USAID’s Tourism for All Draft Annual Work Plan – FY 2021

The National Tourism Policy (NTP) aims to attract 200,000 tourists by 2030, but the current tourism infrastructure is limited, with only six tour operators, four dive shops, five hostels, and 30 hotels in Dili. The majority of these businesses have opened since independence, and service quality is inconsistent, with limited information about attractions and underdeveloped infrastructure. The country's tourism industry is hindered by a lack of investment and development outside of Dili, as well as a shortage of accommodation to meet growing demand. According to the United Nations World Tourism Organization (UNWTO), Timor-Leste received 66,000, 74,000, and 75,000 international arrivals in 2016, 2017, and 2018, respectively. However, these numbers are disputed by the Ministry of Tourism, Commerce and Industry (MTCI), which reported 57,000 visitors in 2019. Research conducted by The Asia Foundation found that less than 10% of all arrivals to Timor-Leste were bona fide tourists, with the majority visiting for business purposes. The COVID-19 pandemic has further constrained international visitor arrivals, and the country is expected to focus on domestic tourism as an alternative strategy. Timor-Leste remains off the radar of most Asian travelers due to expensive airline prices, a dollarized economy, and limited positive international press. The Government of Timor-Leste recognizes tourism as an important sector for diversifying the non-oil economy and has ratified the National Tourism Policy (NTP). The policy emphasizes five key themes: Priority, Prosperity, Protection, Partnership, and People, and aims to ensure social, economic, and environmental sustainability in the tourism sector. However, stakeholder fragmentation and the absence of a unified vision hinder the implementation of the NTP. The USAID's Tourism for All project aims to address these challenges by supporting the development of the tourism sector in Timor-Leste. The project focuses on improving the quality of tourism services, increasing the number of tourists, and promoting sustainable tourism practices. The project's objectives include: * Improve the quality of tourism services in Timor-Leste * Increase the number of tourists visiting Timor-Leste * Promote sustainable tourism practices in the country The project will achieve these objectives through a range of activities, including: * Providing training and capacity-building programs for tourism service providers * Supporting the development of new tourism products and services * Promoting Timor-Leste as a tourist destination through marketing and advertising campaigns * Encouraging sustainable tourism practices through the development of environmental and social impact assessments The project will also focus on supporting the development of the tourism sector in Timor-Leste, including: * Providing technical assistance to tourism service providers * Supporting the development of new tourism infrastructure * Encouraging public-private partnerships in the tourism sector The project will be implemented over a period of four years, with a budget of $5 million. The project will be managed by a project management unit, which will be responsible for overseeing the implementation of the project and ensuring that it is completed on time and within budget.