Type of Review: Annual Review
Project Title: Great Himalaya Trail Development Programme
Date started: 2011
Date review undertaken: Jun/Jul 2012
Instructions to help complete this template:
Before commencing the annual review you should have to hand:
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the Business Case or earlier project documentation.
the Logframe
the detailed guidance (How to Note)- Reviewing and Scoring Projects
the most recent annual review (where appropriate) and other related monitoring reports
key data from ARIES, including the risk rating
the separate project scoring calculation sheet (pending access to ARIES)
You should assess and rate the individual outputs using the following rating scale and
description. ARIES and the separate project scoring calculation sheet will calculate the overall
output score taking account of the weightings and individual outputs scores:
Description
Outputs substantially exceeded expectation
Outputs moderately exceeded expectation
Outputs met expectation
Outputs moderately did not meet expectation
Outputs substantially did not meet expectation
Scale
A++
A+
A
B
C
Introduction and Context
What support is the UK providing?
The UK has provided to SNV (Netherlands Development Organisation) a grant of £2,306,274.00
for a period of two years from July 1st 2011 to 30th June 2013 (including £491,000.00 from Feb
2010 to June 2011 for the Inception Phase).
What are the expected results?
The GHT seeks to ‘Increase the incomes of 1072 micro, small and medium enterprises by US $
1.21 million and will create 2251 number of equivalent jobs by 2013’.
Outcome
To spread tourism benefits more widely and inclusively in five GHT districts (Humla, Dolpo,
Gorkha, Solukhumbu and Taplejung).
Outputs
1) Marketing and promotion of the GHT improved.
2) The ability of key partners to plan, develop and manage an inclusive tourism sector is
improved.
3) Market oriented tourism business along the GHT developed.
4) Improved social and environmental outcomes in targeted districts.
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What is the context in which UK support is provided?
A. Context and need for UK intervention
Inclusive Growth and the tourism sector
Nepal is going through a prolonged post conflict period. The economy was severely affected
by the ten-year conflict and is still suffering from political instability and insecurity. Real growth
rate has remained low at around 1.5% for the last ten years. The incidence of poverty is higher
in the rural areas where there are limited employment opportunities outside agriculture. The
high incidence of youth unemployment was seen as one of the reasons for the conflict in Nepal
and is critical for concluding the peace process. The growth potential of the manufacturing
sector is limited and there are a very few other sectors where Nepal has a comparative
advantage. Tourism in one of the few sectors where Nepal does have a natural comparative
advantage and growth potential. It is already an important sector in terms of contribution to the
GDP, export earnings and jobs.
The direct contribution of Tourism to GDP in 2011 was NRs 53.5bn (£390m or 4.0% of GDP).
Forecast is to rise by 4.7% in 2012.This primarily reflects the economic activity generated by
hotels, travel agents, airlines and other passenger transportation services and restaurant and
leisure industries directly supported by tourists and their supply chains. Tourism generated
412,500 jobs directly in 2011 and this is forecast to grow to 428,000 in 2012. Visitor exports
are a key component of the direct contribution of Travel & Tourism. In 2011, Nepal generated
NRs 8.6bn or £62.7m in visitor exports. In 2012, this is expected to grow by 2.8%, and the
country is expected to attract 747,000 international tourist arrivals (World Travel and Tourism
Council – WTTC, 2012).
Within the tourism industry the trekking sector has the strongest potential to directly benefit the
poor in relatively remote parts. It is estimated that the trekking sector provides direct
employment to at least 20,000 (Trekking Agency Association of Nepal - TAAN Annual Report
2012) people. Nepal’s tourism industry, having survived a difficult period during the conflict, is
now well placed to exploit the ‘peace dividend’ and is already enjoying a strong resurgence
with record numbers of international tourist arrivals and strong growth in trekking.
In spite of its potential, at present Nepal’s tourism industry (and therefore the benefits to local
people which are derived from it) is concentrated in a ‘tourism triangle’ comprising Kathmandu
valley, Pokhara and Chitwan, and the trekking industry in three established trekking
destinations of Annapurna, Sagarmatha (Everest) and – to a lesser extent – Langtang. Of the
132,929 recorded trekkers in 2009, 86% travelled to these three small geographical areas.
DFID’s Strategic Priorities
This intervention builds from DFID’s strategic priorities. DFID Nepal has made wealth creation
one of its primary areas of focus1 consistent with DFID’s Business Plan (2011-15). DFID’s
Private Sector Development Strategy (2009) emphasises private sector-led intervention in
sectors to benefit the poor through enhanced incomes as jobs.
Government of Nepal Priorities
Using tourism as a mechanism to reduce poverty and protect environmental resources in
rural mountain communities directly supports the Ministry of Tourism and Civil Aviation
(MoTCA) Tourism Policy 2065, Tourism Vision 2020, and the Nepal Tourism Year 2011
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DFID Nepal Operation Plan 2011-14
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campaign. The GoN Policy and Program 2065/66 (2009/10) are committed to ‘developing
new tourist destinations to provide economic benefits while preserving the natural and
cultural heritage of the country’.
Evidence Underpinning Intervention
DFID Nepal supported the Tourism for Rural Poverty Alleviation Programme (TRPAP) during
the period 2001-05. This programme is seen as a pioneering programme in linking tourism
with the poor2. Though this programme suffered due to the insurgency it demonstrated that
livelihoods can be improved and poverty reduced by the community's involvement in local
tourism development activities. TRPAP contributed to shaping Nepal’s sustainable tourism
policies. TRPAP succeeded in providing village women and the poor with access to
resources, increased livelihood opportunities, and improved income.
The final evaluation of TRPAP commissioned by UNDP did, however, highlight as ‘lessonslearned’ the relatively weak engagement with the tourism business community during
planning and implementation which undermined the market-orientation (and therefore
subsequent marketability) of products developed within the context of the programme. The
GHTDP has addressed this by developing strong partnerships with the private sector
throughout programme implementation.
The Intervention
The Great Himalaya Trail Development Programme (GHTDP) addresses the fact that a large
part of the country and its people have not benefited from tourism. The objective of the
programme is to support tourism to drive sustainable development and poverty alleviation
through the creation of an iconic tourism product for Nepal - the Great Himalaya Trail (GHT).
The GHT spans the entire length of the country – from Humla in the West to Kanchenjunga in
the East – providing a significant boost to the tourism industry and its associated support
sectors, channelling tourists and investment in under-developed districts, and stimulating a
wide range of production, income and employment opportunities for impoverished local
communities. In this phase the GHTDP is contributing to economic development in 5 of
Nepal’s most remote mountain districts (Humla, Dolpo, Gorkha (including Manaslu),
lower Solukhumbu and Taplejung). This phase of the Programme was considered an
interim strategy that would be part of a wider DFID supported tourism programme.
Section A: Detailed Output Scoring
Output 1: Marketing and promotion of the GHT improved.
Output 1 score and performance description:
During the first year of the programme, Output 1 has exceeded targets. Activities have
concentrated on branding and marketing the entire GHT: building market awareness of the
GHT as a major new tourism attraction for Nepal and as one of the world’s great treks. Year 2
will build on this platform, while focussing on creating and marketing unique product packages
and brand identities (consistent with the broader GHT brand) for the 10 sections/destinations
which comprise the GHT. Through this work, the GHTDP is helping government and industry
partners establish strong foundations for long-term, sustainable growth of the GHT, and as a
stimulus for business, employment and income generation opportunities for host communities
along the trail.
Lessons Learnt: Nepal’s Experience Implementing Sustainable Rural Tourism Development Model, UNDP and
GoN. 2006.
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All tour operators interviewed noted:
a) the invaluable contribution of the GHT brand in positioning a new, safe and peaceful image
of Nepal to the world having recently emerged from a protracted period of conflict; and
b) the excellent work done by the programme team and partnership in positioning media
articles in a far more extensive range of outlets than would otherwise have been achieved.
Tourists (and the tour operators/trekking agencies which bring them) provide the market for
tourism related goods and services in target districts and their spending while in the
destination stimulates broader economic growth. Building awareness of, and demand for, the
GHT and its component products and destinations is therefore an essential requirement for
the programme to meet its objectives in terms of income and employment generation. The
objective of Output 1 is to improve the marketing and promotion of the GHT in order to
increase the flow of tourists beyond Nepal’s established trekking destinations. It is also noted
that in any tourism programme there is a substantial time-lag between launching new tourism
products and tourists arriving in the destination. The process typically takes a minimum of 18
months. For this reason, branding and marketing activities have been ‘front-loaded’ in the
programme, with Output 1 constituting one of the major focus areas of the GHTDP during the
first year.
The development and implementation of the GHT Marketing Strategy has been conducted as
a capacity-building exercise, with the GHTDP team working with – and through – MoTCA,
Nepal Tourism Board (NTB) and Trekking Agency Association of Nepal (TAAN), all of which
have fully endorsed and taken ‘ownership’ of the marketing strategy and are committing some
of their own resources to promote the GHT.
Indicator 1.1: Increased media coverage of GHTDP and GHT
Coordinated branding, marketing and promotional work, building brand awareness of the GHT
and its component destinations, and products has resulted in very high levels of media
coverage both within Nepal and in key global target markets.
 More than 100 international media articles published in 2011/2012 as a direct result of
improved marketing of GHTDP team, partners and stakeholders.
 800% increase in international media coverage from GHT pilot project (2008-2010).
 In addition to extensive coverage in travel and tourism-related publications, the GHT
has achieved extensive coverage in the mainstream media, with articles appearing in
National Geographic Adventure magazine, The Guardian, Die Welt Online, Spiegel
Online, BBC.com, The Telegraph, Washington Post, Etihad Airways inflight magazine,
The Sydney morning Herald and others.
 GHT Marketing strategy launch and official launch of GHT in September 2012 (World
Tourism Day) in cooperation with GHTDP partners also received international media
coverage.
 German public television channel - Arbeitsgemeinschaft der öffentlich-rechtlichen
Rundfunkanstalten der Bundesrepublik Deutschland (ARD), the equivalent of the BBC
in Germany has committed to produce a 3-episode documentary on the GHT starting in
2013.
 Press conference organised jointly with NGCCI (Nepal German Chamber of Commerce
and Industry) and Nepal Tourism Board for Caravan, Motor und Touristik (CMT) travel
fair in Stuttgart, Germany, January 2012.
 Press conference organised jointly with Nepal Tourism Board at Internationale
Tourismus Börse (ITB) travel fair in Berlin, Germany, March 2012.
 Presentation given to UK-based travel writers at a special reception organised by the
Nepalese Embassy in London, March 2012.
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Nepal Tourism Board supported the organisation of Business-to-Business (B2B)/press
events in Eastern European markets which specifically highlighted GHT.
Strong growth in traffic on the GHT official website since its launch with an average of
115,000 page views per quarter.
Online Communication Strategy including re-launch of GHT website has been
developed and is currently being implemented in close partnership with the private
sector e.g. TAAN who is taking the lead.
Substantial national and international media coverage of the GHT Climate Smart
Celebrity Trek in the period Jan-April 2012, including articles dispatched by
international news agencies Associated Press (AP), Agence France Presse (AFP) and
Xinhua.
More than 30 articles published in national media in 2011/2012 (YTD April 2012) as a
direct result of improved marketing of GHTDP partners and stakeholders.
Milestone 1: GHT marketing strategy endorsed & being implemented by NTB, MoTCA
and/or TAAN
 Fully Achieved.
Milestone 2: 25% increase in the number of international media articles on GHT in target
publications/locations and international hits on GHT website/international
media articles on GHT in target (aggregated).
 There has been 800% increase in the number of international media articles on GHT in
target publications/locations and international hits on GHT website. The milestone has
exceeded by over 700%.
Indicator 1.2: Number of tour operators including target districts GHT packages in their
offer
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The Trekking Agencies Association of Nepal (TAAN) is actively promoting GHT and
GHT-branded product packages and destinations among its 800+ membership.
National tour operators and Nepal-based trekking agencies have included GHT
package offers in their programme and are using GHT brand as a marketing platform to
promote their businesses;
B2B meetings with international tour operators organised in cooperation with NGCCI
and Nepal Tourism Board at CMT, Stuttgart, Germany, January 2012, ITB Berlin,
Germany, March 2012 and in Prague, Moscow and St. Petersburg;
B2B meetings with international tour operators organised in cooperation with Nepal
Embassy in London, March 2012
On-going pro-active contacts with international tour operators in cooperation with Nepal
Tourism Board.
A rapidly increasing number of international tour operators (including a number of
market leaders) committing to include the GHT and GHT-branded product packages
offers in their product catalogues (and using the GHT brand for promotion). Examples
include:
- UK tour operator World Expeditions has concluded its first entire GHT Nepal
traverse in February 2011 and is continuing to sell GHT packages, including full
GHT Nepal traverse;
- French tour operator Club Aventure has launched a GHT package and has sold
its first trip from March-Jul 2012;
- French outbound operator Terres d’Aventure is selling the GHT traverse in
separate section trips.
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French outbound operator Allibert Trekking is offering trek packages for sections
of the GHT.
- UK operator The Mountain Company is selling GHT packaged trips to selected
destinations including Dolpa, Rara and Makalu Barun.
- KE Adventures (UK) committed to promoting GHT packages from 2012/13
season.
- Australia based tour operator Back Track Adventures is selling GHT packages
along selected sections of the GHT;
Over and above committing to sell the GHT and its component products and
destinations, market-leading tour operators are committing substantial resources of
their own to market and promote the GHT:
- German tour operator Deutscher Alpen Verein (DAV) Summit Club has
committed to an extensive promotional activity starting in 2013, worth 1 million
Euro to promote the GHT in the German market over a period of 10 years; this
includes special trips and expeditions to GHT component destinations as well as
media activities.
- Hauser Exkursionen has committed to promote the GHT in its 2013 programme
and is planning joint promotional activities in cooperation with Etihad Airways.
- Sawadee has proposed a joint marketing promotion activity in the Dutch market
and is going to include three new GHT packages to Mustang, Humla and
Manaslu with their 2013 Nepal trekking programme;
- Tour operator Intrepid Travel has approached GHTDP/Nepal Tourism Board for
joint marketing activities to promote the GHT.
Milestone 1: GHT marketing strategy endorsed & being implemented by NTB, MoTCA
and/or TAAN. GHTDP
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GHT Marketing strategy has been endorsed and is being implemented by all
partners: (MOTCA, TAAN, NTB, NGCCI, DDCs, TDCs, Local Capacity Builders,
NGOs).
Milestone 2: 50% increase in target TOs promoting GHT target district packages
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The number of Tour Operators (TOs) confirmed as promoting GHT and GHT district
packages already exceeds the 50% milestone.
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A formal survey of the numbers of TO’s promoting GHT is planned by early 2013.
Progress against expected results:
Progress regarding GHT marketing has been excellent, substantially exceeding expected
results. Very high levels of domestic and international media interest have contributed to
strong and increasing buy-in from industry within Nepal and in global target markets. The
decision by market leading international tour operators to invest substantial resources of their
own in marketing the GHT is particularly encouraging. The good marketing work being
undertaken needs to continue and assume greater focus.
Output score: A++
Recommendations:
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GHT Summit for outbound operators to leverage international markets, investments
opportunities and promotion of the new products.
Mini workshops for Nepali tour operators to raise more awareness about the scope and
collaborative partnership opportunities.
Work with journalists and TAAN to develop targeted articles on GHT.
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Ensure data collection of the TO’s promotion activities at the earliest.
Impact Weighting (%): 25
Revised since last Annual Review? No. This is the first review.
Risk: Low
Revised since last Annual Review? No.
Output 2: The ability of key partners to plan, develop and manage an inclusive tourism
sector is improved.
Output 2 score and performance description:
The objective of Output 2 is to improve the ability of key partners to plan, develop and manage
an inclusive tourism sector in Nepal by: 1) building and embedding the necessary ownership,
structures and capacity to enable long-term, effective and inclusive management of the GHT;
2) creating an enabling environment which motivates and supports industry investment and
maximises benefits for host communities.
Overall performance is exceeding targets. At the central-level the three key institutions
(MoTCA, NTB & TAAN) are engaged in productive dialogue to address and prioritise
management and planning issues related to the development and promotion of the GHT. This
is having an impact with central agencies co-financing prioritised activities at the District level.
Stakeholders are learning how to enable tourism investment and, as a result of engaging with
GHTDP planning processes are able to articulate Sustainable Tourism Action Plans (STAP)
for their districts. This is a difficult and far from perfect process, but it is clear that all key
stakeholders are committed to, and engaged, in this learning process, which will pay dividends
later in terms of sustainability.
The key challenges, relevant at both the national and district levels, which are being
addressed by Output 2 activities are:
1) Lack of proper co-ordination amongst stakeholders (between government and industry).
2) Lack of strategic framework to guide activities for investment.
3) Low capacity to plan and manage tourism development.
It should be noted that SNV’s capacity-building support is a particular focus for Output 2 to
ensure that the long-term sustainable development and management capacity for the GHT is
in place in government, industry and stakeholders.
Indicator 2.1: Stakeholders work together for inclusive tourism development
Stakeholders have begun to work together and have also contributed their financial resources
for various activities of GHT in 2011/12, some of these include:
 TAAN contribution – NRs 2,860,000 (£20,875 or 35% of the total cost) for GHT product
identification and promotion
 Participation in a fair in Stuuartgart Germany 2012 - NGCCI – NRs 2,600,000 (£18,978
or 79% of the cost and NTB – NRs 500,000 (£3,649 or 15%) and GHDTP – NRs
200,000 (£1,459 or 6%)
 NTB – NRs 4,100,000 (£29,927 or 88%) and GHTDP – NRs 726,600 (£5,303 or 12%)
for promotion of GHT through road shows in Ukraine, Petersburg Russia and USA
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National level
 Strong, effective working relations established with, and between, national partners
 All partners actively participate both in Programme Steering Committee, Programme
Working Committee and GHTDP Marketing Committee, guiding the project activities
and facilitating public-private sector coordination and collaboration.
 Appropriate roles for each of the national partners have been defined and each is
actively leading the relevant components of the programme:
MoTCA: Coordination and leadership, facilitating government support and ownership
 Joint Secretary chairs Steering Committee
 Under Secretary chairs Working Committee and Marketing Committee.
 MoTCA has committed section officers to support GHTDP implementation.
 Senior officials promoted GHT as the showcase new product for Nepal Tourism Year
2011 domestically and overseas.
 Senior officials promoting and advocating GHTDP among other relevant government
agencies.
NTB: Promotion of GHT and its component destinations to international markets
 Led in development of GHTDP Marketing Strategy, hosting all consultations and the
official launch.
 Integrated GHT marketing strategy into their marketing activity plans, pro-actively
collaborating with the programme, planning and co-financing GHT marketing and
promotion activities.
TAAN: Facilitating industry participation, ownership, investment, product development
 Organised, led and co-financed exploratory product development and mapping
expeditions to new GHT districts/districts.
 Producing and co-financing GHT branded maps of new destinations and disseminating
to TAAN member trekking agencies. Also available for purchase in shops.
 Committed to hosting and managing GHT website after conclusion of the programme.
Its staff have received online communication and web-management training for this
purpose.
 Led the stakeholder consultation process in the sensitive issue of identifying the GHT
route (MoTCA facilitated consultation with relevant line ministries within government).
 In order to help the leadership of key partners become more effective advocates for the
GHT within their organisations and wider networks, senior officials from MoTCA, TAAN
and NTB have received internationally-recognised Prince 2 project management
training and are participating in a specialist leadership training designed by SNV for
senior decision-makers. This extended programme offers personal mentoring between
trainings and has been well received.
District level
 Local capacity-builders (LCBs), selected through a process of competitive tender, have
been contracted to lead implementation of the GHTDP in their districts, supported and
guided by the GHTDP advisory team, based in Kathmandu. Each LCB is based in, and
is strongly committed to its district.
 Since July 2011, the LCBs have been undertaking comprehensive programme of
community consultation and mobilisation activities to raise awareness of tourism, and to
stimulate community inputs into the (STAPs).
 Tourism Development Committees (TDCs) have been formed or re-constituted in all 5
target districts to lead and coordinate district tourism planning.
 Members of TDCs in all 5 districts have received Basic Tourism Training (BTT), so that
they have the necessary understanding of the tourism industry to fulfil their
responsibilities as an effective planning body.
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Key decision makers and influential actors in each of the target districts are also
receiving Leadership training.
Value Chain Analyses (VCAs) have been conducted in all districts to inform Strategic
Tourism Action Plans.
The entire process of market-based, district level sustainable, inclusive tourism
planning has been documented in a series of 3 manuals to be used as a tool for other
districts not currently benefitting from GHTDP support. The manuals cover VCAs
(research and analysis), capacity building of TDCs, and Strategic Tourism Action
Planning. The first two have already been published; the final one is currently being
edited for publication.
Milestone:
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MoTCA, NTB and TAAN have made policy and/or planning changes to
reflect lessons learnt from GHTDP.
This milestone is for December 2012. The programme is on track to achieve it.
Indicator 2.2: Tourism related (inclusive) strategies and plans have been developed and
implemented
National level
 SNV/GHTDP has been requested by MoTCA to support the development of a national
Strategic Tourism Action Plan. Implementation was planned to commence in the
second quarter of 2012, but was delayed due to transfer of senior staff. It is now
expected to commence in the second half of 2012 with preliminary analysis being done
currently.
District level
 STAPs for Humla and Dolpo were developed during the pilot project. Recommended
actions from these STAP's have now been incorporated by the two DDC's into their
annual District Development Plans (DDP's). The DDCs have allocated funds to support
implementation and contribute to a better enabling environment for tourism
development in the destinations.
 STAPs for the three new districts Gorkha, Solukhumbu and Taplejung have been
drafted, adapted/approved on the basis of validation workshops with national industry
and government stakeholders in Kathmandu, and finalised in June. DDC Gorkha has
formally approved the Gorkha STAP with implementation commencing in July. Approval
of the STAPs for Lower Solu and Taplejung by their respective DDCs is expected in
July.
Milestone: STAPs for the three new districts are developed and adopted.
 All STAPs developed; Gorkha adopted, Taplejung and Solukhumbhu expected to be
adopted within July. Implementation already started in Humla and Dolpa districts.
Progress against expected results:
Despite the challenging political environment in which the programme is being implemented,
progress in Output 2 has been very good. There is excellent opportunity for Tourism strategy
development led by the Government and the Private sector. The programme has succeeded,
at both the national and district levels, in facilitating:
- Near unanimous support across the political spectrum.
- Substantially improved partnership and collaboration between government and
industry in planning and management of the GHT.
- Improved coordination between key stakeholders (e.g. MoTCA, NTB and TAAN at
national level; DDC, Chamber of Commerce, tourism associations, government line
agencies at district level).
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A stronger role and voice for industry representatives in GHT planning at the
national level, and tourism development planning in target districts.
A strong sense of ownership over the GHT among the national partners, which are
integrating GHT development into their annual plans and co-financing activities.
Output score: A+
Recommendations:
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Work proactively with GoN and the private sector on the development of the Tourism
Strategy or Action Plan.
DFID funded Center for Inclusive Growth (CIG) and Investment Climate Reform
programmes and GHT to ensure that the tourism work shares lessons and explores
investment opportunities to complement each other if possible.
Impact Weighting (%): 25
Revised since last Annual Review? No
Risk: Low
Revised since last Annual Review? No
Output 3: Market oriented tourism business along the GHT developed
Output 3 score and performance description:
The output is on track. As outlined above for Output 2, a valuable tourism planning and
management process is underway at the district level in each of the five target districts. The
STAP planning process has greatly helped in terms of identifying and addressing the training
needs of local actors – whose capacity building is:
a) critical to facilitating the (tourism) product and service development process;
b) ensuring that locals know how to receive and service tourists; and
c) lower the product and service prices to make these emerging areas more price sensitive
and competitive with the established trekking routes.
Activities implemented under Output 3 of the programme are designed to stimulate and
support the development and growth of successful, market-oriented tourism-related
businesses, and to help host communities along the trail identify and successfully harness
high-potential production, income and employment opportunities within the tourism value
chain. This value chain encompasses not only direct opportunities in the tourism industry
(accommodation, restaurants, tea shops, guiding, cooking, pottering etc.) but also in the many
support sectors (agriculture, transport, handicrafts etc.) which benefit from tourism.
The key challenges being addressed by Output 3 activities are:
1) tourism businesses lack the quality expected in international markets;
2) promotion of GHT packages for the industry to market;
3) local product and service providers lack sufficient information about, and access to,
markets.
To address these challenges and ensure that interventions are targeted effectively, the
programme is:
 Mapping locally available goods and services.
 Working in close partnership with the trekking industry to accurately understand
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demand for goods and services in each district.
Through awareness-raising, skills training and facilitation, help existing and new
MSMEs in target districts develop/adapt/improve their goods and services to more
accurately meet market demand.
Building demand for locally-produced goods and services within the trekking industry
Facilitating business-to-business (B2B) and business-to-consumer (B2C) links
between local producers and the trekking industry (consumers).
Indicator 3.1: Number of MSMEs in target district showing significant changes in their
business practices
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A comprehensive range of activities have been conducted to ensure that MSME support
is accurately aligned to market demand and resources are allocated where they will have
maximum impact, including:
- An extensive data set has been compiled for the entire national GHT route, including
existing goods and services. Existing and prospective trekking routes and itineraries
have also been documented/developed for sharing with industry partners through
TAAN.
- Saleable routes have been identified for all 3 new districts with entry and exit points.
- MSME and technical vocational education training (TVET) manuals developed during
the pilot phase have been revised, up-dated and expanded.
- A partnership is being developed with the EC-funded, global High Impact Tourism
Training for Jobs & Income (HITT) programme - which is developing new
methodologies to strengthen the planning, capacity and delivery of tourism TVET.
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All MSME’s have received the Basic Tourism Training foundation course in all 5 districts
based on best practices from the results and conclusions of the district Value Chain
Analyses and STAPs.
Milestone: Business skills/management training/support delivered to 170 potential
MSME entrepreneurs in 5 districts (with 30% of those trained women)
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663 MSME and tourism entrepreneurs (new and existing along the trail and from district
headquarter) have received Business skills/management training with 47% of those
trained are women. The milestone has been substantially exceeded.
Indicator 3.2: Tour operator and tourist expenditure on local goods and services
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In response to direct requests from tour operators and trekking agencies for more
detailed information about the trekking itineraries and available goods and services
along the GHT and in the new districts/destinations, the entire GHT has been mapped,
and a GIS-based database developed including:
- Trekking itineraries, including walking distances, directions, altitudes, difficulty of
the treks, entry and exit points, how to get there and away etc.
- Attractions along the trail and breaking down the whole GHT into sellable packages,
including marketing
- Locally available goods and services related to tourism (lodges, restaurants, etc.)
 Value Chain Analyses (VCA) of all 5 target districts completed, with current tourism
expenditure documented and mapped. These analyses identify where greatest
opportunities for business, jobs and income-generation exist, and therefore where
GHTDP/stakeholder interventions should be targeted for maximum pro-poor impact.
Each VCA feeds directly into the relevant district’s STAP.
 A strategy has been developed for rolling out Responsible Travel Nepal (RTN) training
and support to trekking companies promoting GHT target districts (this is based on a
successful RTN pilot project that SNV implemented. A partnership with Travelife (which
has an extensive network of outbound tour operators in Europe seeking responsible
products in destinations) has been agreed to support implementation.
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Milestone 1: RTN action plans developed.
 RTN plan developed. Implementation (training of companies) to commence in second
half of 2012.
Milestone 2: 10% increase in the value of local goods and services purchased by
Kathmandu based TOs and tourist discretionary expenditure (aggregated) along
prioritised routes in target districts.
 On track in pilot districts (see details in Section B 1.6: ‘Annual Outcome Assessment’)
 Too early in the programme and tourism development cycle to ascertain outcomes in
the three new districts. The review team felt that this is a very ambitious target set for
the first year and needs to be revisited against the PM&E framework.
Progress against expected results:
Output 3 activities are progressing well. Strong foundations have been put in place to enable
tourism companies and host community MSMEs along the trail to maximise the benefits they
will derive from the results of the Output 1 and Output 2.
With assistance from Overseas Development Institute (ODI), the GHTDP has developed a
methodology to measure tourism-related increases in income and employment at the district
level. The methodology adopted captures district and village-level expenditure by trekking
agents. As noted above and as supported by international evidence the overall contribution to
income and employment benefits will only be tracked at the end of the programme, due to the
inevitable time lag between implementation and outcome measurement.
Output score: A
Recommendations:


Review the log frame indicators and milestones and ensure the PM&E framework is realigned with it.
Expedite data collection for the PM&E framework to report against key output indicators
and milestones.
Impact Weighting (%): 30
Revised since last Annual Review? No
Risk: Medium
Revised since last Annual Review? No
Output 4: Improved social and environmental outcomes in targeted districts.
Output 4 score and performance description:
The output is on target. Overall progress on social and environmental outcomes is
satisfactory. From interviews undertaken with a range of stakeholders it is apparent that a
range of useful activities are being undertaken under both of these programme areas – while
the review itself was limited in time and scope, it is noted that:
a) work with the radio stations has been especially effective at raising awareness of tourism
planning and management issues (which is helping to ready communities for receiving
tourists); and,
b) the training undertaken at the district and village levels is reaching a receptive and wide
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audience that is gender and caste sensitive.
GHTDP has collected and analysed disaggregated information on gender and
minority/disadvantaged groups’ participation in key activities of the programme. Figures reveal
overall 31% female participation in all activities; similarly overall 55% participants are from
minority and disadvantaged group (janjati and dalits). On the environmental sub-indicators,
environmental surveys are conducted and awareness training is organised; stakeholder
consultations started for formulation of activities (sub-projects) on environmental aspects in
the programme districts. Tourism Education & Awareness Programme (TEAP) radio
programmes have been effectively implemented in all five programme districts in collaboration
with local FM stations.
The GHTDP also provided funding to a programme partnership with the Himalayan Climate
Initiative (HCI) and, specifically, a celebrity trek spanning the length of the GHT that led to a
firm linkage with the climate change agenda by key Government and private sector
stakeholders.
4.1 Social indicators
Gender Empowerment: the PM&E framework stipulates that at least 30% of the activities
should disproportionately benefit women across the various outputs. Female representation in
different trainings conducted by GHTDP was 31% until June 2012:
Minority/disadvantaged group empowerment: This indicator is used to measure inclusion
of disadvantage groups including women and low caste communities (janjati, Dalit) and in
GHTDP programme. The distribution of trainees by caste is as follows: Brahmin/Chhetri –
45%; Janajati – 51%; and dalits – 4%.
Milestone 1: Identification of focus areas along priority routes in each of the five
districts.
 Achieved
Milestone 2: 20% improvement in performance relative to baseline.
 Data not yet available.
Review team felt this is too ambitious target set for the first year of operation.
4.2 Environmental indicators
 Environmental Surveys have been conducted in all 5 programme districts. Two
Environmental Indicators have been selected as stipulated in the PM&E framework for
programme districts.
 Solid Waste Management: Environmental Surveys identified the need for
improving local practices in solid waste management as the first step in improving
environmental sanitation and cleanliness of the areas to attract more tourists.
 Clean energy access/use: this indicator is selected based on the importance of
clean energy for bringing positive impact on lives of women and men along the
trails through: improvements in heating and cooking technologies; reduced inhouse pollution; and reduced reliance on forests as the main source of fuel.
The programme has prepared solid baselines with pictorial descriptions of the current status of
environmental sanitation; consultations with Renewable Energy stakeholders have begun; and
Training of Trainers (ToT) on Tourism Environment Awareness Programme has been initiated.
Milestone 1: Identification of focus areas along priority routes in each of the five
districts.
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
Achieved
Milestone 2: 20% improvement in performance relative to baseline.
 Data not yet available. Too early to track.
Progress against expected results:
Overall progress regarding Gender Empowerment has been satisfactory with an average of
31% female participation in all GHTDP activities (against a target of 30%). The percentage of
female participation is considerably higher in the components where the GHTDP and Local
Capacity Builders have higher level of influence in setting criteria for selection of participants
(such as for MSMEs selection where female participation is as high as 45% and 43% in Hotel
Management training). The environmental component is also progressing well with two clear
and practical areas of work being focused which will contribute to both environmental and
tourism promotion outcomes.
Output score: B
Recommendations:
The programme had difficulties to recruit a PM&E advisor. With this capacity now in place the
programme team urgently needs to strengthen the recording, analysing, documentation and
dissemination of gender and social inclusion data. The programme should also revise the
terminology of the social sub-indicators as follows as the current terminology is too broad and
ambiguous. For example:
Replace “Gender Empowerment” with “No of women skilled/trained” (disaggregated); and
“Minority/disadvantaged group empowerment” with % of representation and participation of
socially excluded groups (disaggregated by caste and social groups).
Impact Weighting (%): 20
Revised since last Annual Review? No
Risk: Medium
Section B: Results and Value for Money.
1. Progress and results
Has the logframe been updated since last review? No (but it will be)
No. However it is recommended that the log-frame be up-dated for realistic indicators and
milestones align the PM&E framework that has just been developed.
1.2 Overall Output Score and Description: A+
1.3 Direct feedback from beneficiaries
In the limited time available, the review team consulted with central-level agencies (MoTCA,
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TAAN, NTB, individual trekking companies) and district-level actors (DDC, TDC, Chamber of
Commerce, MSME actors). While many actors were not aware as to the full extent of activities
underway at the centre, district and village levels – all Nepali-actors were strongly supportive
of the steps being taken to:
a) strengthen and promote the actors and agencies involved in the institutional
environment;
b) build the multi-dimensional product and service base; and
c) Continue to communicate the GHT brand to the international market.
All tour operators interviewed noted the invaluable contribution of the GHT brand in positioning
a new, safe and peaceful image of Nepal to the world having recently emerged from a
protracted period of conflict. Feedback from the private sectors (tour operators, TAAN and
NTB) and district level actors strongly appreciate the variety of vocational and basic industry
training being delivered at the district level, which helps lower the price of product packages
sold to out-bound agents making them more competitive with the established and conventional
trekking destinations.
Further, all partners value the high quality of the leadership training they have received; and,
confirm the fundamental need for responsible tourism planning and management skills to be
passed to actors at the DDC and VDC levels – without this training (which no other actors
provide) tourism development in these areas simply would not take hold, and there are few if
any development alternatives open to these remote and impoverished communities.
Private sector actors, Ministry staff and local stakeholders are also seeking: a) greater control
and oversight over programme budgets; and, b) requesting programme funds to finance small
infrastructure projects for sustainability – a number of actors notably trekking agencies and
district level stakeholders, called for the GHT to include a small infrastructure budget (for
porter’s shelter, water supply, trail bridges maintenance, support to lodges development in
rural areas) for maximum success of the programme. These were few if any substantive
criticisms of the programme. All key actors appreciated the leadership and industry knowledge
training they have received.
Some trekking agencies also revealed an interest on their part to invest in lodge chain
development. An interview with the IFC’s program manager also made clear the IFC’s SME
investment program is further source of potential funds for entrepreneurs interested to invest
in GHT related projects as is Center for Inclusive Growth’s work in Pokhara.
Recommendation:
It is therefore recommended that further attention be given to:
a) Explore possibility of complementing GHT with IFC and CIG activities.
b) Include representatives of other donor/development programs such as IFC, CIG, GIZ
and ICIMOD in regular GHTDP briefings or donor coordination meetings to build
synergy and the likelihood of additional investment for the GHT private sector.
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1.4 Summary of overall progress
The programme is making very good progress. All output indicators are being achieved, or
exceeded, in all areas except those relating to data collection, and aggregated social and
environmental measures, where delays have arisen in relation to recruiting an experienced
and qualified PM&E advisor. The programme is arguably Nepal’s best designed and executed
tourism programme to date. There are a number of factors relevant to this proposition, namely
the GHTDP:





is focused upon a unique and exceptionally strong brand;
has strong private sector linkages – and, critically, is centred around facilitating
business and enterprise linkages at each step of the many different product and
service supply chains;
builds upon extensive experience and lessons learned from previous tourism projects
in Nepal most notably the TRPAP;
enjoys strong political and government support at the centre and district levels – from
across Nepal’s fractured and divided political parties;
key actors and agencies in Kathmandu have a far greater knowledge and a much
deeper understanding of responsible tourism planning and management systems than
was present 10-15 years ago.
1.5 Key challenges
1) Political instability and frequent changes of government leads to delays in programme
implementation. Lack of political leadership in the districts (with no elected bodies for
several years) - slows and complicates decision making as consensus needs to be built
between political parties.
2) Mixed capacity of national programme partners e.g. MoCTA, NTB and TAAN.
3) Limited capacity of GHTDP implementing partner organisations in the districts (‘local
capacity builders’).
4) Sustainability – all stakeholders have expressed strong reservation of the 2 year time
frame of such a complex programme and expressed fear that the excellent achievement
will not be sustained if the programme ended in the present end date.
5) Private Sector leverage - The project should explore opportunity for GHT to help leverage
investment and matching funds.
As a result Stakeholders requested:



Continuation of the GHDTP – To expand and sustain current achievements.
Support small infrastructure funds - all beneficiaries stressed the need for funding
small infrastructure in the new product destinations for sustainability of the good work
initiated that is not part of the present phase.
Support in the development of a National Strategy led by the GoN and the Private
Sector.
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1.6 Annual Outcome Assessment
The time-lag between launching new tourism products / destinations and tourists arriving in
the destination mean that it is too early to document impacts at the Outcome level just after
one year of the programme. However, emerging outcome level impacts in the two pilot
project districts of Humla and Dolpo provide indications of what can be expected. Surveys
of those who received GHTDP training and support indicate:
 In the pilot phase 100 MSMEs trained in Humla and Dolpa. The net additional jobs has
increased by 1.2 in average with an average increase in annual income by NRs
110,000 (£ 802).
 Increased business links between local agents and Kathmandu-based trekking
agencies resulted in an average 65 % increase in the number of trekking groups
received by local agents
[N.B. The small pilot project budget allowed very limited marketing and promotion of the destination. It is
anticipated that growing market demand for the GHT-branded products and destinations (evidenced by highly
encouraging Output 1 indicators) resulting from the GHTDP’s marketing and promotion will substantially
increase these impact of the programme as visitor numbers in target destinations grow in the following years].
2. Costs and timescale
2.1 Is the project on-track against financial forecasts: Yes
The programme is on track against the financial forecast. The programme has demonstrated
good forecast and expenditure progress against targets. The contribution allocated for the
development of the tourism strategy may need to be reviewed against GoN’s timescale
towards the end of this financial year.
2.2 Key cost drivers
The key cost drivers are from procurement of services. On VfM and savings, the GHT team
has been able to successfully negotiate reasonable fee rates and expenses making
substantial savings e.g. the project saved Nrs 3,098,060 (£ 22,613) for STAP development in
Taplejung, Gorkha and Solukhumbu and NRs1,293,905 (£ 9,444) for training with Leadership
Training Alliance Nepal.
2.3 Is the project on-track against original timescale: Yes
3. Evidence and Evaluation
3.1 Assess any changes in evidence and implications for the project
The PM&E framework is being revised and will provide better evidence of the effect of the
GHT programme on poverty reduction and lessons emerging from the programme.
3.2 Where an evaluation is planned what progress has been made?
A formal evaluation is not planned for this phase, but if longer term support is provided then a
formal evaluation should be included. However a formal survey of the numbers of TO’s
promoting GHT is planned in early 2013 that will present evidence of the impact of the
programme.
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4. Risk
4.1 Output Risk Rating: Medium
4.2 Assessment of the risk level: Medium
4.3 Risk of funds not being used as intended
Low. This is a direct Accountable Grant funding. SNV has robust financial management and
programme monitoring in place.
4.4 Climate and Environment Risk
Climate and environment risks are low and opportunities high. The Climate and environment
risks and impact awareness raising was conducted through the GHT Climate Change Trek –
which was very successful.
5. Value for Money
5.1 Performance on VfM measures
This project has performed well against economy, efficiency, and effectiveness measures.
Economy: The programme has performed well within the existing budget through excellent
planning. It has also been able to obtain co-financing for product development through costsharing with TAAN. The leverage from trade fairs has been effective and cost sharing with
TAAN has been very effective (refer Output 2; indicator 2.1).
Efficiency: The programme is one of the best designed tourism of its kind. It has been able to
obtain buy-in from a range of critical players particularly, the GoN and the private sector that
has aided in the smooth operation as well as ownership of the programme.
Effectiveness: As noted it is too early to judge the overall effectiveness of the programme but
in just the first year of the project period it has exceeded some of its targets so the indications
are good of overall impacts being achieved.
5.2 Commercial Improvement and Value for Money
The programme has been able to recruit competent staff and consultants who have delivered
excellence in the first year. SNV follow rigid, open and transparent selection process for local
partners and consultants even for small contract. Consultants input time/days are also closely
monitored.
5.3 Role of project partners
SNV has been the key implementing partner along with the Ministry of Tourism who chair the
Steering Committee and the private sector e.g. TAAN who is proactively collaborating in
product development and marketing and NTB in promoting GHT. The DDCs are involved in
developing the STAPs and the facilitating the TDCs.
5.4 Does the project still represent Value for Money: Yes
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5.5 If not, what action will you take? N/A
6. Conditionality: None
6.1 Update on specific conditions: None
7. Conclusions and actions
The first year of operations of GHTDP has been encouraging. There is broad agreement
among all GHT partners – MoCTA, NTB, TAAN, SNV and DFID – that the GHTDP is the best
designed and executed tourism programme in Nepal to date. A strong collaboration amongst
the GoN, donor and private sector is also an evidence of the success of the programme.
Whilst the current programme is on track, the programme team should ensure that the
recommended actions are taken.
At a broader level, with a life-span of just two years, the GHTDP is an extremely short tourism
intervention. The review and an independent analysis of the GHT (Refer Issues, constraints
and looking ahead report (2012). P Rogers) have clearly identified that there is a need and
opportunity to continue and/or intensify engagement in GHT. GHTDP has already established
an excellent product and working well on the ground and internationally. In order not to lose
the achievements the review team recommends that support to GHTDP is extended for a
further 2-3 years. This potential and modality should be explored as soon as possible due to
the current end date of the programme (15 June 2013) so that a proper sustainability plan or a
responsible exit is agreed in a timely manner.
In agreeing to support the GHTDP in the first instance DFID had anticipated continuing this
support through the Nepal Market Development Programme. Based on the findings of this
review it is recommended that this option now be investigated in more detail.
8. Review Process
The review was led by the Lead Adviser for the GHTDP supported by the DFID Private Sector
Development Adviser and Programme Officer, in co-ordination with the Government, the
project team and the private sector stakeholders (TAAN and NTB). A specific financial and
administration review confirmed the robustness of the systems and compliances being
employed. The findings are based on extensive consultations with project staff, Government
staff, TAAN, TOs and NTB representatives supplemented by a field trip to Gorkha and
analysis of progress against agreed outputs and their associated log frame indicators. The
review has also been informed by the independent analysis of the GHT (Refer Paul Roger’s
Issues, constraints and looking ahead report (2012).
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