Market-Based Solutions for Impact in Tourism Destinations

In this session, Eric Schütz, from GIZ, and Jost Neumann, from TUI Care Foundation, presented market-based solutions to create impact.

GIZ is a service provider in the field of international cooperation, being the main implementor for Germany's Ministry for Economic Cooperation and Development. Eric explained that Lab of Tomorrow is a project with no commercial interest that kickstarts businesses and development in emerging markets.

In this session, Eric Schütz, from GIZ, and Jost Neumann, from TUI Care Foundation, presented market-based solutions to create impact.

GIZ is a service provider in the field of international cooperation, being the main implementor for Germany's Ministry for Economic Cooperation and Development. Eric explained that Lab of Tomorrow is a project with no commercial interest that kickstarts businesses and development in emerging markets. They do all of this while promoting sustainable economic development through user-centred solutions which create impact for the achievement of long-term SDG impact.

He then explained that the creation of impact can either be through project-based or venture-based solutions.

  1. Through project-based solutions, the support and conduction of a project take place over a defined timeframe and result.
  2. Through venture-based solutions, market-based solutions are kickstarted and the private sector is engaged, but there is a higher risk per solution.

Eric provided an overview of how Lab of Tomorrow develops sustainable business in collaboration with the TUI Care Foundation. All of the projects they apply are programmes of between six months and one year, being sector and region agnostic.

He briefly explained the process they go through. In the first phase, the challenge is thoroughly examined, they check where the needs are and study the market. With the specific challenges already defined, they move on to phase 2 and bring enhanced-selected global, regional and local companies which bring in expertise and resources to the target group, helping them to come together with partners and develop impactful solutions. They then ideate solutions with companies, and they then incubate the business of the ventures. Finally, with the help of investors, they are leading sustainable development.

Eric provided a quick overview of the successful case of Maisha Meds, a digital tool for medication procurement, before naming some of their projects across the globe:

The project they have in Egypt was developed after the TUI Care Foundation reached out to GIZ due to the lack of skills of the staff in the Egyptian tourism sector. To solve the issue, they focused on six sub-challenges, namely job quality, management training, diversity and inclusion, on-the-job and practical training, pre-job training and re-integration of former staff.

Through their 'Biodiversity Protection Pays Off Digitally' project in Namibia, also in collaboration with the TUI Care Foundation, they aimed to increase local incomes through jobs dependent on biodiversity and to facilitate the development of virtual tourism products. Their sub-challenges focused on digital wildlife experiences for tourism and zoos, incentivise nature engagement virtually, digital co-creation opportunities for local artisans, gamified biodiversity experiences for gamers and nature lovers, and increase spending for nature protection.

After Eric's intervention, Jost offered his perspective from the TUI Care Foundation's side as endorsers of the Lab of Tomorrow. The TUI Care Foundation is a charitable, independent, donation-based and destination-focused European organisation.

They have two main types of activities: Long-term Programmes and Corona Response Activities. Through their Long-term Programmes, they focus on youth and education, the natural environment and economic development. On the other hand, their Corona Response Activities support communities in holiday destinations badly affected by the crisis through three different initiatives: 100 helping hands, the Food security initiative and the Tourism recovery programme.

Jost then provided an overview of their 2030 strategy, which has market-based impact and venture philanthropy as key points. They want to empower entrepreneurs and communities, attract sustainable and impact-oriented investors to tourism destinations, blending finance with other types of funders, and create self-sustaining systems of positive impact.

He highlighted that the work of the TUI Care Foundation is more than financial support, with them leveraging networks and expertise, offering mentoring, enabling access to market and partnerships, and advocating for further funding.

Once their presentation was over, Nick jumped in and asked a series of questions.

How do you create this type of cooperation? What is the motivation for the private sector to get involved?

Eric explained that the main interest comes from the impact and business growth generated, but also from the potential income which conveys this type of project.

How do you measure success?

Eric mentioned they usually measure success based on the income and awareness creation of the project.

How important is the exposure and support for ventures?

Jost expressed the importance of this for new businesses, as it allows for acceleration, customer validation at a global level, all while reaching out to international markets.


Key Takeaways

1. Collaboration between powerful organisations can result in great resources, material and intellectual, for small new businesses.

2. Empowering entrepreneurs and communities can have a strong positive financial result.

Published on:
December 2021
About the contributor

Eric Schuetz

Eric has been connecting and supporting companies, helping them to create a new business that is profitable but also impactful through the lab of tomorrow program for the last 3 years.

Jost Neumann

Before joining TUI Care Foundation as the Head of Economic Development, Jost worked in ICT, sustainable land-based investments and humanitarian aid for more than 5 years. He is passionate about emerging technology, the impact economy and advancing market-based solutions in low-income countries.