Issues: One of the main problems affecting the tourism sector in APEC economies is the presence of a large number of informal economic actors operating outside the legal framework. This can generate economic inequalities and limit the development of the tourism sector. Also, the adoption of digital tools can help economic actors to formalize and comply with legal requirements. However, many of these actors do not have access to appropriate digital tools, which limits their ability to formalize. As a result, they may not be aware of the options available to them. Even if informal economic actors know about the digital tools available, they may not have the capacity or resources to adopt and use them properly. That is why the project, seeks to provide a series of good practices of digital tools and capacity building of economic actors in the tourism sector to support and motivate formalization processes in the APEC region especially to economies with a high percentage of informal sectors contributing to GDP. In 2022, the World Bank and APEC Policy Support Unit (PSU) identified informal sector contribution of GDP as Peru (56. 6%), Thailand (47.7%), Russia (42.1%), The Philippines (38.1%), Brunei Darussalam (33.6%), Mexico (29.9%), Malaysia (29.3%), Korea (26.1%), Chile (18.7%), Indonesia (17.9%), Canada (15.5%), Australia (14.1%), Vietnam (14%), New Zealand (12%), Singapore (11.9%), China (11.2%), Japan (10.2%), and United States (8.2%)[1].
Some of the problems it seeks to address include informal economy in the tourism sector, lack of knowledge and access to formal tools for SMEs, scarcity of business skills and capacities, and lack of customized solutions according to the reality of APEC economies.
Informal economy: The project aims to reduce informal economy in the tourism sector by providing digital tools and formalization strategies. Informality can hinder economic growth, create inequalities, and make it difficult for economic actors to access resources and legal protection.
Lack of knowledge and access to digital tools: Many informal businesses may not be aware of the available digital tools that can assist in their formalization process. Therefore, the project aims to provide information, training, and access to these tools, enhancing their ability to meet the necessary legal and administrative requirements.
Scarcity of business skills and capacities: The lack of business skills and knowledge can impede the formalization of businesses. Therefore, the project seeks to strengthen business capacities in the use of digital tools, enabling them to improve their management, efficiency, and competitiveness.
Lack of customized solutions: Each APEC economy has specific characteristics and challenges. In this regard, the project proposes offering customized solutions adapted to the needs and specific context of each volunteer economy, increasing the effectiveness of formalization strategies.
In this framework, the project benefits economies with greater informal gaps in the tourism sector by proposing alternatives to implement public policies focused on economic growth, competitiveness, and regional cooperation.
Eligibility and Fund Priorities: This project meets the eligibility criteria of the ASF Digital Innovation Sub-fund given that the project will support capacity building needs and seek to identify digital tools that support the transition of tourism business to the formal economy improving the growth of the digital economy in the Asia-Pacific region. In this line, the project is aligned with the Key areas “Internet and Digital Economy Roadmap” on increasing trust and security in the use of ICTs, increasing the inclusiveness of the internet and digital economy and fostering interoperability, given that it supports the integration of tourism sector businesses into the formal economy. In this way, the project seeks to promote the digital economy in the APEC region through capacity building of the main stakeholders of the tourism value chain and the generation of debate on how technologies can support the solution of socio-economic problems in the APEC region as such the informality, and thus support the decision making of public agents and the promotion of productivity by the private sector.
Capacity Building: The proposed project has great potential to build the capacity of APEC member economies in the formalization of businesses in the tourism sector and the use of digital tools to facilitate this process. By providing a comprehensive literature and desk review of available digital tools that support business formalization in the tourism sector, and by identifying the main digital tools that can support business formalization in the tourism sector in APEC economies, this project can provide valuable and targeted information to businesses and relevant authorities in APEC economies on how to improve their formalization processes and use digital tools to make it easier and more effective. In summary, the proposed project has the potential to build the capacity of APEC member economies in the use of digital tools and business formalization in the tourism sector, and can provide specific and customized solutions to address the challenges faced by businesses in the tourism sector in each APEC economy.
The project aims to contribute in four aspects: identifying strategies for business formalization, enhancing capacities for implementation, proposing customized solutions aligned with APEC economies, and fostering collaboration and learning.
Business formalization: The project seeks to provide information and best practices on digital tools that support the formalization of tourism businesses. This will enable informal economic actors in the tourism sector to regularize their situation and operate within the legal framework. Formalizing these businesses will contribute to reducing the informal economy, promoting transparency, and equity in the sector.
Capacity building: Through workshops, training, and identification of relevant digital tools, the project aims to strengthen the capacity of APEC economies in using these tools and in business formalization processes. This will allow tourism sector businesses to maximize the benefits of digital technologies, improve their efficiency and competitiveness, thereby contributing to economic development.
Customized solutions: The project focuses on providing specific and customized solutions to address the challenges faced by tourism businesses in APEC economies. This involves identifying the particular needs and characteristics of each economy and providing tailored recommendations and guidance adapted to their specific context. This will help maximize the benefits and effectiveness of digital tools in each economy.
Collaboration and learning: The project will foster collaboration and knowledge exchange among APEC economies. By sharing best practices, lessons learned, and successful experiences in formalization and the use of digital tools in the tourism sector, mutual learning and increased regional cooperation will be promoted.
In summary, the project aims to drive the formalization of tourism businesses in APEC economies through the use of digital tools. This will not only benefit the businesses themselves but also contribute to sustainable economic growth, equity, and competitiveness in the regional tourism sector.
[1] (Andre Wirjo, Sylwyn Calizo Jr. and Rodrigo Balbontín, 2022)
