Instructions to help complete this template:
Before commencing the annual review you should have to hand:
 the Business Case or earlier project documentation.
 the Log frame
 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 Scale
Outputs substantially exceeded expectation
Outputs moderately exceeded expectation
Outputs met expectation
Outputs moderately did not meet expectation
Outputs substantially did not meet expectation
A++
A+
A
B
C
What support is the UK providing?
The UK has provided a grant of £2,436,274 to SNV (the Netherlands Development
Organisation) for the period from July 1 st 2011 to Dec 2013 (this includes the
£491,000 provided for the inception phase and
£130,000 for additional infrastructure in 2012). The project period has just been extended from July to December 2013 to complete all of the activities.
What are the expected results?
The GHT seeks to
“increase the incomes of 1,072 micro, small and medium enterprises by
US$1.21 million and create 2,251 jobs by 2013 ” .
Outcome
To spread tourism benefits more widely and inclusively in five Great Himalaya Trail (GHT) districts of Nepal (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.

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 peace process compounded with complications of political, social, legal and administrative transitions. The economy was severely affected by the ten-year conflict (1996-2006) and is still suffering from transitional instability and insecurity. Nepal’s economic growth rate has remained low at around 2 % for the last decade or so. The incidence of poverty is higher in the rural areas where there are limited employment opportunities outside traditional agriculture. The growth potential of the manufacturing sector is limited and there are a very few other sectors where Nepal has a comparative advantage. Tourism is 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 total contribution of tourism to GDP (including wider effects from investment, the supply chain and induced income impacts) was NPR147.2bn or £1.008bn in 2012 (9.4% of GDP) and is expected to grow by 7.4% to NPR158.2bn or £1.083bn (9.8% of GDP) in 2013. The direct contribution of tourism to GDP in 2012 was NPR67.2bn or £460m (4.3% of GDP) and is expected to rise in 2013. This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines, restaurant and leisure industries directly supported by tourists and other transportation services. Similarly, the total contribution of tourism to employment was 1,255,500 jobs in 2012 (8.2% of the country’s total employment). This is expected to increase by 7.1% in 2013 to 1,344,500 jobs (8.5% of total employment). Tourism generated 553,500 jobs directly in 2012 (3.6% of total employment) and this is expected to grow by 7.0% in 2013. (Source: World Travel and Tourism Council
– WTTC, 2013).
Within the tourism industry the trekking sector has the strongest potential to directly benefit the poor in relatively remote parts (by providing employment to unskilled people as porters and support team). The recent tourism trend and government policy has focused on diversifying tourism to new and unexplored areas to benefit rural communities. The scoping mission led by
DFID through Adam Smith International (ASI) in Feb 2013 also identified trekking as one of the most important subsectors for creation of additional jobs and income in those areas.
In terms of tourist arrivals, in the last few years Nepal has recorded strong annual growth. Total international visitors reached 796,946 in 2012 compared to 736,000 in 2011, an increase of
8.9%. Nepal appears to have recovered strongly from the global slowdown in tourism triggered by the global financial crisis and it appears that the trend of strong growth of tourist arrivals will continue in coming years. Nepal has enjoyed strong growth in arrivals over the last few years.
Tourists/Visitors flow in the destinations 1 :
Based on above background and tourism context in Nepal, we estimate the following increase in tourist arrivals compared to 2009 baseline.
1 The Great Himalaya Trail Development Programme project document (2009)

Net additional trekker numbers in targeted 5 GHT districts due to project intervention
(Base Year: 2009)
Years
Districts 2009 2010 2011 2012 2013 2014 2015
Humla
Dolpa
0
0
29
26
61
54
95
85
131
117
169
151
210
188
Gorkha/Manasalu
Lower Solukhumbu
0
0
41
21
85
44
131
68
182
94
235
122
292
152
Taplejung 0 13 26 41 56 73 91
Total 0 131 270 420 580 751 933
Net Arrivals calculated as:
Arrivals WITH project subtracted by Arrivals WITHOUT project
The table below reveals a total of 11,434 tourist arrivals in 5 programme districts which is a significant increase compared to 2009:
Districts
Humla
Dolpa
Gorkha
Lower Solukhumbu
2009
1177
1052
1635
0
Years
2010
1633
1143
2162
0
2011
1758
1205
2813
2069
2012/13
1800
1690
4268
3025
Taplejung 508 488 591 651
Total
Source: Data collected from the district entry points and arrivals by air.
11,434
DFID’s Strategic Priorities
This intervention aligns closely with DFID’s strategic priorities. DFID Nepal has made wealth creation one of its primary areas of focus 2 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. DFID plan to scale up its investment in tourism with an expanded GHT programme that will focus on “market led” tourism in 2013/14 building on the achievements made by this project to date.
Government of Nepal Priorities
Using tourism as a mechanism to reduce poverty and protect environmental resources in rural mountain communities directly supports the Tourism Policy 2065 (2008/09) and Tourism Vision
2020 (Vision document identifies GHT as one of the key new products that have broader scope to rejuvenate the tourism sector in Nepal). The GoN Policy and Program 2069/70 (2012/13) document commits to ‘developing new tourist destinations to provide economic benefits while preserving the natural and cultural heritage of the country’. Currently, the Government of Nepal
Ministry of Culture, Tourism and Civil Aviation (MoCTCA) is in the process of developing a
National Strategic Tourism Plan aligned to Tourism Vision 2020 in consultation with national, regional and local tourism actors with support of GHTDP. The project document has been completed with support from United Nations World Trade Organisation (UNWTO) and is expected to be completed by December 2013. It is estimated to cost US$300,000. The cost will be shared by MoCTCA Rs. 2 million
(£13,698) for current fiscal year and Rs. 5 million
(£34,246) for coming fiscal year, NTB Rs. 5 million (£34,264) in coming fiscal year and GHT
£120,000. The MoCTCA and the Steering Committee has requested for continued UK support and wider intervention in the tourism sector to accelerate economic growth and poverty
2 DFID Nepal Operation Plan 2011-14

reduction in the remote areas. A scoping review was done by DFID through ASI, in collaboration with government and stakeholders in February. The review considered the feasibility of continued programmatic support in this area and recommended options for continuity of the programme. DFID and the steering committee will agree next steps soon.
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 poor 3 . Though this programme suffered due to the insurgency it demonstrated that livelihoods can be improved and poverty reduced by community 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 a
‘lessonlearned’ 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. Furthermore, the programme has engaged tourism actors (public, private, local government and communities) in addressing systemic issues effectively. For example, community users groups were formed to construct bridges and trails in Taplejung
District and were directly involved in day to day monitoring of construction works. Similarly homestay committees have been formed in various other areas of Nepal.
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 Darchula/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, while 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 five 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 part of a wider DFID supported tourism programme. A scoping review was conducted in February which recommended consolidating the GHT programme, building on the achievements and successes of the GHTDP into the Nepal Market Development programme (Samarth - NMDP). The GHT has been extended to December 2013, to allow completion of present activites and transition of GHTDP into NMDP.
Output 1: Marketing and promotion of the GHT improved.
Output 1 score and performance description:
Output 1 has exceeded targets. Activities concentrated on branding and marketing the entire
3 Lessons Learnt: Nepal’s Experience Implementing Sustainable Rural Tourism Development Model, UNDP and
GoN. 2006.

GHT worked particularly successfully with the private sector and government. This has been an important contribution to sell new tourism product nationally and internationally. The programme has built market awareness of the GHT as a major new tourism attraction for
Nepal and as one of the world’s great treks. Year 2 built 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 of the GHT. Currently, individual GHT destination brands and logos are being developed in an extensive consultation process with stakeholders from each of these 10 sections/regions. Through this work, the GHTDP continues to support the 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.
Partners have recognised the invaluable contribution of the GHT brand in positioning a new, safe and peaceful image of Nepal; and the excellent work done by the team and partners in positioning media articles in a far more extensive range of outlets than would otherwise have been achieved.
Output 1 constituted one of the major focus areas of the GHTDP during the second year too.
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 – MoCTCA,
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
The following branding, marketing and promotional work has helped raise awareness of the
GHT and its component destinations as Nepal’s new iconic product including very high levels of media coverage both within Nepal and in key global target markets:

From June 2012 to June 2013, more than 70 international media articles published as a direct result of improved marketing of GHTDP team, partners and stakeholders.

International media coverage included articles appearing in mainstream media such as
German weekly newspaper (ZEIT)
, Süddeutsche Zeitung, The Guardian, The Sydney
Morning Herald, Jet Wings, The Australian, Nurnberger Nachrichten, LIFT, the
Telegraph, Oman Tribune, National Geographic, etc.

More than 60 articles published in national media between 2011 to 2013 as a direct result of improved marketing of GHTDP partners and stakeholders.

Nepal Tourism Board organised a road show to four cities in the United States of
America in June 2012 offering international tour operators, travel agents and media/press about new products in Nepal which highlighted
GHT as one of Nepal’s signature products.

GHT has been included in Nepal Tourism Board
’s mainstream international marketing and promotion activit ies in cooperation with Nepal’s Foreign Embassies and private sector partners.
 A “World Trail Network” has been formed in Korea with participation of GHTDP as an active founding member.

The Great Himalaya Trail Nepal Facebook Page, has a recorded number of more than
19,500 followers e.g. a weekly reach of more than 75,000 at peak times (YTD, May
2013).

Re-launch of the official GHT website in line with the GHT Online Communication
Strategy and development of the GHT website into an online brand and active

marketing platform for the entire industry in partnership with the private sector (NTB and TAAN);

Joint media familiarisation trips organised in cooperation with international tour operator
Hauser Exkursionen, Germany in December 2012 (a leading adventure and trekking tour operator in the German-speaking markets). Articles appeared in German national dailies/weekly DIE ZEIT, Süddeutsche Zeitung and regional newspaper s.

Local media familiarisation trips organised to Humla, Gorkha and Taplejung in May
2013 especially to profile the development work of the GHT (Kantipur Daily, Nepali
Times, Annapurna Post, Abhiyaan and Ujyaalo 90 Network). This resulted in diverse development stories and promotion of the GHTDP through English and Nepali newspapers and online (radio).
Milestone 1: GHT marketing strategy endorsed and being implemented by NTB, MoTCA
and/or TAAN

Fully Achieved.
Milestone 2: 50% 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).

Milestone exceeded target by over 392%. There has been a 442% increase in the number of international media articles on GHT in target publications/locations and international hits on GHT website. In the last two years 179 media publications have been achieved against the baseline of 33 during the pilot phase. (reference to www.thegreathimalayatrail.org
)
Indicator 1.2: Number of tour operators including target districts GHT packages in their
offer

The Trekking Agencies Association of Nepal (TAAN) has scaled up promotion of the
GHT and GHT-branded product packages and destinations among its 800+ membership. Targeted articles were invaluable in promoting the GHT locally.

Back 2 Back meetings with international tour operators organised in cooperation with
Nepal Tourism Board in USA (five states), June 2012.

Familiarization Trips for 9 international tour operators organised from November 2012 to May 2013.

On-going pro-active contacts with international tour operators in cooperation with
Programme and Industry partners.

Increased number of international tour operators (including a number of market leaders) included GHT and GHT-branded product packages offers in their product catalogues
(and using the GHT brand for promotion)::
- UK/Australian tour operator World Expeditions is continuing to sell trekking packages for the entire GHT Nepal traverse as well as for single sections.
- French outbound operator Allibert Trekking is committed to launch new trekking packages to remote areas including Kanchenjunga and Lumba Sumba pass.
- UK operator The Mountain Company (TMC) is selling GHT packaged trips to selected destinations including Dolpa, Rara and Makalu Barun. Participating in the
GHT familiarisation programme in May 2013, TMC is committed to include new trekking packages to Humla in its programme.
Australia based tour operators Back
Track Adventures and Raw Travel and German tour operator s (Berghorizonte,
DAKS) are selling GHT packages along selected sections of the GHT.
UK operator
Lost Earth Adventure is promoting GHT on its website and has started to include new

remote area trekking packages under the GHT label. In 2013 Lost Earth Adventure
- Similarly, some international tour operators are promoting new packaged treks e.g.
German tour operator DAKS is promoting Kanchenjunga and a lodge-based Manaslu
Circuit trekking; Swiss tour operator Globotrek and Dutch tour operator VNC to
Humla and DimSum has launched packages to Lower Solukhumbu, Manaslu, Dolpa and Humla; US-based tour operator Sacred Earth Adventures, to Manaslu.
- Over and above committing to sell the GHT and its component products and destinations, German market-leading tour operator Hauser Exkursionen are committing substantial resources of their own to market and promote the GHT: they promoted GHT in its 2013 programme including promotional event in cooperation with Etihad Airways and trekking agencies all over Germany, and organised a
German press familiarisation trip to Nepal in December 2012. NTB and TAAN cosponsored part of the expenses of these trips.
- Locally in collaboration with TARA Air/Yeti Airlines (private airlines operating its services mainly to GHT destinations in Nepal) GHT has just agreed an in-flight promotion of GHT through its boarding passes.

Additionally, different activities and events have taken place as a ripple effect of GHT promotional activities in and outside of Nepal:
- Inclusion of GHT in the curriculum in a Singapore University.
- Renowned cyclist Pushkar Shah and the team cycled along the GHT on their own for promotion of GHT.
- With the aim of raising fund for charities, UK Army personnel, Doc McKerr has traversed the combined higher and lower GHT in 2013 (completed in June 2013).
This event brought considerable media coverage in the UK.
- Katja Staarjes, a renowned Dutch mountaineer has traversed the Upper GHT and has been promoting GHT worldwide by giving presentations and talking about GHT and Nepal during her visits. She also promotes GHT through her website www.katjastaartjes.nl/uk/ & www.greathimalayatrail.nl/
- More information on other such initiatives are documented and posted at http://thegreathimalayatrail.org/news
.
Milestone 1: GHT marketing strategy endorsed and being implemented by NTB,
MoCTCA and/or TAAN.
Achieved . GHT Marketing strategy endorsed and is in line with GHT marketing strategy. The stakeholders in programme districts have also prepared district brand and promotional strategies.
Milestone 2: 75% increase in target TOs promoting GHT target district packages
Target exceeded. The number of Tour Operators (TOs) confirmed as promoting GHT and GHT district packages already exceeds the 75% milestone. In addition, 19 international and local agencies are promoting GHT and/or sections on their own initiative. Data needs to be collected as soon as possible.
Progress against expected results:
Progress against results is excellent, and this output has substantially exceeded expected results . GHT is now branded globally as Nepal’s new iconic product and is being sold worldwide by national and international trekking industries, amateur trekkers and tourism institutions e.g. TAAN, NTB as well as the media. This has led to strong buy-in from industry within Nepal and in global target markets.
Output score: A++

Recommendations:

Consider housing GHT website within the private sector and make necessary arrangements including training provision. GHT team to co-ordinate with relevant stakeholders and DFID immediately so that when project phases out, this can be continued successfully through the private sector.

Branding of the ten sections has been developed well and needs to be promoted locally and internationally by all partners so there is continuity to sell these sections.

Mini workshops for Nepali tour operators to raise more awareness about the scope and collaborative partnership opportunities should be conducted before programme closure.

Team to work with journalists, TAAN and NTB to develop few targeted articles on GHT.

Data collection of the TO’s needs to be done urgently e.g. by Aug/Sept 2013.
Impact Weighting (%): 25
Revised since last Annual Review? No.
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:
Overall performance is exceeding targets . The GHT team has worked proactively with
MoCTCA, NTB & TAAN and have facilitated productive dialogues to address and prioritise management and planning issues related to the inclusive development and promotion of the
GHT.
One of the challenges, relevant at both the national and district levels, continues to be the lack of proper co-ordination amongst stakeholders (between government and industry). The GHT has influenced the work of MoCTCA to agree and support the development of a new tourism strategy and plan. Ministry of Tourism is leading this process and has set aside its own budget to develop a national tourism strategic action plan (Nrs 7m
; £47,000). The collaboration from the private sector is also notable with NTB providing Nrs 5m or £34,000. The strategy, when finalised will provide the overall vision to guide tourism and development activities, improve co-ordination with multiple stakeholders to leverage further investment from the government, private sector and the international community to help boost Nepal’s urban and rural economic growth through tourism.
In the districts, stakeholders are learning how to enable tourism investment and, as a result of engaging with GHTDP the districts now have approved Strategic Tourism Action Plans
(STAP). Districts have also implemented small infrastructures with joint financing arrangements among key actors (GHT, local government bodies, private sector associations, other programmes, etc.). Although this is a small scale support in this phase of GHT, it has been able to make a significant difference to trekkers and should be an integral part of promotion and product development for future investments.
SNV’s capacity-building support has played a major role to ensure that the long-term sustainable tourism development and management is in place within government, industry and stakeholders. This momentum should be continued in any forthcoming tourism programme.
Indicator 2.1: Stakeholders work together for inclusive tourism development

Given the strong buy in of the GHT product, many stakeholders have co-financed various activities of GHT in 2011/12 and 2012/13 which was not originally planned:

Marketing and promotion (International Tourism Fairs and Road shows): GHTDP contributed £6,762 (11%); NTB, TAAN and others £59,316 (89%); and TAAN provided
£20,875 (35%) of the total cost for GHT product identification and promotion in 2011/12; in 2012/13 TAAN contributed NRs 1m
(£6,000) for tourism exploration trips in Dolpa and Humla.
 Enabling Environment: GHTDP contribution £150,576 ; AEPAAN and government contributed £286,876

Trainings for Small and Medium Entrepreneurs: GHTDP contribution £13,215; Nepal
Trust, Rotary Club of Colorado and participant themselves contributed total £37,615

Of the total NRs 2m
(£13,000) needed for renovation and preservation of Kharpunath area in Humla, the local partner in Humla has been able to arrange joint financing of
NRs 0.7m (£4,700) from GHTDP, NRs 0.8m (£5,400) from Karnali Tourism
Development Board and remaining NRs 0.5m
(£3,000) from the local organisations.
National level

The Steering Committee and the Programme Working Committees have guided the project activities and facilitated public-private sector coordination and collaboration.
This has established strong and effective working relations with, and between, national partners that will be crucial for future development efforts.

The role of the Steering Committee will be important to manage the transition of the
GHT programme and to complete the tourism strategy and action plan.
MoCTCA: Coordination and leadership, facilitating government support and ownership

Apart from chairing the Steering Committee and the oversight function, MoCTCA is playing a key role in promoting GHT to showcase this new product of Nepal domestically and overseas. It has included GHT as one of the new products in the
Tourism Vision 2020 document which is a major step to leverage other funding.

MoCTCA is leading the formulation of national strategic tourism action plan aligned to the Tourism Vision 2020 by bringing together all important tourism sector stakeholders in the process; the Secretary himself is leading the steering committee of strategic plan development and GHTDP is facilitating the process
– through provision of resources for national and UNWTO international consultants. This has strengthened the proposition of the formal recognition of GHT.
NTB: Promotion of GHT and its component destinations to international markets

Leads the development of GHTDP Marketing Strategy, hosting all consultations and the official launch.

Integrated the GHT marketing strategy into their marketing activity plans, pro-actively collaborating with the programme, planning and co-financing GHT marketing and promotion activities.

Incorporating GHT in NTB publications (annual reports) and promotional materials;

Dissemination of GHT promotional and marketing materials in national and international tourism fairs and festivals.

Co-sponsoring important familiarisation trips of international journalists, travel writers and tour operators’ to Nepal.
TAAN: Facilitating industry participation, ownership, investment, product development

Organised, led and co-financed exploratory product development, new routes

identification, upgrade of current trails etc. including mapping expeditions to new GHT districts/districts e.g. Dolpa and Humla explorations were completed in 2012/13.

Producing and co-financing GHT branded maps of new destinations and has played a crucial role in disseminating this to member trekking agencies.

TAAN is one of the potential organisations to host and manage the GHT with NTB website after conclusion of the programme in Dec 2013. TAAN staffs have received online communication and web-management training for this purpose.
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.

Tourism Development Committees (TDCs) and sub-committees have been reconstituted in all 5 target districts to lead and coordinate strategic district tourism planning.

GHTDP-supported leadership learning programme was delivered in 5 programme districts and at the central level. About 60% of the participants attended all 4 modules aimed at developing leadership. Reflections and feedback are positive from majority of the participants on quality and coverage of the module contents.
Milestone: MoCTCA, NTB and TAAN have made policy and/or planning changes to
reflect lessons learnt from GHTDP.
Target Met. Decision to develop a National Tourism Action Plan agreed. Government has completed the first round of review to formulate the strategy. Value Chain Analysis completed.
Lessons will be integrated in the design ohe new National Tourism strategy under design.
Indicator 2.2: Tourism related (inclusive) strategies and plans have been developed and implemented

At both the national and district level, upon request of MoCTCA SNV/GHTDP has supported the development of Strategic Tourism Action Plans.

In March 2013, MoCTCA has approved the process and activities for the formulation of the national plan. It engaged the UNWTO to carry out initial stakeholders’ consultation for developing the project document. The Steering committee will guide this process and include all stakeholders for consultation during design.

The Ministry plan to contribute Nrs 2m
(£12,000) this fiscal year. Further support will be provided by NTB and GHT. At the district level, recommended actions from Strategic
Tourism Action Plan's have now been incorporated by the 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.
Milestone: STAPs for the three new programme districts are developed and adopted.
Exceeded Target. STAPs in all three new programme districts developed and implemented including successful additional co-financing of activities recommended that was not envisaged earlier
Progress against expected results:
Progress in Output 2 has been very good. The strong Government leadership of the Tourism strategy development and collaboration from NTB is very encouraging. The programme has succeeded, at both the national and district levels, in facilitating:

continued support of GHT nationally and internationally.


improved partnership and collaboration between stakeholders.

A strong sense of ownership over the GHT among the national partners, e.g. the inclusion of GHT as a new tourism product in the Tourism Vision 2020 by the government of Nepal and leveraged financial resources from stakeholders.
Output score: A+
Recommendations:

Completion of the National tourism strategy. GHT to support fully.

The strong partnership approach and tourism development platform created both at national and district level has to be continued by stakeholders so that the existing momentum is not lost.

Given the multiple stakeholders involved in tourism development, it is recommended to continue similar working modalities in any future tourism programme designs, to ensure maximum co-ordination and mutual capacity building both at the national and local level.

Investments in local capacity and local ownership are necessary to enhance substantial benefits from tourism at the local level – a key lesson for future programmes. Future programming should build on the multi-dimensional product and service base with national and local focus; and continue to communicate the
GHT brand to the international market.
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. Activities implemented under Output 3 of the programme have stimulated the development and growth of successful, market-oriented tourism-related businesses, and helped local communities along the trail identify and successfully harness high-potential production, income and employment opportunities within the tourism value chain. This value chain encompasses both the direct opportunities in the tourism industry
(accommodation, restaurants, tea shops, guiding, cooking, pottering etc.) as well as the support sectors (agriculture, transport, trade, handicrafts etc.) which contribute to and also benefit from tourism.
Key achievements have been as follows:

Completed mapping of locally available goods and services along identified trails and sub-trails working in close partnership with the trekking industry to accurately understand demand for goods and services in each district.

Helped existing and new MSMEs in target districts develop/adapt/improve their goods and services to more accurately meet market demand by providing awareness-raising, skills training and facilitation.

Supported in creating opportunity for locally-produced goods and services within the trekking industry. GHTDP in collaboration with TAAN and Nepal Academy of Tourism and Hotel Management provided trekking guide training to 54 participants from all 5 programme districts in 2013, 86% of the trained personnel are already employed in trekking agencies and tour operators.

Indicator 3.1: Number of MSMEs in target district showing significant changes in their
business practices
A comprehensive range of activities to align MSME to market demand and resources have been conducted:

TAAN developed trekking trail map of all five districts and shared with its partners for promotion. TAAN also developed trekking a guide book, promotional DVD, and posters for awareness among its members .
Last year, saleable routes were identified for all three new districts with entry and exit points. Now their GPS data with points of interests, major attractions, availability and status of goods and services are available via Google maps.

In partnership with the EC-funded, global High Impact Tourism (HITT) Training for Jobs and income programme, HITT and GHT have developed new methodologies to strengthen the planning, capacity and delivery of tourism training modules with facilitation kits. Based on this, facilitation guides and manuals have been developed and published in partnership for homestay management by local communities.
 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. They have also received vocational skill trainings.

In Humla the number of MSME’s (tea shop owners, hoteliers etc) along the GHT trail has increased by 70%. There is also significant increase in purchase of local goods and services (vegetables, doko, mule services, etc.) by the tour operators.

In Dolpa the capacity building and skill enhancement of over 100 MSMEs was achieved. This included local guide training, cooking and lodge management. Similarly, the number of MSMEs involved in tourism enterprises increased by approx. 35%, and more than 80% of the MSMEs trained by GHT are running their local businesses smoothly.
Milestone: Business skills/management training/support delivered potential 1072
MSME entrepreneurs in 5 districts (with 30% of those trained women)

On track. 749 MSMEs and tourism entrepreneurs (new and existing along the trail and from district headquarter) have currently received business skills/management training,
47% of those trained are women which exceeded targets.

This year, all five programme districts started 52 homestays (208 beds) mostly managed and run by women entrepreneurs with support from GHTDP. This has provided additional income and employment for them and their family members.

Based on the total tourist arrival in these districts (11,434 tourists) until 2013 May 4 ; it is estimated that 2,333 MSMEs have benefited from tourism related businesses.
 Similarly, Advisors and Auditors’ Training for Trainers (ToT) for accommodation sector was completed for 15 participants in partnership with Travelife.
Indicator 3.2: Tour operator and tourist expenditure on local goods and services

All familiarisation trips supported by GHTDP utilized services of local tour operators and the programme emphasized use of locally available goods and services related to tourism (lodges, restaurants, camp sites, porters, guides, mules, etc); the availability of these services at local levels are reported to be of good quality and reliable and this
4 GHTDP impact calculation document 24 Jan 2011.
(using the calculation method of 4.9 tourists benefit to 1 MSME).

trend is improving.
Milestone 1: Responsible Tourism Nepal (RTN) action plans developed.

Achieved. Responsible Tourism Nepal (RTN) programme developed, withimplementation (training of companies) commencing at the beginning of 2013.
In total, 85 travel companies and 40 hoteliers completed the Travelife training. Similarly, an Auditors’ Training for Trainers (ToT) on accommodation sector for 15 participants completed in partnership with Travelife. Follow-up consultations are on-going.
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. GHTDP will conduct sample assessments in programme districts in Aug-Sept
2013 against the baselines (conducted in 2011) for inclusion in the Project Completion
Report (PCR) in October 2013.

Infrastructure development for improving access and market linkages: this has been done on a small scale with the support of the private sector and local authorities. These small infrastructures will create opportunities for local entrepreneurs to improve access to, and linkage with, tourism markets. At the same time - through improvement of the trail/sub-trail and small crossings and bridges - trekkers
’ safety is also being improved.

Starting in 2012 additional support was provided through GHTDP, to renovate the earthquake damaged trails and bridges in Taplejung. This was extended to other districts in early 2013 with additional financial support from DFID. Alternative energy and water supply have been benefiting the community, women in particular, as well as improved services for the tourists. It has also reduced impact on local forest and use of fossil fuel. This initiative has complemented the outcomes of Output 1 with provision of better facilities for trekkers in the GHT districts. The infrastructure development programme has been supported fully and demanded by DDC and communities. This has resulted in better, safer trails and facilities, encouraging more trekkers which subsequently benefits the local communities in very remote districts
Key activities include construction of bridges, micro hydro, trails construction and maintanence, green houses,water supply schemes sola system, information centres, sign postings etc., in all the 5 programme districts that have provided a much better and safer facilities.
Total Estimated beneficiaries of infrastructure development in the GHT districts
District No. of Households No of population
Taplejung
Solukhunbhu
Gorkha
Dolpa
Humla
Total
5,390
2,287
5,031
1,159
2,959
16,826
27,633
11,292
23,121
4,568
12,348
78,962
Note: estimation on the basis of population of VDCs and in catchment areas directly utilising the facilities .
Progress against expected results:
Output 3 activities are on track . Strong foundations have been put in place to enable tourism companies and host communities and MSMEs along the trail to maximise the benefits they will derive from the results of Outputs 1 and 2. Progress related to the small infrastructure projects is on track and will be completed by Aug/Sept 2013.
Output score: A
Recommendations:


It is recommended to carry out a thorough impact study immediately to feed into the
PCR.

Completion of all activities in the districts. And the lessons derived from the GHT should be documented and shared with stakeholders.
Impact Weighting (%): 30
Revised since last Annual Review? No
Risk: Low
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; some milestones need to be accelerated given this was recommended in the last review e.g. impact assessment and data collection. However, a range of useful activities are being undertaken under both of these programme areas:
At district level LCBs and TDCs have organised environment awareness activities with joint financing from local bodies and programmes. In Dolpa, collaborative efforts are made by pooling resources from World Wildlife Fund, Women Development Office and District
Chambers. Similarly, in Solu, Gorkha, Humla and Taplejung various such activities are conducted jointly with local clubs and organisations.
Environmental sensitivity is one of the criteria for selection and implementation of small infrastructure activities supported through GHTDP with additional financing. Various independent observers, professionals and ministry have appreciated GHTDP’s contributions for improving small infrastructure and facilities along the trail.
4.1 Social indicators
Gender Empowerment: Achieved. Female representation in different trainings conducted by
GHTDP was 33% until June 2013.
Minority/disadvantaged group empowerment: The distribution of trainees by caste is as follows: Brahmin/Chettri – 43%; Janajati – 52%; and Dalits – 5%.
Milestone 1: Identification of focus areas along priority routes in each of the five
districts.

Achieved: GESI assessment and audit conducted in all five districts with context specific recommendations for targeted interventions for women and socially excluded groups’ empowerment being undertaken. Assessment and audit reports are available in the GHT website for public use and reference. This will be instrumental for any future design of work in remote areas.
Milestone 2: 20% improvement in performance relative to baseline.

Not achieved. There has been a delay in data collection, documentation and analysis.
Tough hard data is not yet available; progress reports from programme districts clearly indicate increase in number of women entrepreneurs and a gradual improvement in income and employment of women entrepreneurs along the trails and sub-trails.
Recent familiarisation trips and independent articles from journalists have indicated such growth in Humla, Gorkha, Taplejung and Lower Solu. Women entrepreneurs are

the key drivers in the start of homestays in Humla (7 households
– 28 beds), Gorkha
(21 households – 84 beds), Lower Solu (14 households – 56 beds) and Taplejung (10 households – 40 beds); GHTDP has provided homestay management trainings, accounting and book keeping, cooking, etc for improving performance of these homestays.
4.2 Environmental indicators

Solid Waste Management: Small infrastructure projects supported by GHTDP include activities related to solid waste management and environmental sanitation along the identified trails and sub-trails.

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. Small infrastructure projects supported by GHTDP include activities related to clean energy initiatives such as micro hydro and solar home systems along the identified trails and sub-trails.
Milestone 1:
districts.

Achieved
Identification of focus areas along priority routes in each of the five
Milestone 2: 20% improvement in performance relative to baseline.

Data not yet available. The programme team should expedite this activity urgently.
Progress against expected results:
Overall progress regarding Gender Empowerment has been satisfactory with an average of
33% 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 good with various small to medium sized activities designed and implemented jointly with local organisations and agencies in the areas of environmental cleanliness, solid waste management, provision of waste disposal pits and dustbins along the trails.
Output score : B
Recommendations:

Conduct performance assessment and data collection to track performance urgently to provide evidence.

Ensure continuity of GESI focused support programme to design and implement new phase.
Impact Weighting (%): 20
Revised since last Annual Review? No
Risk: Medium

1. Progress and results
Has the log frame been updated since last review?
No. As recommended by the last review, small infrastructure component was added to the GHTDP activities and progress on this component is satisfactory.
1.2 Overall Output Score and Description: The overall weighted output score is A+ .
Of the four outputs, 1 scored A++; 2 scored A+, 3 scored A and 4 scored B.
1.3 Direct feedback from beneficiaries
Based on the formal and informal feedback received from key stakeholders throughout the implementation of the programme, GHTDP contribution is regarded as quite important for the development of remote regions. Within MoCTCA, GHTDP is one of the projects that has brought together all types of tourism actors (public, private, NGOs, associations and donors) which is important to enhance coordination and bridge the missing links. A recent scoping mission led by ASI confirmed that the trekking sub-sector has significant growth potential which, if realised, will in turn create numerous income opportunities for unskilled men and women. Stakeholders noted that DFID has an extensive track record of support to the tourism sector development in Nepal, notably through the previous TRPAP and now the GHTDP and they have demanded scale up with more support to improve infrastructure activities.
Further, all partners value the high quality of the leadership training they have received from the project team and confirm the fundamental need for responsible tourism planning and management skills to be passed to actors at the DDC and VDC levels.
There is a huge interest and positive response to a responsible tourism approach, from the accommodation/hospitality and service industry, which indicates a good scope for improving quality of services through adoption of RTN principles and practices.
Private sector actors have highly appreciated the leadership and industry knowledge training they have received with the support of GHTDP. They suggest further support to enhance their roles in promoting tourism for poverty reduction. It has been encouraging to see clear evidence of how GHT has leveraged substantial government and private sector funding that was never envisaged at the programme design. This has been a remarkable joint achievement. A number of actors’ - notably trekking agencies and district level stakeholders - have fully supported the GHT to successfully implement small infrastructure activities that have enhanced tourism promotion and development in
GHT districts.
Some trekking agencies have expressed an interest on their part to invest in lodge chain development. However, due to limited timeframe of this phase, this has not been possible to date. Stakeholders have requested continuation of the GHDTP processes and results – to expand and sustain current achievements – including through greater
‘private sector’ focus and continuation of support to small infrastructure. There are possibilities for further marketing of the GHTDP achievements and leveraging funds from a range of stakeholders, as well as future up-scaling through the
UK’s intention to continue funding a new tourism development programme in Nepal if agreed.
Some direct feedback from key officials and beneficiaries:
"GHT is one awesome adventure tourism brand of Nepal, should be recognised as Nepal's official brand.

GHTDP has been contributing lots to destinations for developing tourism. I would like to sincerely thank the programme and DFID for support".
Mr. Ram Kumar Shrestha, Minister, Culture, Tourism & Civil Aviation (Statement given at the Launching Programme of
Partnership Promotion of GHT through Tara Air Boarding Pass)
"GHDTP is one of the most successful tourism development programmes under MoCTCA so far and has taken a key role in implementation. I, myself feel more proud to lead GHTDP Steering Committee for two years
(2011-12). GHT is recognized as one of the world longest and greatest adventure trekking destinations which
also include Everest region and Annapurna area within it."
(Former Chair of the Steering Committee, GHTDP)
-
Mr. Bal Krishna Ghimire, Joint Secretary, MoCTCA
"I am so grateful and proud to be part of GHTDP as a local MSME. After having business development and other capacity building training from GHTDP, I have established my own teashop combined with a retail shop and earning money for my livelihood and education of my two kids." – Women MSME of Gorkha, Laprak (Single women).
" GHTDP is one of the very successful development programmes that I ever engaged in my life. It gave me lots of opportunities for learning, developing network and enthusiasm for my future engagement to district development activities as well as my leadership career.
" – Mr. Bisheshwar Kattel, Local Leader & Former Mayor of
Gorkha Municipality; reflecting on Leadership Modules delivered by GHTDP.
" People never satisfied in life but I am very much happy with my profession that GHTDP has given me an access for career development as a local journalist and my engagement with tourism reporting. I do not have proper word to praise GHTDP how it has been contributing for developing local communities at Taplejung
District ." – Mr. Khagendra Adhikari, Local FM Journalist of Taplejung.
Recommendations: a) Ensure proper closure of GHTDP by documenting, publishing and disseminating experiences, success stories, knowledge and best practices. b) Ensure that any new tourism programme development builds on the momentum created by GHTDP – effectively collaborate with Steering Committee,
Government, DFID/ASI and tourism actors to transfer knowledge.
1.4 Summary of overall progress
The programme has made very good progress despite the short duration of implementation. All output indicators are achieved, or exceeded, in all areas except those relating to impact level data collection, and aggregated social and environmental measures; these will have to be done before GHTDP closure. Stakeholders agree that the GHTDP programme is arguably Nepal’s best designed and executed tourism programme that caters to the broader needs and interests of the tourism actors in Nepal.
Ownership by the ministry (MoCTCA) with leadership role and currently leading process of formulating National Strategic Tourism Plan (N-STAP) with support of GHTDP
– is a big success. Further to these, there are a number of factors that makes GHTDP a unique and important programme for tourism sector in Nepal:
 is focused upon a unique and exceptionally strong brand – GHT - that encompasses network of trails and sub-trails joining high mountain districts across Nepal; currently each district and regional brands are being finalised. has stronger private sector linkages and enjoys strong political and government support at the centre and district levels , across Nepal’s fractured and divided political parties: tourism is the only sector in Nepal which is able to draw consensus – as one of the sectors play ing a key role in the economic development of Nepal;
 key tourism actors and agencies in Kathmandu have a far greater knowledge and a much deeper understanding of responsible tourism planning and

management systems than in previous years.
1.6 Annual Outcome Assessment
The tourist arrival numbers in the districts continue to show substantial growth over the programme period – this implies an increase in number of enterprises and additional employment/income generated for the locals from tourism businesses in general in all five programme districts. International tourist numbers have grown steadily over the last few decades, a trend which looks set to continue. In particular, adventure tourism
(including trekking) is growing particularly rapidly. This is a vital sub-sector in Nepal, with approximately 27% of all international visitors going trekking in 2012. Such tourists are characterized by high levels of in-country spend, suggesting continued growth in this sub-sector will lead to substantial benefits for Nepal (tourism scoping review 2013).
2. Costs and timescale
2.1 Is the project on-track against financial forecasts: Yes
The programme has demonstrated good forecast and expenditure progress against targets except for the last quarter. Up to May 2013, the project expenditure has reached 87% and revised planning (including all project commitments) ensures the remaining budget has been reprogrammed to meet the expenses for extended period. GHTDP will be able to achieve
100% expenses by end of Dec 2013.
2.2 Key cost drivers
The key cost drivers of GHTDP are from procurement of services. GHTDP scores well in terms of materialising value for money in all procurement processes. Time calculations and rate negotiations are handled carefully bearing in mind for the quality and timeliness of the required services. For example, on VfM and savings, the GHT team has been able to successfully negotiate reasonable fee rates and expenses making substantial savings of
£22,613 for STAP development in Taplejung, Gorkha and Solukhumbu and £9,444 for training with Leadership Training Alliance Nepal. GHTDP has been successful in negotiating with private airlines (Tara Air) for free promotion of GHTDP through Tara Air Boarding passes.

2.3 Is the project on-track against original timescale: On track. The project had to be extended for a further six months (July-Dec 2013) to allow completion of the project activities in some remote parts of Nepal and to ensure proper embedding of GHTDP processes and results into a transition phase of a new tourism programme design.
3. Evidence and Evaluation
3.1 Assess any changes in evidence and implications for the project
No. GHT will share ideas and insights for the design of a new programme in due course. The
PCR will provide a thorough fact based on the impact assessment.
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 the next few months that will present evidence of the impact of the programme. Assessment of thematic/component wise impact will be conducted in
Aug/Sept 2013.
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 rising 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 been able to achieve excellent value of money through good planning and robust procurement process (refer outputs descriptions above) and has performed well against budget forecast.
Efficiency : GHTDP is now branded as one of the innovative national tourism programmes and has generated lots of local and international interest that is likely to leverage substantial

local and donor funding in future. It has been able to obtain strong buy-in and co-financing 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. The infrastructure work has embedded climate smart approaches in the most remote part of the country successfully.
Effectiveness: Most outputs have been met, or targets exceeded, so the indications of overall impacts being achieved are high. The programme approach and design has been commended by partners who look to GHT lessons and this has started early donor discussions for further collaboration in tourism (UK, WB, US, GIZ, IFC etc including government and private sector).
5.2 Commercial Improvement and Value for Money
The programme has been able to recruit competent staff and consultants who have delivered excellence despite the challenges of the scoping work and associated uncertainties. SNV follow rigid, open and transparent selection process for local partners and consultants even for small contracts. Consultants time/days are also closely monitored. The programme has been very effective in bringing in wide range of partners in the programme to create effective planning and implementation. They have also been able to mobilise partners’ investments into the programme. Local stakeholders e.g. government, NTB, TAAN DDC/VDC, HELVETAS,
Rural Reconstruction Nepal (RRN), TARA air have been investing in the project activities so far.
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 is proactively collaborating in product development and marketing, with NTB involved in promoting GHT. The DDCs are involved in developing the STAPs and facilitating the TDCs. They are also contributing financially for different activities, MoCTCA in NSTAP, TAAN in exploration and mapping and NTB in marketing and promotion during international fairs and familiarisation trips.
5.4 Does the project still represent Value for Money: Yes
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
Overall, most programme outputs have met expectation and some of the outputs have moderately exceeded expectations.
It is clear and visible from the results so far, this small programme has been very effective because of its partnership approach involving tourism sector actors ranging from ministry to local community as well as representatives from other sectors. The effective planning and implementation has been one of the keys for success.
GHTDP has been very much adaptive to districts needs and requirements. The stakeholders have been highly supportive and participative during the entire programme.
In order to keep momentum the following points are suggested for future plans:
1. The momentum from GHT should be continued and lessons embedded in any future

programming. As GHT is a long trail having 10 sections; during this phase, GHTDP has covered only five districts, therefore a larger programme if developed should consider expanding and/or enhancing similar activities to other districts to create credibility of entire trail and expand benefits to the entire region along the GHT.
2. The programme team should ensure a responsible exit and clear communications to stakeholders in the GHT districts.
8. Review Process
The review was conducted by the Senior Programme Manager, IWCT with inputs from the
Private Sector Development Advisers and the Programme Officer. Quality Assurance was also provided by the Results Adviser. The review built on the scoping review mission which involved rigorous consultations with the GHTDP steering committee and other donors. The
SNV team provided substantial information and evidence for the review. A larger Programme
Completion Review will be conducted towards the end of this year.