For many developing countries, tourism is a major source of external revenue and employment creation, and the development of tourism is given an important place in national development strategies. Tourism growth in the Asia-Pacific region was one of the strongest among world regions with an average growth rate of 7.5 per cent in 2006. However, ensuring the poverty reduction impact of mainstream tourism is less well understood by policy-makers and the private sector.

The adoption of a value chain approach to tourism development offers considerable opportunities for scaling-up pro-poor sustainable tourism. Tourism is well placed to increase incomes and create employment opportunities for poor households through destination development; local sourcing of produce, local production of handicrafts; new products and services; and strengthening value chains of produce, products and services. Many tourist destinations are in remote and marginalised areas. Reaching the poorest communities as well as shifting from a specialist, niche-market approach to a mainstreaming approach means that the potential impact is high.

SNVs reputation in the sector in the region is well-established and donor interest is strong (ADB, Asia Invest/EU, UNWTO/STEP foundation, AECI, NZAid).