Study to Generate Digital Tools for the Transition to Formal Economy of Tourism Businesses in the Asia-Pacific Region

APEC Tourism Working GroupFebruary 2025 Study to Generate Digital Toolsfor the Transition to FormalEconomy of Tourism Businessesin the Asia Pacific Region APEC Tourism Working Group February 2025 APEC Project:TWG 02 2023 A Produced by:Equilibrium Business Development Consulting335 Enrique Palacios St., office 703, Miraflores,Lima, PeruTel. (+51) 933 690 504Email: dlicheri@equilibriumbdc.com Project Overseer:Paul Mario Ramos ÑufloMinistry of Foreign Trade and Tourism of PeruCalle 1050, San Isidro, Lima, PeruTel. (01) 5136100Email: pramos@mincetur.gob.pe ForAsia-PacificEconomic Cooperation Secretariat35 Heng Mui Keng TerraceSingapore 119616Tel: (65) 68919 600Fax: (65) 68919 690Email: info@apec.orgWebsite: www.apec.org © 2025 APEC SecretariatAPEC#225-TO-01.3 Cover image:Image generated by artificial intelligence@MINCETUR INDEX EXECUTIVE SUMMARY6 1. 1.1.OBJECTIVES AND SCOPE OF THE PROJECT1.2.KEY ACHIEVEMENTS AND OUTCOMES1.3.HIGHLIGHTS OF THE IMPLEMENTATION PROCESS81011 2.CONTEXT AND BACKGROUND12 2.1.DESCRIPTION OF THE PROJECT CONTEXT2.2.RELEVANT BACKGROUND AND IDENTIFIED CHALLENGES2.3.FRAMEWORK AND RELATED DOCUMENTS131825 3.STUDY AND WORKSHOP RESULTS29 3.1.KEY FINDINGS FROM THE RESEARCH AND BACKGROUND PAPER3.2.DEVELOPMENT AND RESULTS OF THE WORKSHOP3.3.HIGHLIGHTED PRESENTATIONS AND DISCUSSIONS3.4.CONCLUSIONS AND RECOMMENDATIONS FROM THE WORKSHOP DRAFTING30384459 4.RECOMMENDATIONS AND FUTURE ACTIONS60 4.1.RECOMMENDED ACTIONS BASED ON THE RESULTS4.2.STRATEGIES FOR IMPLEMENTING PROPOSED SOLUTIONS4.3.PLANS FOR ONGOING MONITORING AND EVALUATION616368 5.LESSONS LEARNED AND BEST PRACTICES71 5.1.BEST PRACTICES AND RELEVANT EXPERIENCES5.2.HIGHLIGHTS OF THE PROCESS AND RESULTS5.3.KEY LESSONS IDENTIFIED DURING IMPLEMENTATION727476 6.CONCLUSIONS AND CLOSURE6.1.SUMMARY OF ACHIEVEMENTS AND OVERCOME CHALLENGES6.2.FINAL REFLECTIONS AND FUTURE PERSPECTIVES6.3.ACKNOWLEDGMENTS AND RECOGNITIONS 7.ANNEXES ANNEX 1: DESCRIPTION OF 14 TOURISM AND E-FORMALIZATION CASESANNEX 2: POST-WORKSHOP SURVEY TO MEASURE THE LEVEL OF KNOWLEDGEANNEX 3: WORKSHOP AGENDAANNEX 4: FINAL ATTENDANCE LISTANNEX 5: REFERENCES AND SUPPORTING DOCUMENTS84909296100 EXECUTIVESUMMARY Business formalization in the tourism sectorrepresents a crucial challenge in the economies ofthe Asia-Pacific region. High informality in this sectornot only limits economic growth, but also generatesinequalities and hinders the implementation ofeffective policies. This phenomenon is especiallyrelevant in the context of tourism, which is vitalfor connectivity and sustainable economicdevelopment in the region. The COVID-19 pandemichas exacerbated these problems, further raisinglevels of informality in the sector. However, the rapid adoption of digital technologiessince the early 2020s has provided a significantopportunity for economic resilience and thepossibility of a recovery in tourism. Recognizing theimportance of addressing informality and leveragingnew technologies, APEC has identified the transitionto formality as a strategic priority. In this context, the project “Study and Workshopto Generate Digital Tools for the Transition to theFormal Economy of Tourism Businesses in theAsia-Pacific Region (TWG 02 2023A)” is developed.This project aligns with the Tourism WorkingGroup (TWG) Work Plan 2023 and supports theimplementation of the APEC Tourism StrategicPlan 2020-2024, focusing on the priority areasof “Digital Transformation” and “Human CapitalDevelopment”. Its main objective is to identify andassess available digital tools that can support theformalization of businesses in the tourism sector ofAPEC economies, fostering digital connectivity andfacilitating the transition of informal economic actorsto the formal economy. makers, business sector representatives andacademics to discuss and share perspectives onthe use of digital tools to promote formalization inthe tourism sector. Interactive sessions and paneldiscussions encouraged the exchange of ideas andcollaboration among attendees. The results of the project were significant: •Expert interviews and a literature review wereconducted to provide key insights on the stateof tourism in APEC economies, informality, anddigital tools that promote the transition to theformal economy. •Specific cases originating or applied in APECeconomies were identified and shared,highlighting the benefits and effectiveness ofdigital tools in boosting commercial activitieswhile transitioning to formality. The project methodology was developed in twophases: the first phase focused on research, whereinformation was gathered from primary sources,through virtual interviews with experts in tourism andformalization, as well as from secondary sources,through a literature review of key cases and policies.Policies, actions and programs implemented invarious APEC economies and other regions werefound, identifying 14 cases that demonstrated howdigital tools can foster the transition to formality inthe tourism sector. •Connections