Technical Assistance Consultant s Report. Armenia: Women s Entrepreneurship Support Sector Development Program
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1 Technical Assistance Consultant s Report Project Number: August 2014 Armenia: Women s Entrepreneurship Support Sector Development Program Prepared by Karen Vardanyan PEM Consult Yerevan, Armenia For SME DNC This consultant s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.
2 REPORT on GSVC Exercise in Tumanyan District Analysis of Tourism Value Chain with Focus on Bed & Breakfast To: By: ADB Karen Vardanyan Alaverdi, 2014
3 Table of Contents I. GENERAL TASKS OF THE ASSIGNMENT... 3 II. GENERAL DESCRIPTION... 3 Alaverdi... 3 Akhtala... 4 Tumanyan... 4 Odzun... 4 Dsegh... 4 Haghpat... 5 III. GSVC EXERCISE... 5 Workshops with stakeholders... 5 Interviews with women entrepreneurs... 7 Presentation workshop... 7 IV. MAIN FINDINGS... 7 V. RECOMMENDATIONS... 9
4 I. GENERAL TASKS OF THE ASSIGNMENT ADB invited a consultant to implement a GSVC (Gender-Sensitive Value Chain Analysis) exercise for tourism value chain in Tumanyan district with special focus on B&B (Bed and Breakfast) owners. GSVC comes to analyze women participation in the value chain and reveal initiatives which will boost development of that value chain, thus enhancing also development of women businesses in the value chain. The value chain was selected as a women-intensive sector where women entrepreneurs are naturally actively involved. The objective of the assignment is to conduct a GSVC exercise in Tumanyan district (Alaverdi and surrounding communities) of Lori region which aims in the identification of initiatives which will empower women entrepreneurs to help them grow and adopt new and improved roles in the value chains. The main tasks of the assignment are as follows: a. Identification of main stakeholders in the field (women entrepreneurs, NGOs, supporting institutions etc.) b. Conduction of workshops with local stakeholders using GSVC tools and workshop formats. c. Conduction of interviews with the stakeholders to collect relevant economic and gender data. d. Analysis of the collected data together with team of experts (SME DNC and TA) to reveal supporting initiatives. e. Conduction of Presentation workshop to present all findings and suggested interventions / initiatives. f. Elaboration of the report. II. GENERAL DESCRIPTION There are four towns and 27 villages in Tumanyan district of which main tourism destinations are: Alaverdi, Akhtala and Tumanyan towns as well as Odzun, Dsegh and Haghpat villages. Below is the brief description of each community: Alaverdi Alaverdi has area of 23.5sq km and population of 16400, from which 54% are female. It has a large mine of cuprum and a processing factory. The latter is creating jobs and income for most of the working population. The town is placed in Debed canyon which is an attractive point for tourists. The climate is mild. The town is rich of forests.
5 The second economic sector (after mining and processing) is agriculture. Mainly women are active in this sector as men are busy in the factory. Akhtala Akhtala has area of 4,3sq km and population of 2400 of which 55% are female. The town is famous for its Akhtala castle which belongs to 10 th century and a monastery complex of 12 th century. Fossils of 1st century BC where found in Akhtala. The town is placed on the left side of Debed River. Akhtala is rich of forests. There is a sanitarium in the town. Mining/industry is the main sector of the economy. Tumanyan Tumanyan has area of 30.8sq km and population of 1800 of which 54% are women. The name of the town comes from a famous Armenian poet Hovhannes Tumanyan. The town is situated in the riverside of Debed River. The climate is mild. The main sector of the economy is the industry, particularly processing of heavy metals. There are also milk processing, dairy production and bread production small factories. Part of the population is busy in agriculture mainly cattle breeding. Odzun Odzun has area of 53.13sq km and population of The village is situated on the hill at the left side of Debed River. The distance from Alaverdi is 8km. People are busy in cattle breeding and milk production, cultivation of crops and forage production. The village is famous with its Monastery complex of 8 th century which attracts tourists from all over the world. Dsegh Dsegh has area of 39.47sq km and population of There are a lot of chantries, khachqars and small churches in the town. The village is a tourism destination given the fact that a very famous Armenian poet Hovhannes Tumanyan was born there. There is a museum of the poet in the village.
6 Haghpat Haghpat has area of 15.28sq km and population of 767. Haghpat is mentioned in the history since 8-7 th centuries BC. It was also considered as a religious center in the middle ages. The village is famous with Haghpat monastery built in 976BC by the king Ashot Bagratuni and queen Khosrovanush. There are several factors which lay under development of tourism in the district. First of all, the region is rich of forest and beautiful nature. The climate is mild which attracts tourists in summertime. Also, the district is rich of historical and cultural places, monasteries and churches many of which are included in UNESCO world heritage. Being situated near the Debed River is another attractive factor for tourists. III. GSVC EXERCISE The GSVC exercise in tourism value chain in Tumanyan disctrict with special focus on B&Bs was organized on July It consists of the workshops and interviews with the main stakeholders and a presentation workshop to present the findings of the exercise and future recommendations for development of the value chain and women businesses particularly. Workshops with stakeholders During the GSVC exercise in Tumanyan district, two workshops were organized to inform the stakeholders about the project and to collect information on current situation and future plans. Porter's Diamond and Value Chain Mapping were used to conduct the workshops. Main stakeholders of the value chain women entrepreneurs involved in hotel, B&B and restaurant businesses participated in the workshops. The workshops where conducted in Worldvision's office in Alaverdi which is another actor for tourism development in the district.
7 The following information about the tourism value chain was revealed during the exercise: Involvement of tourists Transportation Accomodation Food Entertainment Shopping Visits Tour agencies in Yerevan Tourists reach the district on their own 5 hotels 3 main restaurants Mikoyans museum 2 super-markets Churches and mona-steries Through tourism Web - sites Internal transport B&Bs 4-5 cafes Tumanyan museum Souvenir shops near the churches Debed canyon Satisfied customers bring new ones Ropeway Many hospitable houses 1 fast food Hiking Other sightseeings Taxis Tours in the forest
8 Interviews with women entrepreneurs During the exercise, 25 interviews were conducted with women entrepreneurs involved in the value chain. The interviews were structured in a way to learn about women businesses, their previous development and future plans as well as to collect ideas and opinions about the situation in the value chain and to understand what women see as a good initiatives for development of the value chain and their businesses. Some of the women entrepreneurs, involved in the GSVC exercise, have participated in ADB-financed CEFE training for B&Bs which was conducted in Presentation workshop In the end of the exercise, a Presentation workshop was organized to present the main findings to the stakeholders as well as to present main initiatives which can be implemented for development of the value chain. IV. MAIN FINDINGS Several competitive advantages were identified during the Exercise which lay on the basis of tourism development in Tumanyan district. These are listed below: Hospitability of the local population Beautiful nature Mild climate (not so hot in the summer) Resort/healthcare potential Historical and cultural monuments, churches and monasteries Forests Debed River Tradition of local festivals (barbeque festival, fruit festival, sport festival etc.) The Exercise also showed that women are strong in this value chain because of their hospitability and household management experience which comes naturally. These qualities make them stronger especially in hotel and B&B businesses. Women are mainly active in accommodation and food parts of the value chains as well as in shopping. Particularly, in accommodation women are involved as entrepreneurs and managers and in food in midlevel management and employees. In the shopping part lots of women are involved in production and sales of souvenirs.
9 Main findings of the Exercise were structured as strengths and weaknesses in each part of the value chain which are presented below: INVOLVEMENT OF TOURISTS Leading B&Bs are presented in the main tourism web-sites Pool of loyal customers formed during the years of experience Mild climate, beautiful nature and rich historical-cultural monuments Cultural and traditional festivals: Barbeque festival in Akhtala, Tumanyan days in Dsegh, Theater Lori in Alaverdi The district is not positioned as a tourism zone Leading tour agencies in Yerevan do not include the district in main tourism itineraries The cooperation with Yerevan tour agencies is weak Created linkages/connections are random and not organized B&Bs are not proactive in creation of new connections/partnerships There is no agency/organization which can involve tourists professionally LOGISTICS / TRANSPORTATION Tourists reach the destination on their own Poor condition of the roads ACCOMODATION Admissive prices by hotels and B&Bs Availability of accommodation in the whole district Individual hospitality of B&Bs B&Bs continuously invest and improve their conditions and quality Competent approach to B&B business B&Bs are not certified by the Ministry of Economy The necessary equipment/ materials are not available in the district and B&Bs have to buy it from Yerevan Hotels and B&Bs are not registered for gaining tourists from the social insurance system FOOD B&Bs provide tourists with natural food Availability of home-made food products (honey, jams etc.) The region (Lori) has rich traditional Very few quantity of restaurants Restaurants are similar, no diversity Lack of quality workforce in the market The service quality doesn t satisfy
10 cuisine international tourists (for example, there are no English-speaking waiters). ENTERTAINMENT Some B&Bs insure interesting entertainment for their tourists Museums, ropeway, Debed canyon Theater Lori and other events Lack of parks and pedestrian zones No night life SHOPPING The district is rich of artists, sculptures and other masters who create interesting and valuable products Local production of souvenirs The souvenirs are similar, there is no diversity Local artists and other masters are unknown VISITS Lots of tourists visit to local churches and monasteries Churches and monasteries are under continuous improvement (reconstruction) Big potential of development of sightseeing places Religious camps Training of guides by Worldvision Availability of boards which show the sightseeing places B&Bs organize tour for their tourists Some taxis take unexpectedly high fees for tourists transportations to the sightseeing places There are no organized tours Unavailability of bikes and horses Another finding of the Exercise was that there is a lack of cooperation among local entrepreneurs (B&Bs, hotels, restaurants etc.) which would add value and create more income for all the businesses. V. RECOMMENDATIONS Below are presented main recommendations for each part of the value chain. Some of which can be organized in frames of ADB s Women Entrepreneurship Development project.
11 INVOLVEMENT OF TOURISTS Establishment of information center and local tour operator More intensive cooperation with B&Bs from other regions Organize a networking event to create connections between B&Bs Joint participation in fairs and tourism expos Training on aggressive marketing for B&Bs District s branding as a tourism zone ACCOMMODATION Creation of unique competitive advantages by B&Bs Introduction of 5S system Training on B&B standards Local college to organize training related to tourism sector (service quality etc.) Certification by MoE FOOD Promotion of traditional food in B&Bs, hotels and restaurants Training of cooks and waiters at the local college ENTERTAINMENT Organization of traditional entertainment for tourists Creation of entertainment places for night life (pubs, bars etc.) Establishment of a hippodrome Insure diversity of entertainment SHOPPING Production and sales of different souvenirs Sale of resort-related equipment (hiking etc.) VISITS Organization of tours Providing information on local tours and their prices Rent of bicycles Visits to the mine processing factory
12 Consequently, there is a big potential of tourism development in the district. All the main preconditions are there infrastructure (hotels and B&Bs, sightseeing places etc.). The identified initiatives will help to develop the value chain with not so big efforts/resources and will bring to development of women businesses in the value chain. Although there is lack of trust towards development organizations (donor-funded projects, NGOs etc.) but the stakeholders are ready for cooperation and participation in the future initiatives.
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