseph Ruhiu Programme Manager Community Environment Facility

2. SCOPE OF PRESENTATION • Introduction • Funding community based tourism in Kenya • Funding operations and performance • Limitations to the turn-key funding • The future of community based tourism

3. INTRODUCTIONWHY CBT • Recognition of the important role that the community can play in biodiversity conservation • Approach to reduce human-wildlife conflict and enhance co-existence • Supporting communities exploit resources within their (communal) lands in sustainable manner • Localizing biodiversity management policies • Empowering the communities – through governance, rights and economically

4. The Scope of CBT • Enormous potential in spite of challenges • A strategy to enhance biodiversity conservation • Advocating responsible tourism income to the local poor and the marginalized • Notable efforts to CBT to recognize the important contributions of the community – through ownership, rights and control over natural resources • Enhance livelihoods support of the communities through active participation in tourism and biodiversity conservation • Operating on commercial orientation and implemented through community – private sector partnerships

5. Conti… • Beliefs, community empowerment, improved governance, equity and income sharing • Practical and successful examples in Kenya – Kimana, Shompole, Il Ngwesi, Eselenkei, Koija, Koyaki, Lumo, Tana Delta Camp, Kijabe, Kalama, Namunyak, Ol Kiramatian, Ol Gulului, Elerai, Ol Gaboli • Other examples in Southern Africa – CAMPIRE in Zimbabwe; and LIRDP and ADMADE in Zambia

6. Funding Community Based Tourism in Kenya Overview • Global value of Kenya’s wildlife protected areas – US$250 million annually • Tourism is the 3rd foreign exchange earner – contributing 10% to the GDP (up to US$27 million annually) • CBT support in Kenya dates to early 1970s – initial efforts through by WCMD, latter KWS through COBRA (USAID, World Bank and other donors), succeeded by CORE • Supportive and facilitative role – KWS established Community Wildlife Service to increase community benefits from conservation and sustainable management of natural resources outside protected areas.

7. Conti…. • CBT is almost 100% donor dependent and this scenario is not likely to change soon • Role of government; provision of security, infrastructure, development, marketing coordinator

8. Early CBT Initiative and Supporting Donors – Some Examples • Kimana Community Wildlife Sanctuary – an electric fence with EC support of $8,000 – 10,000 while KWS aided infrastructure development with Kshs.4.2million through WDF • Mwaluganje – through Eden Wildlife Trust • Sera Conservancy – established through Northern Rangeland Trust with support from USAID • Kalacha Bandas in Marsabit and rehabilitation of Il Ngwesi Bandas – through Community Wildlife initiative (CWI) of CDTF through EC • 16 community based conservation through BCP of EC

9. Donor Involvement in CBT in Kenya • USAID – through the COBRA and CORE programmes (US$ 43million ) through KWS, Pact Kenya inc., AWF etc. (all concluded) (USAID teamed up with World Bank and other Donors) • USAID/World Bank – PAWS (US$ through KWS • Wildlife for Development Fund (US$ ) through KWS (concluded) • USAID – FORREMS through LWF, KEFRI (US$329,000 and US$290,000) respectively • USAID – through CORE committed some US$715,809 to support community based tourism of which US$434,194 was disbursed in 2005 to 13 on going initiatives • USAID through the LEWA Northern Rangeland Trust programme provided US$400,000 to set up Sera Conservancy

10. Conti… • EC – Community Wildlife Initiative (CWI) (Euro 507,143) through CDTF (Concluded) • EC – Biodiversity Conservation Programme (Euro 5.5 million) through CDTF – covering 16 CBT projects among others (Concluded) • EC – Community Environment Facility (Euros 8 million) through CDTF (On going and expected to grant funds to some CBTs) • EC – Tourism Trust fund (Euros I billion) on going and granting CBTs ending in the year 2008

11. Other Players • Conservation based NGOs – WWF, ACC, AWF, EAWS, Pact Kenya, Nature Kenya, Lewa Downs • International bodies – UNDP (GEF and COMPACT) • National agencies – KWS, KEFRI, National Museum of Kenya • Trust, Foundations and Endowments • Private Sector Operators

12. Funding Operations and Performance • Notable growth since 1970s – perhaps one of the fastest growing sub-sectors in tourism • Highest potential to contribute significantly in future – Vision 2030 • About 100 CBTs established and operational compared to one or two in the early 1970s • Highest source of funding – donor community • Emphasis – establishment of conservancies, bandas, etc.

13. IMPACT OF CBT OLGABOLI WOMEN BANDAS PRE BCP • Serious environmental degradation; High poverty and illiteracy level;Non-economic activities;Male dominance;Unexploited natural resource; Exploitation by tour operators; Low leadership skills and Low bargaining power WITH BCP First Maasai women biodiversity conservation project where rural illiterate women have negotiated for land access rights and are engaged in eco-tourism development aimed at introducing a new and more productive benefit avenue. Objective: reverse situation pre BCP: Sustainably utilize biodiversity for economic gains; Diversify sources and types of income;Reverse male dominance in enterprises; Reverse male dominance in enterprises; Empower women in matters of conservation; Reverse the deteriorating range condition; Reduce poverty through tourism; Provide an alternative source of income – Fall back position, Provide conducive environment for skills building – Literacy POSITIVE IMPACTS: Positive impacts:- ·          Income increased from Kshs. 400,000 between 2005 and Kshs. 2million in 2007; BCP support attracted financial support for a sixth banda from USAID; Illiteracy level brought down through literacy classes; 10 people employed in the in the enterprise, mostly young men and girls; Cattle rustling reduced through radio network and vehicle (secondary impacts); Land rehabilitated; Partnerships build – community-private sector Rift Valley Adventures, Princeton University; Project attracted funding from USAID and 6th larger banda build; Piped water availed to local people; Value addition to local artefacts through training in beadwork; Community sensitised on HIV and AIDS; Donations provided  Negative impacts:- ·          Loss of grazing area to tourism;   Risk of attack by wild animals; Conflict between men and women – A case of economic empowerment on women; Leadership problems – coups and countercoups; Vested interest and interference by men – negative publicity; Interference with social values – Women abandoning core family activities to pursue training

14. Limitation to the Turn-key Funding • Absence of a system to ensure equitable sharing of benefits and opportunities of tourism with local communities • Inadequate financial outlay to develop infrastructure • Inadequate funding for tourism marketing and promotion • Failure to integrate a business approach with communities being keen to sell artifacts – Business not Welfare • Weak governance – culture, elites, politics • Over dependency and inability to graduate from CBTs an attitude problem • Traditional communities limited interest and slow to change and adopt monetary economy • Weak/skewed partnerships between communities and private sector

15. The Future of Community Based Tourism What can we do? • Creative resource mobilization – going beyond donors • Standards and regulations for environmental and cultural impact assessment, monitoring and auditing of existing development • Explore new funding mechanisms • Build capacity for local people to negotiate with private sector and man CBT as business • Marketing of the tourist product to be integrated in project development • Harmonize donor conditions while targeting the same community • Explore how local communities can contribute more towards infrastructure development

16. Funding Options • Allocate (national and donors) sufficient and sustainable financial resources to CBT • Focus on:- • Improving existing sources • Exploring on new sources of funding • Encouraging tourism investment • Supporting joint and balanced ventures

17. Viable Community Based Tourism Fund Raising Strategies • Advertisements • Fun-fairs, walks and runs • Opportunities in CRS • Exhibitions and trade fairs • Donations based on vision and negotiations • Branding of certain products – Maasai culture, Dust of Kilimanjaro • Home stays

18. Thank you