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TRADE INVESTMENT INNOVATION Fabio Russo

TRADE INVESTMENT INNOVATION Fabio Russo Promoting Sustainable Tourism through an Integrated Cluster Approach Ljubljana, Slovenia, 8 May 2018.

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TRADE INVESTMENT INNOVATION Fabio Russo

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  1. TRADE INVESTMENT INNOVATION Fabio Russo Promoting Sustainable Tourism through an Integrated Cluster Approach Ljubljana, Slovenia, 8 May 2018

  2. OUTLINEUNIDO SME Cluster Development: a tool to promote inclusive and sustainable local developmentTowards an Integrated Cluster Approach: linking Food, Creative Industries and Tourism: the case of MontenegroCluster Development and Sustainable Tourism

  3. Clustering: a tool to promote Inclusive and Sustainable Local Development Clusters are promising environments for: • the development of linkages for SME competitiveness • the creation of public-private partnerships for inclusive and sustainable development

  4. The UNIDO Approach www.clustersfordevelopment.org

  5. Russia Hungary China Serbia & Montenegro Iran Mexico Jamaica Jordan Morocco Thailand Vietnam Morocco Tunisia Pakistan El Salvador Vietnam Egypt Senegal Honduras Nicaragua Indonesia India IVC Ethiopia Colombia Nigeria Bolivia Colombia Peru Ecuador Ecuador Uruguay South Africa Zimbabwe Cluster Development Ongoing Cluster Development Completed Export /Origin Consortia UNIDO Cluster Projects’ coverage Turkey

  6. Tourism Driving Local Economic development • Tourism is experiencing steady growth. Linkages between productive industries (e.g. agricultural, handicraft, etc.) and the tourism sector can help producers access new markets and generate new income and employment opportunities. • Food and beverage consumption represents a significant part of visitors expenditure but it can also be a high area of economic leakage.Developing and promoting sustainable,locally sourced products helps ensure the host country captures the positive social and economic impacts of tourism. • Food and cultural products differ by region – encouraging the discovery of regional products through tourism can help disadvantaged regions to capitalize on their particular assets. It also rewards producers for their commitment to sustainable agricultural practices and biodiversity.

  7. An Integrated Cluster Approach:Delicious Montenegro ……..An approach towards linking agri-food clusters and tourism

  8. Technical assistance focus

  9. Cluster Case Study – Olive Oil Cluster: 16 SMEs – olive oil producers in two municipalities in the South of Montenegro • Challenges: • Low level of production (low quantities) and difficulty to compete with cheaper imports on the basis of scale or price • Poor packaging and visibility • Weak sales channels (90% of cluster products sold from their house and only 5-10% through official sales channels to some restaurants, hotels and local supermarkets. • Within this scenario only the up-market segment is one where local producers could look at increasing sales on the local market (particularly to tourists) and exports in the medium term (and still remain profitable). • Opportunities: • Very old ancient olive trees in the cluster region identified as a main competitive advantage– joint approach required!!

  10. Project Results – Olive Oil Cluster • Cluster firms assisted in developing a joint product line from trees older than 1,000 and 2,000 years 42°N 19°E– branding developed, internationally recognized laboratory analysis - first exportable product of the cluster. • Harvest done jointly in presence of quality assurance inspections – same for pressing and bottling. • UNIDO cluster development agent supported the trust building process and helped to develop linkages • The first 2 bottles of the newly created brand were given to Prince Charles and his wife Camilla in March 2016.    • Cluster website (http://oliveoilmontenegro.me/), two olive trails for tourists as well as a joint sales events in shopping malls organized. • Video on the olive oil cluster: https://www.youtube.com/watch?v=loWIBbnjOco

  11. Introducing Delicious Montenegro • Montenegro’s nature and cultural heritage give the local delicacies unique flavor and taste. • To promote market access for agri-food clusters (initially wine, fish and olive oil) and capitalize on Montenegro as a travel and tourist destination, UNIDO developed 'Delicious Montenegro’. • By uniting different agri-food producers under one umbrella brand and fostering linkages with gastronomy and the tourism sector, Delicious Montenegro helps disadvantaged regions capitalize on their assets and their distinctiveness. http://deliciousmontenegro.me/

  12. Delicious Montenegro in Practice Engaging with tourists through story telling

  13. Delicious Montenegro in Practice Delicious Montenegro received the “most innovative fair exhibitor” award at the 41st Food Fair held in the Montenegrin town of Budva in March 2015.

  14. Delicious Montenegro in Practice • Olive trails developed linking oil producers with touristic spots and local heritage sites

  15. Delicious Montenegro - Sustainability • Delicious Montenegro network maintained & constantly expanded • Partnership with the Student Business Club of UDG University of Montenegro • Strong linkages with the national Chamber of Commerce • Regular promotional efforts

  16. Benefits of the Approach EFFICIENT Umbrella branding encourages cooperation between enterprises and institutions. Joint activities enhance collective efficiency and reduce individual risk. Improved dialogue and coordination streamlines support services to the industry, leading to a more efficient use of resources. INNOVATIVE The cross-sector, inter-regional branding approach encourages information exchange, knowledge creation and innovative solutions to challenges faced by MSMEs and opens up new opportunities. SUSTAINABLE Brokering linkages between agri-food producers, tourism and related industries mutually re-enforces demand for local produce and enhances the tourism offer. Rewards producers for commitment to biodiversity and preservation of natural and cultural resources. Local ownership of the brand also ensures sustainability INCLUSIVE Development of linkages and local networks ensures social inclusion and reduces tourism leakage. Food differs by region -Agri-food focus ensures rural and remote areas also benefit from income generating and employment benefits of tourism.

  17. Cluster Development & Sustainable Tourism • A fundamental condition to achieve sustainable tourism is the collaboration among different stakeholders in a region • It is important to identify the synergiesbetween tourism sector and other sectors: agricultural and handicraft • Through collaboration among stakeholders and synergies among sectors (Integrated Cluster Approach) it is possible to promote economic growth by protecting and valorising the natural and cultural landscape

  18. Agro-food, Tourism and Creative Industries - an integrated cluster approach Web links: Executive Summary https://www.unido.org/sites/default/files/files/2018-03/2017-10-18%20EXECUTIVE%20SUMMARY%20EN%20WEB.PDF Full report https://www.unido.org/sites/default/files/files/2018-03/2017_10_23%20CLUSTER%20REPORT%20EN%20WEB_0.PDF

  19. THANK YOU

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