RFP 72066421R00001 VISIT Tunisia.pdf

U.S. Agency for International Development (USAID)

Visit Tunisia Project Solicitation # 72066421R00001

Request for Proposal (RFP) No. 72066421R00001

Issue Date: November 3, 2020

Questions Due Date November 13, 2020, 16:30 est

Technical and Cost Proposals Submission Due Date January 8, 2021, 16:30 est

SUBJECT: Request for Proposals (RFP) RFP No.: 72066421R00001

USAID/Tunisia Visit Tunisia Activity

Dear Prospective Offeror:

The United States Government, represented by the U.S. Agency for International Development

(USAID), Mission in Tunisia, seeks proposals from qualified organizations to implement the

Visit Tunisia Activity, as described in the attached Request for Proposal (RFP) as detailed in

Section C.

USAID anticipates awarding a Hybrid Cost Plus Fixed-Fee Completion/Single-award Indefinite

Delivery-Indefinite Quantity (IDIQ) type contract as a result of this solicitation, covering an estimated period of five (5) years from the date of contract award, consisting of a three (3) year base period and one two (2) year option period. USAID estimates the maximum amount of this contract (costs and fee) in the range of $26,000,000 to $30,000,000 for the base period and in the rage of $16,000,000 to $20,000,000 for the option period.

The North American Industry Classification System (NAICS) code for this acquisition is

541990.

The principal Geographic Code is 937.

This requirement is subject to the availability of funds.

Pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1), this procurement will be conducted under full and open competition procedures. All types of organizations are eligible to compete.

If your organization decides to submit a proposal in response to this solicitation, it must be submitted in accordance with Section L of this RFP. Offerors must also carefully review

Section M - Evaluation Factors for Award. Sections B through I of the solicitation will become a substantive part of the anticipated contract with blanks to be completed by the Contracting

Officer upon award. Section K - Representations, Certifications and Acknowledgements must be filled out in full by the Offerors. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date and time stated above.

To be considered for award for this contract, an offeror will be required to submit a written proposal and participate in oral presentations. Carefully read Sections C, L & M for specific details. Oral presentations are anticipated to begin o/a January 25, 2021 using meet.google.com application.

It is the responsibility of the recipient of this solicitation to ensure that the solicitation has been received from the http://beta.sam.gov page in its entirety. USAID bears no responsibility for data errors resulting from download or conversion processes.

Only Electronic submissions will be accepted. No other forms of submission will be accepted.

Please note that the initial point of entry to the Government infrastructure for proposal submission is the USAID/Washington Internet server which will determine the timeliness of submission.

Any questions regarding this solicitation must be submitted in writing via email to

TunisiaSolicitations@usaid.gov by the date and time specified above. Answers to offerors’ questions will be provided in writing via solicitation amendment.

Proposals must be submitted via email to TunisiaSolicitations@usaid.gov. If your organization decides to submit a proposal in response to this solicitation, it must be submitted by the designated date and time indicated in Block 9 of the RFP Cover page (Standard Form 33).

Proposals received after the closing date and time will be processed as late and handled in accordance with FAR 52.215-1. Proposals submitted in response to this solicitation shall be valid for no less than 240 days.

If substantive questions are received which affect the solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this solicitation will be amended.

USAID reserves the right to amend or rescind this solicitation at any time. The solicitation, amendments to this solicitation, and the announcement of contract award will be made available through the government point of entry at http://beta.sam.gov/. It is the Offeror’s responsibility to check this site periodically for official updates to this solicitation.

Issuance of this solicitation and the submittal of a proposal do not constitute a commitment on the part of the U.S. Government nor USAID to make an award; neither does it constitute an obligation for any costs incurred in the preparation and submission of a proposal.

http://beta.sam.gov/ mailto:TunisiaSolicitations@usaid.gov mailto:TunisiaSolicitations@usaid.gov http://beta.sam.gov/

Furthermore, the U.S. Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government.

USAID appreciates the time and effort put into preparing proposals in response to this solicitation.

Sincerely, Craig Smith

Regional Contracting Officer

USAID/Middle East Regional Platform

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGES

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

CODE7. ISSUED BY 8. ADDRESS OFFER TO (If other than item 7)

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS)

AREA CODE NUMBER EXTENSION

C. E-MAIL ADDRESS

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. PAGE(S)DESCRIPTION

A B C D E F G H

I

J

K

L

M EVALUATION FACTORS FOR AWARD

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

LIST OF ATTACHMENTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

CONTRACT CLAUSESSOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

DESCRIPTION/SPECS./WORK STATEMENT

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS(%)

DATEAMENDMENT NO.AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFEROR

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN

OFFER(Type or print)

15B. TELEPHONE NUMBER

AREA CODE NUMBER EXTENSION

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION:

10 U.S.C. 2304 (c) ( )41 U.S.C. 3304(a)

24. ADMINISTERED BY (If other than Item 7)

26. NAME OF CONTRACTING OFFICER (Type or print)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

25. PAYMENT WILL BE MADE BY

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

CODE

ITEM

STANDARD FORM 33 (REV. 6/2014)

Prescribed by GSA - FAR (48 CFR) 53.214 (c)

SEALED BID (IFB)

NEGOTIATED (RFP)

(Hour) (Date)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

ACRONYMS AND ABBREVIATIONS

CDCS Country Development Cooperation Strategy

CRP Country Road Map

DMO Destination Management Organization

DO Development Objective

EBRD European Bank for Reconstruction and Development

EU European Union

GDP Gross Domestic Product

GIZ Gesellschaft für Internationale Zusammenarbeit

GoT Government of Tunisia

IEE Initial Environmental Examination

IR Intermediate Result

J2SR Journey to Self-Reliance

MENA Middle East and North Africa

MICE Meetings, Incentives, Conferences and Exhibitions

NDC Negative Determination with Conditions

NGO Non-governmental organization

NTO National Tourism Office

PS Private Sector

PSE Private Sector Engagement

USG United States Government

WEF World Economic Forum

WTO World Tourism Organization

PART I – SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE STATEMENT

The purpose of the Visit Tunisia activity is to capitalize on Tunisia’s natural, cultural, heritage and historical sites to develop a more diversified and high-quality sector that contributes to broad-based economic growth.

B.2 CONTRACT TYPE

This is a FAR 16.102(b) combination award consisting of a Cost Reimbursement-

Completion (CLIN 0001, 0002 and 0004) and a single-award Indefinite Delivery/Indefinite

Quantity (IDIQ) type contract (CLIN 0003) for the purpose of obtaining private sector partnerships, hereinafter referred to as the Project Fund.

This is a five (5) year contract that consists of a three (3) year base period and a one two (2) year option period. For the consideration set forth below, the contract shall provide the deliverables described in Section F in accordance with the performance standards outlined in Section F of this document.

Under the Cost Reimbursement Completion portion of the contract (CLIN 0001, 0002 and

0004), the contractor shall furnish all personnel, materials, equipment, supplies, facilities, services (except as expressly set forth in this contract as furnished by the Government) and perform all activities necessary for, or incidental to, the performance of work described in

Section C.4 and other sections of the contract not specifically identified under CLIN 0002 as the IDIQ Project Fund.

Under the IDIQ portion of the contract (CLIN 0003), the contractor must furnish additional technical assistance arising out of or related to identified and approved private sector partnerships, as required by Government-Issued Task Orders. The services shall be ordered in accordance with Section H.17 entitled “Ordering Project Fund Assistance” and the IDIQ clauses in Section I. As this CLIN is part of this contract and not a stand-alone award, the

Government is not required to state or order any minimum number of person-days as otherwise provided in FAR 16.504 (a)(1)). The other CLINs contained in this Contract provide sufficient consideration to make this a legally binding contract, and the

Government has no obligation to fund or order under this CLIN.

B.3 ESTIMATED COST, FIXED-FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required for the three (3) year base period, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD. The estimated cost plus fixed fee, if any, is $TBD. Cost must be limited to reasonable, allocable and allowable costs determined in accordance with FAR 52.216-7 Allowable Cost and

Payment.

(b) The estimated cost for the performance of the work required for the option period, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, for the Option is $TBD. The estimated cost plus fixed fee, if any, is $TBD. Cost must be limited to reasonable, allocable and allowable costs determined in accordance with FAR 52.216-7 Allowable Cost and

Payment.

(c) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The

Contractor must not exceed the aforesaid obligated amount unless authorized by the

Contracting Officer pursuant to the clause of this contract entitled "Limitation of Funds"

(FAR 52.232-22).

(d) Subject to the availability of funds, this contract will be incrementally funded.

B.4 ESTIMATED COST AND FIXED FEE FOR CLIN 0004 ]

The total estimated ceiling cost of this CLIN is $[ ], exclusive of the associated maximum fee of $[ ]. The total estimated ceiling cost and maximum fee is

B.5 LEVEL-OF-EFFORT

A. In performing Government orders for Technical Assistance under the Project Fund

CLIN, the Contractor is obligated to provide up to a maximum of 10,000 person-days.

B. The fee set forth in B.4 is based upon furnishing the level-of-effort specified in paragraph A. The total estimated cost and fixed fee will be established in the individual Government issued Task Orders and shall not exceed the amounts set forth in Section B.4, IDIQ CLIN 0007.

B.6 BUDGET SCHEDULE

CLIN DESCRIPTION CLIN TOTAL AMOUNT

0001 Base Period – Technical Assistance (Non-

GUC)

0002 Base Period – Technical Assistance GUC

0003 Base Period – Supplemental Technical

Assistance (STA) – Project Fund (Private

Sector Partnerships)(IDIQ)

0004 Base Period – Infrastructure Provision

0005 Base Period – Fixed Fee non-GUCs

0006 Base Period – Fixed Fee GUCs

0007 Base Period – Fixed Fee Project Fund

Initial Base Period (Years 1-3) TEC

1001 Option Period – Technical Assistance

(Non-GUC)

1002 Option Period – Technical Assistance

(GUC)

1003 Option Period – Supplemental Technical

Assistance (SAT) – Project Fund (Private

Sector Partnerships)(IDIQ)

1004 Option Period – Infrastructure Provision

1005 Option Period - Fixed Fee non-GUCs

1006 Option Period – Fixed Fee GUCs

1007 Option Period – Fixed Fee Project Fund

Option Period (Years 4-5) TEC

TOTAL TEC (Base & Option)

These CLIN amounts may not be adjusted without a written modification signed by the

Contracting Officer. The contractor will not bill any amounts against this contract in excess of the amounts specified for each line item as illustrated above. The base amount plus the option exercised cannot exceed the total estimated cost of the contract.

B.7 INDIRECT COSTS AND CEILINGS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate base for prime contractors and their major subcontractors. Major subcontractors are defined as those whose proposed cost exceeds

20% of the Offeror’s total proposed cost.

(a) Reimbursement for indirect costs shall be at the lower of the negotiated final (or predetermined) rates or the following ceiling rates:

Description Rate Base Period

% 1/ 1/

% 2/ 2/

% 3/ 3/

1/ Base of Application:

Period:

2/ Base of Application:

3/ Base of Application

NOTE: Insert additional indirect rates as needed for all primes and major subcontractors in the above table.

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.8 COST REIMBURSABLE

The U.S. dollar costs allowable will be limited to reasonable, allocable, allowable, and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment

(AUGUST 2018), FAR 52.216-8, Fixed Fee (JUNE 2011), if applicable, and AIDAR

752.7003, Documentation for Payment (NOV 1998).

The applicable clauses incorporated by reference in Section I are as follows: FAR 52.232-

20 Limitation of Cost (applies when the contract is fully funded). FAR 52.232-22

Limitation of Funds (applies while the contract is funded in an amount less than the total cost plus fixed fee).

B.9 PAYMENT OF FIXED FEE

Pursuant to FAR 16.306 (d) Cost-Plus-Fixed-Fee Contracts, payment of the fixed-fee will be divided between fixed payments for activity deliverables, i.e. plans and reports (not to exceed twenty-five percent) and fixed payments based on the completed performance deliverables (seventy-five percent) found in the Fixed-Fee Schedule.

All fixed fee payments are subject to the inspection and acceptance by USAID as specified in Section E of the same and in compliance with the terms of this contract. Upon successful completion of a deliverable, the Contractor must provide evidence of its achievement in accordance with performance standards specified in Section F to the Contracting Officer’s

Representative (COR). Upon receipt of concurrence by the COR, the Contractor shall submit an invoice for the amount of the fee associated with the deliverable. In the event of discontinuance of the work in accordance with the clause of the contract entitled FAR

52.249-6 Termination (Cost Reimbursement), the fee must be re-determined by mutual agreement equitably to reflect the reduction in the work actually performed.

The amount by which such fee is less than, or exceeds, payments previously made on account of the fee must be paid to, or repaid by the Contractor, as applicable. Pursuant to

FAR 52.216-8 Fixed Fee, after payment of 85 percent of the fixed fee, further payment of the fee will be withheld until a reserve is set aside not to exceed 15 percent of the total fixed fee or $100,000, whichever is less.

Fixed Fee payment schedule is included in Section F.11.

[END OF SECTION B]

SECTION C – SCOPE OF WORK

VISIT TUNISIA PROJECT

C.1 PURPOSE

The Visit Tunisia Project is designed to enhance Tunisia’s tourism potential, with the goal of generating revenue and jobs, particularly for women and youth, and for populations in underserved regions of the country. Through this activity, USAID seeks to contribute to

Tunisia’s growth and development to offset the negative economic impact of the coronavirus crisis. The Contractor will work with the relevant ministries, private sector, and donors to advance the objectives while contributing to the following high-level results:

1. Increase in the number of tourists.

2. Increase in the number of jobs in the tourism sector.

3. Increase in tourism revenue.

4. Increase in private sector-led investment and innovation in the tourism sector.

A rigorous monitoring plan will be developed to track and assess progress throughout the life of the activity against established baselines.

C.2 DEVELOPMENT CHALLENGE

Nine years after the Revolution that toppled the dictatorship and established Tunisia as a singular democratic success story, the country’s biggest challenge remains growing the economy and providing economic opportunities, especially for young people and women. In 2019, the country’s slow economic progress was reflected in high unemployment rates, and substantial disparities in living standards and wages between wealthier coastal and eastern regions and the poorer southern and western regions. Female participation in the labor market was 26.5 percent and youth participation was 32.3 percent.

Between 2001 and 2019, the country’s gross domestic product annual growth rates averaged 3.18 percent, while inflation remained at a relatively high pace of 6.7 percent.

Tunisia’s foreign debt also grew significantly from $19.6 billion in 2010 to $36 billion in

2019.

Compounding the already fragile condition of the economy, this year’s COVID-19 pandemic has left the Tunisian government scrambling to rescue the economy. Like many other countries worldwide, in March 2020 the Tunisian government announced measures to confront the resulting crisis. Among these measures the government delayed tax debts, postponed taxes on small- and medium-sized businesses, and delayed repayment of low-income employee loans. The government also announced a $860 million assistance plan for business and individuals, including $52 million in allowances for the poorest.

Tourism is an integral part of the Tunisian economy and the sector’s recovery will be vital to revitalizing Tunisia’s economy after the pandemic ends. In general, tourism contributes to reducing the current account deficit, improving foreign exchange reserves, and driving broad-based economic growth. In 2019, the tourism sector accounted for 13.1 percent of the

Tunisian gross domestic product and employed more than 450,000 people. According to the

Tunisian Ministry of Tourism and Handicrafts, 9.4 million tourists visited Tunisia in 2019, a 13.6 percent increase from 2018. Tunisia predicted record numbers for 2020, however, with the coronavirus outbreak, the current outlook for tourism in Tunisia remains grim with no visible reprieve for the sector in the near term. Consequently, the government has reduced its overall economic growth forecast for 2020 to 1 percent from 2.7 percent.

Despite Tunisia’s wealth of natural and cultural resources, which range from desert to lush areas as well as millennia-old archaeological relics, the 2019 World Economic Forum, Travel and Tourism Competitive Index, ranks Tunisia 85th, last in North Africa after Egypt

(65th), Morocco (66th) and Jordan (84th). According to the report, the main factors inhibiting its development are the perception of low safety and security (102nd) and the quality of human resources in the sector (101th).

Recognizing that the sector could be better managed to deliver better results, in 2017 the

Tunisian Ministry of Tourism and Handicrafts held regional workshops to build a shared strategy around the following themes: (a) improved accessibility; (b) communications and promotion; (c) sustainable tourism; (d) quality of tourism products; (e) innovation and diversity of products and (f) development and qualification of tourism organizations.

However, these workshops have yet to feed into an effective plan to increase the competitiveness and profitability of Tunisia’s tourism sector. Absent from these discussions were issues related to access to finance. In the World Bank’s 2020 “Doing Business” report, Tunisia ranked 104 out of 190 on the Getting Credit indicator. Banks are more cautious when it comes to lending to businesses in the tourism sector due to seasonality of tourism operations and perception of high risk. It is therefore important that Tunisia builds on the stakeholder consultation to develop a new strategy that is based on new market prospects and key policy reforms initiatives.

C.3 THEORY OF CHANGE

The activity’s theory of change is that with the right incentives and full cooperation of the public sector, the private sector in the tourism industry can play a leading role in reviving the economy after the current public health crisis ends. Our theory holds that the positive and commercially sustainable results demonstrated by this activity will help accelerate private sector-led growth and investment to broaden their impact in the sector, further extending growth beyond targeted areas and eventually reducing the need for development assistance.

The theory takes into account a number of critical assumptions and risks. The major assumptions include: that by the time this activity is awarded, the current public health crisis would allow for the achievement of stated objectives; cultural and adventure travel provide a powerful draw for tourism; and improving the business enabling environment will stimulate private investment in the tourism sector and generate increased employment. A major risk to implementation includes the industry’s dependence on the economic situation in current source markets. The sector is also highly sensitive to perceptions of danger and lack of health, safety and security. Episodes of increased instability, including large-scale demonstrations, pandemics and/or violence depresses demand.

C.4 OBJECTIVES AND RESULTS

The overall vision behind USAID’s investment in Tunisia’s tourism sector is to capitalize on the country's natural, cultural and historical endowments to develop a more diversified and high quality sector that will enable the industry to increase overall earnings and contribute more substantially to broad-based economic growth in Tunisia. The activity will have four objectives:

1. Enhance Tunisia’s competitiveness as a tourism destination;

2. Increase tourism-related investments and revenue;

3. Improve the enabling environment for sustained growth in the tourism sector; and

4. Private sector engagement to expand the offer and quality of alternative tourism.

General descriptions of the development challenges under each objective listed above, including required activities and results, are described below.

C.4.1 Enhance Tunisia’s competitiveness as a tourism destination

An important driver of Tunisia’s existing tourism offering is based on large foreign tour operators that market Tunisia as a low-yield, all-inclusive resort product. To compete with other sun-sand-sea holiday destinations, hotels have continuously lowered prices to a point where profits and wages have depreciated to a minimum. Seasonality is also a major impediment to industry growth and impacts all aspects of supply-side behavior in tourism.

Each year, the tourism season starts in May, peaks in July and starts dipping in

September. As a result, the sector has been unable to sustain jobs during off-peak periods, limiting its ability to attract and retain quality staff throughout the year. Existing curricula and training programs have also failed to line up skills with industry needs. From the 140 countries reviewed, the 2019 World Economic Forum index ranked wages at 130th and customer-orientation at 95th. Women participation in the sector also ranked surprisingly low, and stood at 125th. These conditions can only be sustained if Tunisia intends to continue attracting low-yield, mass-market visitors.

Another challenge for the tourism sector is its dependence on the economic situation in current source markets. Around one third of the 9.4 million tourists in 2019 were predominantly European. France commanded a tenth of arrivals, followed by Russia, Germany, England and Italy. Around 52 percent were from Maghreb countries (Tunisia, Algeria, Morocco, Libya and Mauritania). Economic downturns in these countries, a health crisis or any political instability in Tunisia adversely impacts arrivals and severely harms the tourism industry. It is therefore important for Tunisia to look beyond traditional mass-market tourism, diversify its arrival sources and provide year-round offerings to attract arrivals from different source markets, and boost sector profitability.

Cultural and heritage assets, for example, could provide a powerful draw for year round tourism. Adventure travel is also a trend that can create opportunities for new businesses to provide niche, high value experiences, especially when adventure is combined with cultural heritage experiences. Nature-based travel is also a lucrative segment. Globally, an estimated

10-12 million leisure trips have nature and wildlife as the primary motivation, a niche market that was predicted to grow at 8-10 percent each year. Tunisia also has the potential to attract visitors to Star Wars filming locations, or to its food and wine offerings.

Moreover, business events (meetings, incentives, conferences and exhibitions) are an important product segment potential for Tunisia, and can bridge seasonality and generate revenue during the off season. The country, however, has not been able to fully capitalize on these markets.

The Tunisian tourism industry also depends on a reasonable level of stability and security.

To succeed in diversifying its source markets and increase demand, Tunisia needs to instill confidence and generate interest in the international marketplace. This requires careful planning and coordination amongst the various industry actors to manage messaging with international media and source market partners. In the past, public authorities and industry players have, to a large extent, relied on foreign tour operators to promote the country’s tourism.

It is therefore critical that Tunisia adopts an integrated strategy that enhances its image as an attractive destination, offers sophisticated tourism products, develops resilient sales channels and diversifies into new markets and market segments. Tunisia also needs to produce trained workers to provide higher quality service to tourist arrivals. The following interventions address the main constraints in Tunisia’s tourism industry identified under this objective:

Required Activities (Three-Year Base Period)

• Develop a long-term Strategic Plan, Action Matrix, and Branding and Positioning

Plan for Tunisia’s alternative tourism sector. The plan will: (1) be based on sound research and analysis; (2) developed with and agreed upon by public and private sector stakeholders; (3) include a commercial vision for product diversification, infrastructure needs and improved service delivery; (4) increase women and youth participation in the sector; (5) include a branding and positioning plan based on commercial demand from source markets and online and social media marketing techniques; (6) include a short-term strategy to restore confidence in, and support recovery of, Tunisia’s tourism sector; and (7) include an action-oriented matrix that clearly defines timelines, responsibilities, and human and financial resources required for implementation.

• Develop and implement at least nine (9) targeted campaigns that clearly articulate

Tunisia’s unique selling proposition.

• In partnership with the private sector, develop at least twenty (20) new commercially sustainable and scalable tourism products, of which at least one (1) new product will be a religious and ethnic minority tourism product that promotes minority religious cultures and exhibits their values and traditions.

• Develop and promote at least ten (10) additional new products, services and experiences in major coastal resorts throughout Tunisia, through day trips and night tours.

• In partnership with the private sector, create market linkages and businesses opportunities in the alternative tourism sector.

• In partnership with internationally recognized institutions, train and certify at least one hundred (100) trainers on tourism and hospitality international quality standards and best practices, of which at least thirty (30) percent are women.

• In partnership with the private sector, train and certify at least two thousand (2,000) tourism professionals throughout Tunisia (of which at least fifty (50) percent are women and thirty (30) percent are youth) including guides, service providers, and hospitality and service businesses throughout Tunisia, to deliver services at internationally recognized quality standards and best practices.

• Improve the efficiency, performance and profitability of at least five hundred (500) targeted businesses in the alternative tourism industry throughout Tunisia, of which at least thirty (30) percent are women-owned.

Expected Results (Three-Year Base Period)

• A strategic plan, a branding and positioning plan and an action matrix that results in at least a twenty (20) percent increase in alternative tourism visitors and obtains commitments of at least $10 million worth of investments from the private sector two years after its launch.

• Social media and online promotional outlets improve Tunisia’s image as an alternative tourism destination, leading to at least a twenty (20) percent increase in views on social media and international online travel services from specialized providers.

• Promote Tunisian alternative products and services in at least two (2) international venues.

• Alternative tourism products developed, each attracting at least fifteen thousand

(15,000) tourists each per year by the end of the 3-year base period.

• At least ten (10) new products, services and experiences are developed and promoted in major coastal resorts through day trips and night tours.

• At least a twenty (20) percent increase in the number of overnight stays in underserved regions of the country.

• At least a ten (10) percent increase per year in the number of businesses and intermediaries that independently commercialize alternative tourism services and products to existing and new markets.

• At least eighty (80) percent of the trained tourism professionals are employed six (6) months after being certified.

• Assisted businesses increase revenue by at least ten (10) percent.

• Assisted businesses and partner private sector organizations in the alternative tourism sector generate at least ten thousand (10,000) jobs.

• At least a twenty (20) percent increase in visitor satisfaction at sites and businesses assisted under this project.

Required Activities (Two-Year Option Period)

• Develop and implement at least six (6) targeted additional campaigns that clearly articulate Tunisia’s unique selling proposition.

• In partnership with the private sector, develop at least twenty (20) new commercially sustainable and scalable tourism products, each attracting at least ten thousand (10,000) tourists per year by the end of the two-year option period.

• Develop and promote at least ten (10) additional new products, services and experiences in major coastal resorts throughout Tunisia through day trips and night tours.

• In partnership with the private sector, expand and establish at least two (2) new market linkages and businesses opportunities in the alternative tourism sector.

• In partnership with internationally recognized organizations, train and certify at least one hundred (100) additional trainers on international quality standards and best practices in tourism and hospitality, of which at least thirty (30) percent are women.

• In partnership with the private sector, train and certify at least two thousand (2,000) additional tourism professionals (of which at least fifty (50) percent are women and at least thirty (30) percent are youth) including guides, service providers, and hospitality and service businesses throughout Tunisia, to deliver services at internationally recognized quality standards and best practices.

• Improve the efficiency, performance and profitability of at least five hundred (500) additional targeted businesses in the alternative tourism industry throughout Tunisia, of which at least thirty (30) percent of the businesses assisted are women-owned.

Expected Results (Two-Year Option Period)

• The additional campaigns increase the views on social media and international online travel services by at least an additional ten (10) percent.

• The additional alternative tourism products developed, each attracting at least ten thousand (10,000) tourists each per year by the end of the 2-year option period.

• At least twenty (20) new products, services and experiences are developed and promoted in major coastal resorts through day trips and night tours.

• The number of overnight stays in underserved regions of the country increases by an additional fifteen (15) percent.

• At least ten (10) new products, services and experiences are developed and promoted in major coastal resorts through day trips and night tours.

• At least a ten (10) percent increase per year in the number of businesses and tourism intermediaries that independently commercialize alternative tourism services and products to existing and new markets.

• At least eighty (80) percent of the trained tourism professionals are employed six (6) months after they are certified.

• Assisted businesses in the alternative tourism sector increase revenue by at least ten

(10) percent.

• Assisted businesses and partner private sector organizations in the alternative tourism sector generate an additional five thousand (5,000) jobs.

• At least an additional twenty (20) percent increase in visitor satisfaction at sites and businesses assisted under this project.

C.4.2 Increase tourism-related investment and revenue

Due to past demand, the bulk of development has been along the coastline, while inner

Tunisia continues to struggle from insufficient visitor flows. To diversify its offerings and draw more visitors to inner, underserved regions of the country, Tunisia needs to develop and promote its tourism facilities in remote areas of the country. This will require improving and developing local infrastructure, including tourist paths and signage, as well as enhancing visitor experience at potential tourism sites. This will require close collaboration with government, non-government and private sector stakeholders in the tourism industry to improve the management and promotion of these sites. Community participation is essential for sustainable tourism development, as tourism has a close relationship with the livelihood of the targeted communities. Destination management organizations can play an important role in engaging tourism stakeholders in collaboration, and in promoting and attracting investment and innovation.

Business opportunities for cultural and adventure tourism in non-coastal, interior regions have not matured because Tunisian businesses and their local communities lack the experience, resources, market access, and skills to commercialize these ventures. According to a 2017 study about destination-based tourism options in Tunisia, the growth of local businesses is sensitive to investment and professional expertise. The study confirms that the demand will increase when local and international private firms as well as tour operators develop tailored packages with options for sophisticated tourists to experience Tunisia’s local culture and its nature.

Tunisia needs to encourage tourists to venture out of resorts by providing them with options to spend more on tourism related goods and services. Previously, the World Tourism

Organization reported that average per capita spending for tourists in Tunisia stands at

$385, which is markedly less when compared to Egypt ($890), Turkey ($770), or Morocco

($725). The report found that Europeans stay much longer and spend more than their

Maghrebi counterparts.

Increasing the average per capita spending from tourists in Tunisia requires measurable interventions, such as increasing overnight stays and increasing expenditures on quality experiences, goods, and services. Tourism businesses will have to realize the needs and desires of more sophisticated tourists when creating and promoting such products and services. The following interventions address the main constraints in Tunisia’s tourism industry identified under this objective:

• In partnership with the private sector, local businesses and communities, improve and develop at least ten (10) tourist sites and facilities with commercial potential, including sites with religious or ethnic significance, in at least five (5) different geographic areas.

• In partnership with the Government of Tunisia and private sector organizations, facilitate and promote at least six (6) major events and festivals to attract visitors and generate positive media coverage, with an emphasis on underserved regions of the country with demonstrated tourism potential.

• Enhance the capacity of at least one hundred (100) local businesses and professionals to promote and commercialize the renovated sites and facilities, of which at least twenty (20) percent of the assisted businesses are women-owned enterprises.

• Mobilize private sector resources to increase access to finance for at least two thousand (2,000) Tunisian businesses and entrepreneurs in the alternative tourism sector, of which fifty (50) percent are women-owned and twenty five (25) percent are start-ups.

• By the end of the three-year base period, at least six thousand (6,000) additional tourists per year visit each of the newly renovated/upgraded sites and facilities.

• A total of at least two hundred (200) local community representatives and business owners contribute to the planning and development of sites and facilities in their respective locality.

• At least one thousand (1,000) individuals attend each major festival or event facilitated and promoted under this activity.

• At least ten (10) percent increase in average tourist spending.

• Increase revenue of assisted businesses promoting the renovated/upgraded tourist sites and facilities by at least ten (10) percent.

• At least twenty ($20) million of commercial credit and investment capital are mobilized for businesses and entrepreneurs in the alternative tourism industry, of which fifty (50) percent are women.

• In partnership with the private sector, local businesses and communities, improve and develop at least five (5) additional tourist sites and facilities with commercial potential, including sites with religious or ethnic significance, in at least two (2) different geographic areas.

• In partnership with the Government of Tunisia and private sector organizations, facilitate and promote at least four (4) additional major events and festivals to attract visitors and generate positive media coverage, with an emphasis on underserved regions of the country with demonstrated tourism potential.

• Enhance the capacity of at least one hundred (100) local businesses and professionals to promote and commercialize the renovated sites and facilities, of which at least twenty (20) percent of the assisted businesses are women-owned enterprises.

• Mobilize private sector resources to increase access to finance for at least one thousand (1,000) additional Tunisian businesses and entrepreneurs in the alternative tourism sector, of which fifty (50) percent are women-owned and twenty five (25) percent are start-ups.

Expected Results (Two-Year Option Period)

• At least six thousand (6,000) additional tourists per year visit each of the additional newly renovated/upgraded sites and facilities.

• A total of at least one hundred (100) local community representatives and business owners contribute to the planning and development of sites and facilities in their respective locality.

• Increase revenue of assisted businesses promoting the renovated/upgraded tourist sites and facilities by at least ten (10) percent one year after the assistance is provided.

• At least an additional ten (10) percent increase in average tourist spending.

• At least one thousand (1,000) individuals attend each major festival or event facilitated and promoted under this activity.

• At least ten ($10) million of additional commercial credit and investment capital are mobilized for businesses and entrepreneurs in the alternative tourism industry, of which fifty (50) percent are women.

C.4.3 Improve the enabling environment for sustained growth in the tourism sector.

The Tunisian government has a significant role in the tourism sector. The government owns, manages and promotes museums and key historical sites, and organizes and finances major festivals. The Ministry of Tourism and Handicrafts implements the government's policy in the tourism sector. Tourism policy has largely focused on promoting coastal regions, with the bulk of infrastructure investment targeting these regions. The National

Tourism Office (Office National du Tourisme Tunisien) is responsible for designing and implementing media campaigns for the tourist sector, and its regional offices in Kairouan, Djerba and Sfax, monitor the quality of tourist infrastructure as well as organize events and festivals. Other public institutions include the newly created workforce development authority (Agence De Formation Dans Les Métiers Du Tourisme) which prepares students for the professions of cooks, confectioners, waiters, receptionists, cleaning agents or tourist guides, and the Agency for Heritage Development and Cultural Promotion (L’Agence de

Mise en Valeur du Patrimoine et de Promotion Culturelle) established to manage and promote archeological and historical heritage sites.

Industry associations struggle to define effective channels of communication and advocacy with the government. The private sector, through industry associations and syndicates, need to play a leading role in identifying and advocating for a more enabling policy and regulatory environment for competitiveness and growth in the tourism sector. The Tunisian

Federation of Hotels (Fédération Tunisienne De L'Hôtellerie) promotes the sector, represents and defends its members in its relations with the government, and provides recommendations for tourism development. Supported by annual fees from private companies, the Federation Tunisienne Des Agences de Voyages et de Tourisme comprises tour operators and travel agencies as well as tourism transport. Established in 2014 to represent the economic interests of its members, the Tunisian Federation of Tourist

Restaurants aims to improve the regulatory environment for hotels, improve the quality of workforce in the restaurant sector, and develop and promote Tunisia’s culinary heritage. To achieve a sustainable, diversified and profitable tourism sector, it is important that Tunisia strengthens the capacity of business associations in the tourism sector, and facilitate transparent dialog to allow private sector associations to advocate for better business practices and legislation affecting the industry.

Furthermore, the response to the COVID-19 health emergency is putting huge pressure on public finances. The government needs to apply tools to offset the economic fallout of the crisis. The economic position of the country continues to evolve, making it difficult to assess what the exact impact on the sector and economy will be. Tunisia has already seen their tourism sector battered by travel bans, and it is therefore important to mitigate the potential negative impact on the sector and economy. This requires an exit strategy, a comprehensive recovery plan and unprecedented investment to mitigate the economic costs for businesses severely impacted by the crisis.

The following interventions address the main constraints in Tunisia’s tourism industry identified under this objective:

• Assist the Ministry of Tourism and Handicrafts in developing at least three (3) national strategies, tools, procedures or industry standards for alternative tourism.

• Assist the Ministry of Tourism and Handicrafts advance at least one (1) international agreement (such as the Open Skies agreement) to promote increased travel to Tunisia, spur high-quality job opportunities and increase economic growth.

• Through digital solutions, operating procedures, training, and stakeholder outreach, strengthen the capacity of the Ministry of Tourism and Handicrafts to accelerate the commercial growth of alternative tourism services and products, promote Tunisia as an alternative tourism destination, and attract private sector investment.

• Through digital solutions, operating procedures, training, and stakeholder outreach, strengthen the capacity of at least three (3) Tunisian industry organizations in alternative tourism to accelerate the commercial growth of services and products, promote Tunisia as an alternative tourism destination, and attract private sector investment.

• Encourage and facilitate dialogue between the public, and private sector as well as local communities throughout Tunisia to advance alternative tourism, with an emphasis on localities for which new tourism products and sites are developed.

• Strategies, tools, procedures or industry standards improve Tunisia’s alternative tourism and customer service rankings by at least ten (10) percent.

• All necessary analysis and technical assessments contribute to at least one (1) international agreement that advances high-quality employment and expands economic opportunities.

• The digital tools, training, and processes applied by the government and/or business associations result in at least fifteen (15) partnerships with international alternative tourism businesses and private sector organizations.

• Assist the Ministry of Tourism and Handicrafts to organize and implement at least two (2) international study tours and/or trade shows to introduce employees from other relevant ministries to best practices, promote Tunisia as alternative tourism destination, and facilitate international partnerships.

• At least six (6) events are planned, facilitated and implemented to encourage dialogue between national tourism industry associations and/or public sector organizations and/or local communities.

• Assist the Ministry of Tourism and Handicrafts in developing at least two (2) additional national strategies, tools, procedures or industry standards for alternative tourism.

• Through digital solutions, operating procedures, training, and stakeholder outreach, continue to strengthen the capacity of the Ministry of Tourism and Handicrafts to accelerate the commercial growth of alternative tourism services and products, promote Tunisia as an alternative tourism destination, and attract private sector investment.

• Through digital solutions, operating procedures, training, and stakeholder outreach, strengthen the capacity of at least two (2) additional Tunisian industry organizations in alternative tourism to accelerate the commercial growth of services and products, promote Tunisia as an alternative tourism destination, and attract private sector investment.

• Continue to encourage and facilitate dialogue between the public, and private sector as well as local communities throughout Tunisia to advance…