Introduction
Shopping is a key component of any holiday and more often than not, tourists want to buy goods that are particular to the destination they are visiting. The money spent by holiday makers in the local economy makes a direct contribution to raising the household incomes in local communities. It also provides an enhanced experience for tourists.

Tourism brings international consumers and domestic urban based consumers to rural and marginal areas and creates opportunities to purchase crafts and local produce. Complementary products, such as crafts present opportunities for developing products. These products are then directly exported by the visitors and are seen as non-competitive with accommodation, activities and sight-seeing excursions.

Commission structures can mean that there is little scope for local producers to earn a profit because of the margins paid to tour guides. It can be hard to break into the market and persuade excursion groups to stop at a new stall or market, because guides rely on established commissions from their existing stopovers. Another common problem for local producers is the difficulty of competing with cheaper imports. Local producers not only face competition on price but also consistency and quality, all of which need to be addressed.

The Opportunity
One way of raising tourism expenditure without raising the ‘cover price’ of a holiday is to provide tourists with high quality opportunities to spend more while in the destination.

Local craft sales are boosted by:

• Products specific to the destination
• More production on-site, at the stalls
• A range of differentiated products: not all vendors selling the same.
• Product innovation: combining local skills with modern preferences
• Less hassle of tourists: harassment stops sales.
• Price information tourists
• Better quality products
• Better presentation of products
• Ensuring products can be packed and are transportable
• Sales inside hotels
• Labelling and interpretation to tell ‘the story’ and thus add value
• Tailor-made items made to order (e.g. personalised with names)
• Code of conduct among sellers governing behaviour, prices, location, management of environmental impacts of materials used etc.
• Art and craft areas or clusters, where tourists can see producers and competition drives innovation
• Reputation and popularity (the idea of ‘must-have’ souvenirs)

Who Can Help?

Hotels & Resorts

Guest Houses, Small Hotels & B&Bs

Restaurants, Cafes & Bars

Retail: Markets & Shops

Cultural Heritage Sites

Protected Areas

Other Visitor Attractions

Local Guides

Local Operators & Ground Handlers

Outbound Operators

Words of Caution

• Avoid raising the expectations of the poor. Be sure about the market at a given price and quality and then begin the process of creating appropriate supply, clear in the knowledge about what the market will purchase.
• Think carefully about whether or not there is adequate local demand from visitors to create a viable market.
• If goods and services are developed for which there is no local demand the initiative will fail, if the supply exceeds demand then prices will fall. The initiative will fail to make the anticipated contribution to local incomes and if the community has borrowed money in anticipation of selling to tourists then financial ruin is a real risk.
• Consider whether increasing competition is really the best way of supporting poor producers. Excessive competition between producers can drive prices down and reduce profits.