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UNWTO at G20: Putting People and MSMEs at Centre of Recovery

• All Regions
• 28 Sep 2022

UNWTO, the G20 Indonesian Presidency and the G20 Tourism Working Group have collaborated over the past year to deliver the G20 Guidelines on Strengthening MSMEs and Communities as Agents of Transformation in Tourism on the occasion of the G20 Tourism Ministers Meeting in Bali.

The Guidelines provide guidance for key policies that can create resilient and sustainable MSMEs and communities spanning five key pillars:

• Human Capital
• Innovation, digitalization and the creative economy
• Women and youth empowerment
• Climate action, biodiversity conservation, and circularity, and
• Policy, governance and investment

They also draw up over 40 cases studies from G20 members and guest countries focused on the promotion of MSMEs and communities

MSMEs and communities, the backbone of our sector, need strong support to be agents a people centred transformation

Accelerating positive action

Addressing the G20 Tourism Ministers Meeting, UNWTO Secretary-General Zurab Pololikashvili said: “Our sector has now recovered almost 60% of pre-pandemic levels. However, we are falling behind in our efforts to reach the climate action goals of the Paris Agreement. We are also behind in progress towards the Sustainable Development Goals. “

“Tourism can help us get back on track. But we need to speed up. And we need to scale up. MSMEs and communities, the backbone of our sector, need strong support to be agents a people centred transformation” he added.

The Minister of Tourism and Creative Economy of Indonesia, Sandiaga Uno said “I am truly delighted that the G20 Tourism Working Group is able to adopt the G20 Bali Guidelines. The Guidelines embody a number of policy best practices in the five main lines of actions. These lines of actions are essential to put the holistic wellbeing of our people at the heart of tourism recovery. We do not wish for tourism to just simply rebound, we need it to be better in serving the needs of our communities by creating good jobs, empowering the marginalized and safeguarding our planet, which our guidelines aim for.”

“I earnestly applaud UNWTO as the key institutional partner of our G20 presidency for steadfastly working together with us to continuously improve the Guidelines,” the Minister added.

Skills, inclusion, sustainability and governance

The Guidelines focus among others on:

• developing targeted policies based on social dialogue and multi-stakeholder collaboration to promote vocational education and training, skills development, and lifelong learning of the tourism workforce by engaging industry and technology partners;
• stimulating entrepreneurship including through tourism business incubation and promoting the creation of decent jobs in tourism;
• strengthening linkages between the tourism sector and local communities by encouraging partnership with local suppliers;
• bridging the innovation gap and promoting responsible innovation;
• developing guidance for MSMEs to enable them to tap into digitalization, improve their products and boost their productivity through the creative economy;
• ensuring equality and non-discrimination, with particular attention to young people in vulnerable situations, promoting the application of gender-equality and equal opportunity principles for all youth in tourism including equal remuneration for work of equal value, equal participation and equal treatment;
• implementing, within respective national policy, more sustainable and environmentally friendly practices; and
• Improving tourism data, including the use of big data, the implementation of international statistical standards and the development of adequate methodology for Measuring the Sustainability of Tourism as evidence-based policy-making as well as facilitating data sharing including through public-private partnerships.

Research developed for the guidelines by UNWTO with G20 countries highlights the need to address challenges for MSMEs of lack of access to finance, lack of access to market intelligence, market uncertainty, the volatility of the workforce, changing consumer trends and needs and low levels of innovation.

For communities, the most relevant challenges include the uncertainty of the market and changing consumer trends, leakages (revenue generated by tourism in the community which does not stay in the community), lack of education and skills, lack of adequate infrastructure and governance and excessive dependence on tourism.

UNWTO at G20

Putting people and msmes at centre of recovery.

Related links

• Download the News Release in PDF
• G20 Bali Guidelines for Strengthening Communities and MSME as Tourism Transformation Agents: A People-centred Recovery
• G20 Bali Guidelines for Strengthening Communities and MSME as Tourism Transformation Agents: A People-centred Recovery – Case Studies
• World Tourism Day 2022: Rethinking Tourism

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• Leaders Speak
• Brand Solutions
• Govt & Ministry
• Tourism industry can benefit from the new definition of MSME

While announcing the first tranche of relief measures for the MSME as part of the INR 20 lakh crore stimulus package, Finance Minister Nirmala Sitharaman informed the decision to revise the definition of the MSME and raise the limit of classification based on the investment and turnover limit for Micro, Small and Medium businesses

• P Krishna Kumar ,
• ETTravelWorld
• Published On May 14, 2020 at 03:58 PM IST

Although the travel and tourism industry in the country was not much-enthused by the first tranche of stimulus package announced by Financial Minister Nirmala Sitharaman yesterday and still maintaining “it’s too early” kind of attitude as more announcements are expected in the coming days, the industry watchers feel that the travel, tourism and hospitality industry can also benefit from the new definition of the MSME and the decision of the government to eliminate the distinction between the manufacturing and sector sector distinction. While announcing the first tranche of relief measures for the MSME as part of the INR 20 lakh crore stimulus package announced by the Prime Minister , the Finance Minister informed the decision to revise the definition of the MSME and raise the limit of classification based on the investment and turnover limit for Micro, Small and Medium businesses. Advt Experts feel that these decisions will work in the benefit of the travel, tourism and hospitality businesses in the country to receive the additional collateral-free liquidity support announced by the government. The Finance Minister had announced a INR 3 lakh Crore collateral-free automatic loans for MSME businesses through banks and NBFCs. This Emergency Credit line to businesses will be available to the tune of 20% of entire outstanding credit as on Feb. 29, 2020. All MSME businesses which have up to INR 25 cr outstanding and INR 100 cr turnover can avail this facility. These emergency credit line have a 4 year tenor with one year moratorium on principal payment. “This will certainly help the service sector with limits on investment and turnover including the travel and tourism businesses can qualify as MSME and gets entitlement for up to 20% outstanding loan as on February 29 as additional loan to resume operations. This comes with a cap on interest rate and tenor of 4 years including moratorium of one year,” said Anoop Bali, President, TFCI . “We are waiting for sector specific relief, if any. However, the hotel companies that quality under MSME’s would be benefited by today’s announcement. Some good incentives on PF contribution by the government and loans with a moratorium of one year with interest capping are good steps,” said Mandeep S Lamba, President South Asia, HVS Anarock. Advt However, the first set of INR 20 lakh cr. assistance announced by the Finance Minister evoked mixed response from the tourism, hospitality and allied sectors. The absence of any interest free loan assistance or lack of direct assistance to support the salaries of the employees of organisations resulted in disappointment of people in the MSME package. “80% of our members are small operators with turnover in the range of INR 2 to to 5 cr. Salaries and other expenses are a key issue,” said a senior functionary of Indian Association of Tour Operators (IATO). “The economic package offered will not suit anyone in the MSME. It will only impose another INR 3 lakh cr loan burden on the shoulders of entrepreneurs,” said another entrepreneur in the hospitality business. Whille revising the classification criteria, the government has put businesses with INR 1 cr investment and turnover of INR 5 cr in micro; investment of INR 10 cr and turnover of INR 50 cr in small and businesses with investment of INR 20 cr and turnover of INR 100 cr in the medium industry category.

• By P Krishna Kumar ,
• Updated On May 14, 2020 at 03:58 PM IST

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• 20 lakh crore stimulus package
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