Request_for_Information_Moldova_Tourism.pdf

57/1 Banulescu Bodoni St., ASITO 5th Fl., 2005 Chisinau, Moldova. Phone: +373 (22) 20-1800; Fax: 23-7277;

http://moldova.usaid.gov

REQUEST FOR INFORMATION (RFI)

Subject: Request for Information No. RFI-MOL-19-002 Issuance Date: April 23, 2019 Issued by: USAID/Moldova Issuing Contracting Officer: Maria Televantos Closing Date: May 07, 2019, by 17:00 Chisinau time

Reference: The ONE MOLDOVA Tourism Industry Development Program

USAID/Moldova is in the process of designing the new “ONE MOLDOVA Tourism Industry Development Program” for implementation in Moldova. We are seeking public comments on the DRAFT Statement of Work to inform that design process. Responses to this request for information are not binding on the U.S. Government and do not obligate USAID to issue a solicitation, nor does it commit USAID to pay any cost incurred in the preparation and submission of comments.

Brief Description

The overall goal of this five-year program is to further stimulate the transformation of the Moldovan tourism sector into an engine of economic growth, leading to higher living standards for rural Moldovans in the long term, while concurrently cultivating greater national pride in the Moldovan identity and strengthening social cohesion.

Requested Information:

USAID/Moldova invites the public to submit comments on the DRAFT Statement of Work (SOW), including, but not limited to, comments on feasibility of activities and the most appropriate contracting mechanism. These comments will be taken into consideration in the design of the final activity. We have provided the draft SOW in English (Annex A) and Romanian (Annex B). The English language version of this draft SOW shall prevail in case of any inconsistencies with the translated version.

Comments must be submitted to Maria Televantos, Regional Contracting Officer, and Armen Karapetyan, Acquisition and Assistance Specialist, via email to mtelevantos@usaid.gov and akarapetyan@usaid.gov. The subject line must read “The ONE MOLDOVA Tourism Industry Development Program Comments,” and comments must be submitted no later than May 08, 2019 at 5:00 PM (Chisinau Local Time).

http://moldova.usaid.gov/

RFI-MOL-19-002

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ANNEX A

Statement of Work

The ONE MOLDOVA Tourism Industry Development Program Unlocking Moldova’s National Cultural Heritage

Overarching Vision

The development of the Moldovan tourism industry has the potential to directly impact sustainable local economic development, decrease the migration flows, stop the fast depopulation of Moldova’s rural areas, and serve as a platform for the growth of other industries, including wine, agriculture and other services. In order to unlock the potential of the tourism sector and transform it into a driver of economic development, Moldova needs to emerge as a world-class cultural heritage tourism destination featuring a wide ranging cultural tourism product that includes archeological, cultural, historical and religious tourism among others, and promoting Moldova as a tourism destination beyond its wineries. The preservation, strengthening, and promotion of all aspects of the national heritage must be a key feature of Moldova’s responsible1 tourism sector, both for reasons of national interest and because of its power to attract the culturally-curious and higher-spending foreign visitor market. Investment in an expanded tourism infrastructure, paired with the development of compelling tourism narratives and an improved enabling environment supporting the competitiveness of the tourism sector, could jumpstart this emerging industry resulting in a significant injection of investment and income generation in Moldova’s rural regions.

Moldova’s cultural, linguistic and ethnical diversity is a valuable asset, however to date this diversity has hampered the emergence of a strong Moldovan identity, as evidenced by weak social cohesion amongst Moldova’s diverse living cultures. Given this challenging context, a common understanding of the underlying causes of the dividing and unifying forces in society has yet to be reached; the development of the national tourism sector could present an opportunity to forge unity out of diversity, by building a greater understanding and appreciation within Moldova for its immense cultural and historical legacies in a way that strives for inclusivity and builds greater social cohesion.

Program objectives The overall goal of this five-year program is to further stimulate the transformation of the Moldovan tourism sector into an engine of economic growth, leading to higher living standards for rural Moldovans in the long term, while concurrently cultivating greater national pride in the Moldovan identity and strengthening social cohesion.

The implementation of the program is expected to yield the following outcomes: (a) an increase in number of annual international visitors to Moldova; (b) increased average spending by

1 Responsible tourism combines the sustainable and responsible tourism approaches of multiple organizations, including the UNWTO, World Travel & Tourism Council and the Earth Council. In following this approach, tourism development can be pursued according to a triple bottom line of maximizing social, economic and environmental benefits, thus always with the objective of ‘creating better places for people to live in, and better places for people to visit.

- 3 -international visitors translating into higher foreign exchange earnings; (c) an increase in number of days per visitor with an emphasis on attracting tourists to destinations located outside of the capital; and (d) an increased number of direct and indirect tourism-related jobs; (e) enhanced social cohesion among various ethnic groups in Moldova2.

Component 1: Unlocking the potential of Moldova’s Key Tourism Destinations3 - position Moldova as a world-class cultural heritage tourism destination, with the following subcomponents:

• Subcomponent 1.1: Upgrading of select destination hubs leading to improved tourism experiences

• Subcomponent 1.2: Mapping, researching and enhancing the Moldovan cultural heritage assets

• Subcomponent 1.3: Diversify and enhance the competitiveness of the Moldovan tourism product offering

Component 2: Expanded and Developed Source Markets, with the following subcomponents:

• Subcomponent 2.1: Branding, positioning, and marketing to enable Moldova to develop and implement strategies to attract specific target segments from key markets through collaterals, communication, and promotion.

• Subcomponent 2.2: Integrating Moldova in the cross-border regional tourism offering (Romania, Ukraine, Western Balkans) Given the relatively small size of the Moldovan tourism market and proximity and relationship to neighboring countries with much greater tourism arrivals (e.g., Romania), linking Moldovan cultural products and experiences with those of neighboring countries and routes will be extremely important to near-term growth and development of the industry.

Component 3: Enhanced Tourism Industry Enabling Environment and Local Institutional Development, with the following subcomponents:

• Subcomponent 3.1: Strengthened national tourism policies and institutions conducive to tourism industry development. Development of a long-term National Tourism Strategy setting the priorities for a sustainable tourism development with an action plan; strengthening of the key GOM actors involved in sustaining the tourism sector, such as the Ministry of Culture, Education and Research, Ministry of Economy, 2 As measured by SCORE Moldova – a Social Cohesion and Reconciliation Index methodology, developed by UNDP and USAID. The UN in Moldova launched the SCORE process to build this understanding, measure social cohesion, provide evidence to the government and other key actors, and inform well-targeted programming that can strengthen social cohesion. https://www.scoreforpeace.org/en/moldova/methodology

3 "A tourism destination is a physical space in which a visitor spends at least one overnight. It includes tourism products such as support services and attractions, and tourism resources within one day´s return travel time. It has boundaries defining its management, and images and perceptions defining its market competitiveness.” World Tourism Organization

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Moldova Investment Agency, the Office of Wine and Vine, and donor/resource alignment around key tourism sector priorities; tourism data collection and statistics strengthening; institutionalization and support to ANTRIM; and establishment of a Tourism Board within MIA to foster public-private partnerships in the area of tourism promotion.

• Subcomponent 3.2: Coordinate GOM and local stakeholder involvement to sustain the development of the tourism industry in Moldova

Component 4: Strengthened Moldovan cultural (artisan/craft) industries, including value chain assessment of artisan sector, assessment of tourism education and training strategic needs, improvement of tourism institutions’ programs, upgrading of guides, and the hospitality industry workforce to standard levels of professionalization.

BACKGROUND

Moldova has a distinctive culture, rich heritage and natural sense of hospitality, the basis for a thriving tourism economy, but suffers from severe under-investment in product development and destination promotion. Its published tourism figures are among the most modest in the world, even if they are incomplete and misleading. The direct contribution of Travel & Tourism to GDP in 2016 was MDL1.3bn (1.0% of GDP)4, which is very low by international standards. Moldova ranks 172th out of 185 countries in terms of the tourism sector’s contribution to GDP.

Employment in the sector in 2016 (the direct contribution of travel & tourism to employment, including jobs indirectly supported by the industry) was 0.9% of total employment, representing 10,000 jobs. A critical aspect to enable future sector growth is to gain a better understanding of the real size and nature of the tourist market, and the attitudes and expectations of the foreign leisure visitor. Moldova’s tourism is essentially ‘experiential’ in nature, but relies too heavily on one iconic product, wine tourism. Strategic investment is needed to diversity the Moldovan tourism product offering in the long term, to broaden the potential market and drive an increase in length of stay and revenues, especially outside of the capital.

In light of the above, the Contractor should propose a holistic value chain approach to tourism development and destination management addressing the existing tourism sector constraints and development challenges. Multiple interventions that tackle the needs of a destination are most effective when delivered in an integrated way, addressing issues ranging from policy to planning, security, access, infrastructure, and marketing. As tourism is both produced and consumed at a local or ‘destination’ level, the Contractor shall proposed a set of targeted, integrated interventions at the local level that are oriented to particular market requirements, integrated into thematic (e.g. cultural) or spatial frameworks (e.g. clusters, corridors or circuits) and supported by wider sector policy reforms. The Contractor shall propose its own technical approach to achieving the expected results under the four components, as described below.

Component 1: Unlocking the potential of Moldova’s Key Tourism Destinations

4 WTTC, Economic Impact survey, 2017

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Under this component, the Contractor shall work in partnership with the private and public tourism sector stakeholders to jointly establish a roadmap for strengthening cultural heritage management as a way of improving visitor experience and competitiveness of the tourism sector, while also helping to document and support the sustainability of the cultural assets themselves.

Simultaneously, work under this component will engender greater national pride, social cohesion, and distribute the economic benefits of increased tourism flows to small and medium enterprises.

This component shall include tourism product development or related small-scale infrastructure sub-projects development that are critical for unlocking the potential of the destinations by upgrading the quality of attractions, sites, and general visitor experience. The interventions will be informed directly by the Validation Assessment of the selected Destination Hubs and the Destination Development Plans developed under this component. Interventions under this component may also include matching grants to support the development of new or improved products and services in the tourism value chain.

Subcomponent 1.1: Upgrading of select destination hubs leading to improved tourism experiences USAID/Moldova envisions that the Contractor shall deploy an inclusive cultural tourism development approach targeting the development of a circuit of up to five-six tourism destination hubs in several strategic regions of Moldova, inclusive of Transnistria and Gagauzia. Activities under this component should be centered on unlocking the potential of the selected destinations through preservation of cultural heritage and sustainable tourism development.

Validation Assessment of the selected Destination Hubs and Destination Development Plans It is expected that by the award date of this contract, the development of a National Tourism Development Strategy would be underway or in an advanced stage of completion. In this effort, USAID will support the GOM and private sector through its current MCP activity. Following award, the successful offeror is expected to step in and take over from MCP the strategy development process, or at a minimum, lead the development of a well-articulated and actionable Action Plan for Implementing the Strategy. The Contractor shall propose its technical approach and methodology for analysis, selection and vetting process of the selected destination hubs with key public and private stakeholders, including with central and local governments. Within 180 days of award, the Contractor shall perform a Validation Assessment of the potential destination hubs and shall recommend to USAID a list of up to six destination hubs to be assisted by USAID under this program. In order to build local ownership and sustainability of program outcomes, the hub selection process shall include a broad participatory vetting process by key GOM tourism sector entities, such as the Ministry of Culture, the Ministry of Economy and MIA, as well as by the private sector representative bodies, such as ANTRIM, and other key stakeholders.

Possible destination hubs could include:

Illustrative Hub #1: Orheiul Vechi, one of the most important cultural and

- 6 -historical sites of Moldova pending UNESCO status, and a flagship tourist attraction.

Illustrative Hub #2: Soroca that is located in the northern part of Moldova, with

Soroca Medieval Fortress as the main attraction. This would build upon the cross-border Romania-Moldova EU project for rehabilitation of cultural heritage in historic towns of Soroca, Suceava and Hotin, that enabled the 2 million Euro reconstruction of the Soroca Fortress. Further capitalization on this investment is possible through cultural heritage tourism thus increasing earned revenues for cultural resources.

Illustrative Hub #3: The Causeni/Stefan Voda region in the south-east of

Moldova, revolving around winemaking culture in the famous region of Purcari and the iconic 17th century Assumption of Our Lady Church in Causeni town, one of the most historically valuable religious monuments in Moldova. The program could complement ongoing U.S. Embassy support for church restoration, so that it is integrated in the tourism circuit.

Illustrative Hub #4: The Tighina Fortress, located in the Transnistrian region.

Illustrative Hub #5: The Gagauzia region of Moldova, featuring unique local gastronomy and cultural heritage.

Illustrative Hub #6: The historical architectural complex Manuc Bey, located in

Hincești city in the central-western part of the Republic of Moldova includes the following edifices: Palace of Manuc, House of Bailiff, Countess House, Hunting Castle, Watchtower, and others. The museum complex and its grounds were recently restored following a 2.5 mln Euro EU assistance package. The mansion is an architectural monument recorded in the Register of Cultural Monuments of the Republic of Moldova.

Following the hub selection, the Contractor shall lead the development of Destination Development Plans for further unlocking the potential of each proposed site. The Contractor shall propose a realistic timeline for the development of individual Destination Development Plans for each of the selected hubs.

The Destination Development Plans shall be developed according to international best practice with technical assistance provided by the Contractor. The process will be fully participatory along the entire value chain. This means that it will be driven both by needs and feedback from the ‘buyer’ perspective (foreign tour operators and other trade) and the needs and feedback from the ‘ground’ at the destination/site level. By incorporating the demand aspect and a strategic focus specifically on tourism, this approach will complement the substantial work that has been done to date by USAID under the Moldova Tourism Marketing Plan 2017-2018 and the Tourism Whitepaper. In developing the Destination Development Plans for the selected tourism hubs, the Contractor shall engage the local communities from the targeted regions through a collaborative

- 7 -and participatory process. Various local stakeholders, such as national and local tourism stakeholders, local government, community members, civil society, etc. shall be engaged and consulted in documenting the cultural tourism assets, vision, goals and potential issues for tourism in a given location. Coordination with GOM and other key donors, such as WB, on critical infrastructure upgrades, such as roads, water and sanitation, etc. in the selected hubs or along specific corridors ensuing access to the selected hubs, will be critical, given availability of limited funding.

The Destination Development Plans will consist of detailed activities for the proposed strengthening of cultural and natural tourism activities, sites or attractions, with a proposed action plan for the Contractor and all involved stakeholders. The methodology for analysis, to be approved by USAID, should consider a range of factors and produce a ranking of options with anticipated funding requirements (not to exceed $5 million in cost).

The Contractor proposed methodology for destination validation, should at a minimum, include the following five prioritization factors:

1. Existing and potential market demand;

2. Readiness for growth;

3. Ability to generate development impact;

4. Strategic significance (documented as priorities in existing strategies);

5. Potential for regional tourism circuit integration.

Possible activities under this component may include interventions to improve the physical condition of attractions, access to cultural and natural heritage sites, and related TA such as promotion and branding, etc.:

Site upgrades, such as the upgrading of cultural and historical sites, including museums, in accordance with international best practices. Preservation and protection of sensitive sites in accordance with internationally-recognized standards must be paramount.

Accommodation upgrades, such as the refurbishment and upgrading of existing or establishment of accommodations, in particular guesthouses, to meet the expectations of tourists and adhere to international best practices.

Research, excavation and curation of archeological of sites; Archeological exploration, such as the unexplored Turkish forts as a tourist draw for archeologists;

Elevating Moldovan culture and history through events, activities, experiences, promotional campaigns, and similar endeavors, to expose tourists, both domestic and foreign, to the country’s cultural history.

With respect to Component 1, the Contractor is expected to make use of the majority of funds designated for grants under contract (GUCs).

At the end of Year 1, the Contractor will consult with USAID to determine if additional opportunities identified by the analysis should be pursued during implementation lifetime. Given limited program resources and a need to meet the rapidly growing influx of tourists, the results should be shared with GOM counterparts and other donors to the extent possible to facilitate additional support for the tourism sector.

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Subcomponent 1.2: Mapping, researching and enhancing the Moldovan cultural heritage assets USAID’s investments in Moldova’s tourism and wine sectors through the Moldova Competitiveness Project (MCP) resulted in impressive initial results. Building on the past USAID successful interventions in this sector, the Contractor shall propose a plan for a Cultural Heritage Asset Mapping, Research and Enhancement Program designed to improve the tourism experience in Moldova by strengthening the country’s cultural heritage through local ownership building at the grassroots/community level. Moldova’s historical and archaeological sites and museum collections already hold intrinsic cultural value and touristic appeal. Preserving, managing, and promoting these sites and collections while improving needed interpretation and accessibility will reinforce their value as a foundation for Moldova’s cultural tourism experience.

By the end of year 1, the Contractor shall perform a cultural research and asset mapping to build a stronger understanding of the history and living cultural heritage of Moldova. The task will include ethnographic, historical, and socioeconomic research in partnership with communities and academic partners. In addition, the Contractor will perform a destination-based cultural and tourism asset mapping. The results will be made public and will inform subsequent interpretation, product development, and marketing collateral, as well as the proposed Program activities under Subcomponent 1.1: Upgrading of select destination hubs leading to improved tourism experiences.

Subcomponent 1.3: Diversify and enhance the competitiveness of the Moldovan tourism product offering The attraction of Moldova for the foreign visitor lies in the distinctive range of experiences it offers. Its principal selling point is as an ‘experiential tourism’ destination – focused on discovering the rich heritage, culture, history and character of Moldova through participation and direct human interaction.

In order to unlock the potential of the tourism sector and transform it into a driver of economic development, Moldova needs to emerge as a world-class cultural heritage tourism destination featuring a wide ranging cultural tourism product that includes archeological, cultural, historical, religious, soft adventure, and experiential tourism among others, and promoting Moldova as a tourism destination beyond its wineries. Strategically, there is an urgent need to both strengthen and diversify the tourism product base and provide the visitor with stronger motivations for spending more time in the country. To this end, the Contractor shall identify products, tangible or intangible, that can be developed into distinctive tourism products that have the potential to become demand drivers for higher paying markets. The Contractor shall propose interventions to identify and prioritize the quality improvements needed to increase the competitiveness of existent products.

Component 1:Expected results Mapping and unveiling of the distinctive features of Moldova’s cultural heritage that form the foundation of Moldovan identity and culture.

Inclusive research/mapping model that engages local communities and ethnic minorities resulting in improved social cohesion and pride in the Moldovan identity.

Mapping and discovering cultural themes to build content for a more diverse and meaningful tourism experience.

Develop a diversified offer of the Moldovan Tourism Product beyond the iconic wine

- 9 -tourism product, featuring cultural and experiential tourism offer;

Raise the quality of the core tourist product to international standards Upgrade and expand the tourism and leisure product to meet the needs of the domestic market Stimulate wider tourism distribution through development of strategic regional hubs.

Component 2: Expanded and Developed Source Markets

Subcomponent 2.1: Branding, positioning, and marketing to enable Moldova to develop and implement strategies to attract specific target segments from key markets through collaterals, communication, and promotion.

Tourism growth in Moldova cannot be achieved without serious and sustained investment in a market-driven approach in developing source markets and establishing market linkages. A more effective and adequately resourced Tourism Sector Marketing Plan as part of the new National Tourism Sector Strategy is an urgent priority. It is expected that the development of the new National Tourism Strategy will entail a heavy demand-driven focus and emphasis on market research and prioritization of the targeted market segments in specific key markets. The Moldovan Investment Agency (MIA), in its capacity as the newly appointed tourism sector Destination Marketing Organization5 (DMO), needs to have a stronger private sector involvement/consultations mechanism in carrying forward the tourism sector promotion and marketing agenda. As part of its marketing strategies, MIA needs to build capacities to execute an integrated program of international promotional activities to position Moldova as a new tourism destination and to develop the awareness and brand equity for the tourism industry. The Contractor shall propose a clear approach to building the institutional and technical capacities of MIA to carry out this mandate.

The Contractor shall develop interventions that promote Moldova as a tourism destination. To this end, in close coordination with the relevant private and public stakeholders, and building on extensive market research/analysis and prioritization of targeted market segments, the Contractor shall develop packaging and promotional tools that will help the international tourism operators understand and more effectively sell tourism to Moldova, and will engage traditional and new media to do PR and marketing. The program shall include interventions that reach out to targeted international tourism operators to educate them about the Moldova tourism offer, and help experience Moldova as a travel destination.

Subcomponent 2.2: Integrating Moldova in the cross-border regional tourism offering (Romania, Ukraine, Western Balkans)

Given the Moldova’s proximity and relationship to neighboring countries with much greater tourism arrivals (e.g., Romania, Ukraine), integrating the Moldovan cultural products and experiences with those of neighboring countries and developing cross border routes around common themes is a critical step for mid-term growth and development of the Moldovan tourism

5 In travel and tourism terms, DMO stands for Destination Marketing Organization. They represent destinations and help to develop their long-term travel and tourism strategy. DMOs come in various forms and have labels such as "Tourism Board," "Convention and Visitors Bureau," and "Tourism Authority”.

- 10 -industry. As such, in the various components of this program, the Contractor shall prioritize tangible and intangible cultural heritage that connects Moldova to such cross-border opportunities.

Illustrative activities could include:

1) Explore the linkages between Moldovan winemaking and winemaking in neighboring or nearby countries/regions (Romania, Balkans, Georgia) in a way that could integrate a Moldovan wine trail with regional wine trails.

2) Explore ethnic and religious groups that trace their history across borders and heritage trails that cross borders and bring people into Moldova from neighboring countries.

3) Identify and build themes centering on common historic/religious contexts—e.g., Jewish, Roma heritage, etc., which could be part of larger regional tour opportunities.

Strong partnerships with agencies and public or private institutions with strong cross-border interests will be critical for success. Such partnerships can be expanded and leveraged to attract a pool of regional stakeholders that both want to expand offerings and opportunities in Moldova and/or have an interest in investing in Moldovan products and businesses.

Component 2: Expected results Enhanced branding, positioning, and marketing to enable Moldova to develop and implement strategies to attract specific target segments from key markets through collaterals, communication, and promotion.

Development and launch of regional tour routes or thematic tour routes (e.g. Regional Wine Trail, Jewish heritage trail, Roma/Gagauz heritage trail) that can serve as a major draw for cross-border tourism. Within each tour route a network of partners/stakeholders identified—sites, businesses, government, NGOs.

Expansion of the National Wine Trail initiative, launched in 2018 with USAID support, to include new assisted wineries ready to receive tourists in addition to featured rural, cultural, religious, and other experiences of interest.

Formalization of route/sites through needed collateral, interpretation, maps, etc.

Marketing of regional tour routes integrated into larger Moldovan and regional tourism offer as appropriate, with an emphasis on Romania and Ukraine.

Component 3: Strengthened Moldovan cultural (artisan/craft) industries including value chain assessment of artisan sector, assessment of tourism education and training strategic needs, improvement of tourism institutions’ programs, and upgrading of cultural guides.

The Contractor shall help strengthen capacity of Moldovan artisan craft sector, highlighting the country’s unique offerings and ensuring that visitors are able to purchase craft – not only at outlets in Chisinau, but at sites and destinations along the tourism routes. The Contractor shall work towards strengthening capacity and sustainability of Moldovan festivals by identifying the most viable ones and linking them to the narrative threads identified for promotional campaigns, as well as providing a course and one-on-one mentorship for festival organizers on sustainable festival business planning. To better understand the dynamics of Moldova’s artisan sector, the Contractor shall conduct a value chain analysis, building on the information gathered through the initial research and asset-mapping exercise under Component 1. This research will inform

- 11 -interventions, including customized trainings, which will engage local partners and include product design and development, technical skill workshops, enterprise development, and business planning.

In cooperation with the Ministry of Culture and local partners, the program will work towards improving the quality of cultural interpreters at both the national and local level through analyzing the existing guide training programs, creating community-based cultural interpreter curriculum, and developing content that will contribute to the curriculum of the tourism vocational schools. The team will build the capacity of museum and visitor center staff through assessing staffing training needs and targeted interventions for priority museums and visitor centers.

Component 3: Expected results Artisan enterprises with increased knowledge and ability to strategically develop their business and reach new customers;

Artisans engaged in new or improved market access opportunities;

Local festivals and events that showcase Moldovan wines, crafts, traditions, dances, gastronomy, and authentic experiences, with demonstrated improvements in both quality and revenue and attendance;

Assess the artisan craft value chain and develop a plan for incorporating artisans into museums, festivals and other tourism products; Number of museum, festival and artisan craft fellows benefiting from USAID assistance;

New museums included in tour packages;

New courses developed to support museum, festival and artisan craft sectors;

New courses adopted at tourism education institutions;

Component 4: Enhanced Industry Enabling Environment and Local Institutional Development

The tourism sector suffers from an outdated regulatory framework that inhibits the sector’s competitiveness and capacity to generate economic growth. Its reform is at the very foundation of the sector’s future success. The importance of the tourism sector is emphasized in national and regional strategies, such as the National Tourism Strategy 2020, yet there is a stringent need for a clear elevation of the tourism sector as a strategic sector of the economy in the near and long term, if sustainable growth is to be achieved. There is a critical need for an enhanced public-private dialogue and more robust public policy coordination in the implementation of the tourism agenda.

With an eye towards its long-term economic growth potential, working closely with the GOM designated tourism sector actors, the Moldovan Investment Agency, the National Association for Inbound Tourism (ANTRIM), the Tourism Guides Guild, and other sector associations, the Contractor shall promote structural reforms by facilitating public-private dialogues between key public and private sector stakeholders, development partners and other tourism value chain actors, in order to design, develop and collaboratively implement a collaborative approach for the tourism industry long-term development.

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Under this component, the Contractor shall foster collaboration between the public and private sectors to develop and implement a National Tourism Sector Strategy geared towards a robust evolution of the inbound tourism industry, supported by growth stimulating public policies, as well as by well-defined and targeted marketing and product development strategies. In addition, the Contractor should pursue policy measures that would protect and promote Moldova’s cultural identity in accordance with best practices.

Subcomponent 4.1: Strengthened national tourism policies and institutions conducive to tourism industry development.

National Tourism Strategy Development. In 2018, with USAID support, the tourism industry public and private sector stakeholders within the tourism industry joined around a common vision outlined in the White Paper for Tourism Industry Regulatory Reform. Both GOM and private sector business associations, such as ANTRIM, endorsed the critical proposals within the White Paper aimed to generate a pro-entrepreneurship business environment and reduce the current significant barriers to entry for SMEs in the industry. In 2019, USAID/Moldova engaged in an intensive dialogue with the GOM counterparts and developing partners, committing to support GOM institutions in developing a new long-term National Tourism Strategy Development through a participatory and inclusive process. Initially, USAID support for the Strategy Development shall be provided via the MCP instrument. Immediately following the award of the Program, depending on the Strategy development phase, the Contractor shall engage in the strategy development exercise and shall be on boarded into the strategy development process ensuring that the cultural heritage management aspects are reflected in the vision and final vetting of the strategy. In the strategy development process, the Contractor shall ensure that final strategic document reflects a clear understanding of both the supply (assets, products, facilities) and the demand side (an understanding of why and how tourists visit the country).

Institutional strengthening of public and private tourism sector stakeholders The Contractor must support public institutions involved in the oversight and management of the tourism sector to optimize limited resources and implement key policy changes. The Contractor shall improve MIA’s market research and marketing expertise and focus its efforts on high-value source markets of inbound tourism. Additional institutional capacity building will target various ministries, and other public institutions to support implementation of priority tourism sector policy and regulatory reforms. In particular, the Contractor will provide assistance to the GOM to ensure that business incentive programs such as programs run by ODIMM, and tourism promotion efforts are streamlined, transparent, and effectively implemented.

Tourism data collection and national statistics strengthening. The shortage of detailed intelligence on the size and nature of tourism in Moldova is a major shortcoming that needs to be resolved as a priority, so that strategic decisions can be taken on the basis of solid evidence. The range of data that is collected is inadequate for the purposes of planning policy, with limited data available about the characteristics and behavior of visitors, their permanent place of residence, average expenditure, length-of stay, places visited, etc. There is a critical lack of knowledge of visitor behavior: likes and dislikes, attractions visited, level of expenditure, etc. The collection

- 13 -and analysis of tourism statistics is the sole responsibility of the National Statistics Bureau, where tourism is not treated as a distinct sector and resources are extremely limited.

In order to address these critical limitations affecting informed tourism sector policy-making, the Contractor shall analyze intelligence gaps, and recommend most cost-effective methods for collection, analysis and distribution of data in order to improve the availability and use of data to inform policy-making (including on the feasibility and regulatory issues related to establishing a “Tourism Satellite Account”6).

Subcomponent 4.2: Coordinate GOM and local stakeholder involvement to sustain the development of cultural tourism in Moldova There are a multitude of stakeholders interested in the outcome of this program, with many potential streams of funding to expand breadth and depth of the project efforts. Excellent coordination with these stakeholders will be required. The Contractor shall build on USAID’s initial investment with resources from a wide variety of sources, ranging from foundations and universities to the Moldovan diaspora around the world.

The program kick-off will bring together GOM, and key development partners that could become potential partners in the Program either through direct project co-funding or funding of discrete strategy priorities (World Bank, Swiss Development Agency, SIDA, GIZ, British Embassy, etc.), as well as tourism and cultural sector stakeholders to engage in the key decision-making. This initial process will help set the stage for strong relationships with relevant stakeholders and determine the format of the collaborative process throughout the life of the program.

The Contractor shall establish a close coordination with the GOM, including with Ministry of Economy (Tourism Department), Ministry of Culture, Education and Research, the Ministry of Agriculture and Regional Development (on the regional development side), and MIA to ensure local ownership and buy-in into program objectives, as well as ANTRIM and other private sector actors. Under USAID’s leadership, the Contractor shall ensure a close coordination with the donor community, which will be essential to achieve high impact results. Immediately upon award, the Contractor shall engage with the key tourism sector stakeholders to explore the feasibility of establishing a tourism sector development coordination body, in the form of a Tourism Sector Advisory Council, possibly headed by MIA and leading public, private and development sector stakeholders.

The Contractor is expected to coordinate closely with the following tourism sector stakeholders in the implementation of program activities:

• The Ministry of Education, Culture and Research and its National Centre for Conservation and Promotion of Intangible Cultural Heritage;

• The Ministry of Agriculture and Regional Development;

• The Ministry of Economy and Infrastructure and its Tourism Department responsible for policy making in the tourism sector;

• The Moldova Investment Agency, responsible for tourism sector promotion activities;

• The Inter-Ministerial Group managing the Orheiul Vechi (Old Orhei) site;

6 Statistical system containing a set of tools and techniques that determine the connection of tourism with other branches of the economy and quantifies the share of tourism in the country's gross domestic product.

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• The Museum of Ethnography and Natural History. Established in 1889, this is the oldest public museum in Moldova; its collections represent all regions of the country. The museum has the potential to serve as an orientation point, driving visitors to Chisinau out to the regions.

• Key university and academic partners

• Strategic industry and private sector groups and associations. Establishing partnerships with groups such as the National Office for Vine and Wine, the National Inbound Tourism Association, the National Association of Rural, Ecological and Cultural Tourism, and other such public/private entities will ensure industry-led support, ownership, and sustainability of program outcomes.

Transition of USAID Tourism Sector Assistance from MCP to the New Award:

Current USAID tourism sector support is being delivered through USAID’s MCP Project which has been assisting the nascent Moldovan tourism sector since 2012. The Mission envisions that MCP will continue to provide tourism sector development support through January 2020, when the new Contractor will be fully on-boarded and will be able to fully take over the tourism sector activities under the umbrella of a single tourism sector development program, funded by USAID.

Therefore, immediately upon award, the Contractor will start its coordination and transition planning activities jointly with the USAID MCP Project team. The Contractor shall propose a handover strategy over a period of up to three months following the award of this Contract.

In 2019, USAID assistance for the tourism sector through the MCP project is channeled primarily towards the following objectives:

1. Strengthen national tourism policies and promote business reform conducive to tourism industry development. Building on existing efforts, in 2019 MCP supports the Ministry of Economy and Infrastructure to amend tax proposals for rural bed and breakfasts and tourism guides under the “doing business” framework. The recommendations include providing fiscal incentives, removing obsolete permits and authorizations, excluding the state’s discretionary interventions, and fostering investments in the tourism hubs.

Extensive technical assistance will target both public and private stakeholders to ensure an inclusive and sustainable reform of the sector and a new national strategy for the tourism sector.

2. Develop more rural tourism service providers creating world-class rural tourism experiences in Moldova. As a result of MCP’s assistance, the number of rural bed and breakfasts and tourist-oriented wineries that meet international tourism standards has doubled. MCP is expanding support to existing beneficiaries to add an additional 10 to 15 emerging and/or high-potential beneficiaries, ranging from rural households, farmers, craftsmen, and winegrowers/vintners. The Program is prioritizing the development of accommodation services and interactive experiences (e.g., cooking, biking, eco-trails) to attract high-spending tourists in key tourism destinations in Central and Southern Moldova, including Chisinau and its surroundings, the Orhei Vechi reservation, the Stefan Voda wine region, and Gagauzia.

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3. Continue promoting Moldova internationally as an authentic tourism destination.

Marketing Moldova as a travel destination will continue to be targeted to key source and second-tier markets such as Italy, Romania, Poland, Japan, Scandinavian countries, and the United Kingdom. MCP is supporting familiarization tours to welcome more than 50 tourism influencers and the press, launching digital campaigns, and participating in leading travel fairs.

OUTCOMES, EXPECTED RESULTS AND IMPACT OF THE PROGRAM

Outcomes The following will be the major outcomes of the overall program.

Expected results

It is expected that the ONE MOLDOVA Program activities will result in improved and better structured tourism offerings throughout the supply chain which in turn will increase the attractiveness of destinations and produce the following outcomes, sequentially as listed below:

Component 1

• Increase in appreciation for Moldovan cultural diversity, a Moldovan national identity and social cohesion;

• Enhanced social cohesion among various ethnic groups in Moldova, as measured by the SCORE Index;

• Increase in the number of visits at cultural tourism sites;

• Increase in the number of museums, festivals and artisan demonstration sites included in tour packages;

• Increased tourist visits and overnight stays;

• Increased revenue for enterprises in the tourism sector at the destinations;

• Increased private investments in tourism related activities due to emerging opportunities;

• Percentage increase in visitor satisfaction survey at cultural sites

• Jobs created for the operation of increased tourism activities at the destinations;

• Increased retention of economic benefits at the destination level.

Component 2

• Enhanced branding, positioning, and marketing to enable Moldova to develop and implement strategies to attract specific target segments from key markets through collaterals, communication, and promotion.

• Number of new regional tour routes or thematic tour that can serve as a major draw for cross-border tourism.

• Marketing of regional tour routes integrated into larger Moldovan and regional tourism offer as appropriate, with an emphasis on Romania and Ukraine.

Component 3

• Number of museum, festival and artisan craft fellows benefiting from USAID assistance;

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• Number of museums included in tour packages;

• Number of new courses developed to support museum, festival and artisan craft sectors;

• Number of new courses adopted at tourism education institutions;

• Artisan enterprises with increased knowledge and ability to strategically develop their business and reach new customers;

• Number of artisans engaged in new or improved market access opportunities;

• Number of local festivals and events that showcase Moldovan wines, crafts, traditions, dances, gastronomy, and authentic experiences, with demonstrated improvements in both quality and revenue and attendance;

Component 4

• Strengthened national tourism policies and institutions conducive to tourism industry development.

• Institutional strengthening of public and private tourism sector stakeholders

• Enhanced GOM and local stakeholder coordination to sustain the development of cultural tourism in Moldova

• Number of new cost-effective methods for tourism statistical data collection, analysis and distribution leading to informed policy-making

• Number of program interventions linked to other donors and contributing to cultural heritage preservation

• Number of program interventions with coordinated donor support

• Amount of PPP funds leveraged in support of program activities

• Increased public sector investments in tourism related activities due to emerging opportunities;

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ANNEX B

Termeni de Referință

Programul de Dezvoltare a Industriei Turismului “THE ONE MOLDOVA” Relansarea patrimoniului cultural național al Moldovei

VIZIUNE GENERALĂ

Dezvoltarea industriei turismului în contextul Republicii Moldova are potențialul de a influența în mod direct dezvoltarea economică durabilă la nivel local, de a reduce fluxurile migrației, de a opri depopularea rapidă a zonelor rurale din Moldova și de a servi drept platformă pentru dezvoltarea altor industrii, inclusiv cea vitivinicolă, a agriculturii și a altor servicii. Pentru a valorifica potențialul sectorului turistic și a-l transforma într-un motor al dezvoltării economice, Moldova trebuie să devină o destinație turistică de clasă mondială a patrimoniului cultural, care să ofere un amplu produs cultural-turistic, incluzînd turismul arheologic, cultural, istoric și religios printre altele, precum și promovarea Moldovei ca destinație turistică dincolo de vinăriile sale. Conservarea, întărirea și promovarea tuturor aspectelor patrimoniului național trebuie să reprezinte o trăsătură cheie a sectorului turismului responsabil7 din Moldova, atât din motive de interes național, cât și din cauza puterii sale de a atrage vizitatorii străini curioși din punct de vedere cultural, dar și cu o putere de cumpărare superioară mediei de piață. Investițiile într-o infrastructură turistică extinsă, alături de dezvoltarea unor narative turistice convingătoare și un mediu favorabil îmbunătățit, care să susțină competitivitatea sectorului turistic, ar putea să relanseze această industrie emergentă, care să atargă după sine o injectare semnificativă de investiții și generări de venituri în regiunile rurale ale Moldovei.

Diversitatea culturală, lingvistică și etnică a Moldovei este un atu valoros, însă până în prezent această diversitate a împiedicat conturarea unei identități puternice a Republicii Moldova, atestîndu-se mai degrabă o slabă coeziune socială între diversele etnii culturale ale Moldovei.

Având în vedere acest context provocator, este necesară identificarea unei înțelegeri comune a cauzelor, care stau la baza forțelor de divizare și unificare în societate, iar dezvoltarea sectorului turistic național ar putea reprezenta o oportunitate de a încuraja unitatea în defavoarea disensiunii, prin construirea unei ample conștientizări și aprecieri pentru imensele moșteniri culturale și istorice ale Moldovei într-un mod, care să urmărească incluziunea și să creeze o mai mare coeziune socială.

OBIECTIVELE PROGRAMULUI

Obiectivul general al acestui program de cinci ani este de a stimula în continuare…