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The Impact of USAID Programs in Timor-Leste

USAID Programs in Timor-Leste
In 1975, Timor-Leste declared independence from Portugal. In the same year, Indonesia launched a military invasion and annexed the fledgling state. In 1999, 78% of Timor-Leste’s population voted for independence from Indonesia, and in 2002, Timor-Leste finally gained full independence. The nation’s road to independence was anything but smooth, especially considering that anti-independence Indonesian militias conducted a scorched earth campaign in 1999, which led to the deaths of 2,600 civilians and the displacement of 30,000 locals. Despite these setbacks, Timor-Leste has grown into a strong democracy with multiple peaceful transfers of power.

While Timor-Leste has consolidated its political institutions, the Global Hunger Index describes the hunger level in Timor-Leste as “serious” in 2021, ranking the nation 108th out of 116 countries in terms of hunger severity. In addition, Timor-Leste ranks 121st out of 190 countries in nominal GDP per capita at $2,377 as of 2017. USAID programs in Timor-Leste continue to support Timor-Leste’s democratic institutions while also working to address Timor-Leste’s economic and infrastructural setbacks.

USAID’s Tourism for All

Launched in 2018, USAID’s Tourism for All initiative aims to promote Timor-Leste as an internationally competitive tourism destination. The project goal is to “diversify [Timor-Leste’s] economy by promoting eco-friendly tourism based on the country’s rich heritage” and promote sustainable investments from the private sector by locals, international institutions and NGOs.

One accomplishment of the Tourism for All initiative in promoting sustainability and independence from assistance is training local Timor-Leste citizens. USAID gave 611 participants in the private and public sector more than 11,000 hours of job training in hospitality, tourism and food safety. This training aims to foster a new generation of Timor-Leste locals to continue sustaining Timor-Leste’s tourism industry independent of external assistance.

In 2019 and 2020, the COVID-19 pandemic put a halt to Timor-Leste’s tourism industry. However, the local Timor-Leste “Ha’u Nia Timor-Leste” campaign and USAID’s Tourism for All initiative helped pivot Timor-Leste’s tourism industry from focusing on foreign tourism to placing a greater emphasis on domestic tourism.

This partnership is based on the idea of national love for Timor-Leste and solidarity with the struggling tourism industry in the face of the pandemic. USAID describes one of the objectives of this campaign as “inspiring Timorese people to engage in recreational travel on a more regular basis and to consider taking up leisure activities such as scuba diving.”

USAID Customs Reform Project

To address Timor-Leste’s financial issues, the USAID Customs Reform Project, which began in 2017, seeks to make trade easier with Timor-Leste by implementing standard customs clearance and transit procedures. This initiative has provided Timor-Leste with technical assistance and reformed Timor-Leste’s customs process to better facilitate trade and increase domestic revenues. One way the USAID Customs Reform Project is making transit into Timor-Leste more efficient is through the development of the Inter-Ministerial Despacho in 2019 to standardize and integrate the operating hours between customs authority and other government agencies.

To further facilitate transit into Timor-Leste, the Customs Reform Project has been implementing anti-corruption measures. In 2019, the USAID team began to develop training material for a Code of Conduct. Furthermore, during the same year, the USAID Customs Reform Project developed an Interests, Assets and Liabilities Declaration form that any customs authority staff must complete. These employees must declare their own and their direct family’s financial interests, assets, liabilities and any potential conflicts of interest. These drafted reforms intend to stifle corruption while ensuring the more efficient transit of goods in Timor-Leste.

Looking Ahead

USAID programs in Timor-Leste promote economic investment, anti-corruption measures and the elimination of unnecessary trade barriers. While Timor-Leste has come a long way since its independence from Portugal and Indonesia, economic issues and oil dependency still plague Timor-Leste. USAID programs in Timor-Leste continue to play an important role in addressing and mitigating these issues.

– Alexander Richter
Photo: Flickr

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The Growing Importance of the Tourism Sector in Timor-Leste

Tourism Sector in Timor-Leste Oil accounts for 90 percent of Timor-Leste’s government revenue, but since 2017 the government has focused on diversifying the economy, attracting investors and developing its rising tourism industry. The small island country gained independence in 1999 and reduced its poverty rate from 50.4 percent in 2007 to 41 percent in 2014. It plans to develop the tourism sector in Timor-Leste in order to attract new visitors, increase revenue

and add jobs. USAID, Chemonics and private investors are seeing economic opportunity in the emerging tourism sector.

Benefits of Tourism Industry Investments

The benefits of developing the tourism sector in Timor-Leste include job creation and increased revenue. Poverty-reduction policies, health care and improved education are possible uses of much-needed revenue to the developing economy. The government’s goal is to attract 200,000 annual international tourists by 2030, which would generate $150 million and add 15,000 local jobs. For reference, total revenue for Timor-Leste was $300 million in 2017. Chemonics is currently working with the government and USAID’s Tourism for All Project to develop Timor-Leste’s tourism industry.

Since the tourism sector in Timor-Leste is new, one task stated by Peter Semone, chief of party for the USAID Tourism for All Project, is to explain the benefits of tourism to Timorese that might object to the rising tourism industry, especially in terms of its environmental impact. Marine tourism, particularly on Atauro Island, is expected to flourish once the tourism industry is further developed. One priority is convincing wary Timorese that the rising tourism industry means increased revenue to the government or directly through selling services and/or products.

Achievements by USAID’s Tourism for All Project

The USAID Tourism for All Project began in January 2018 and is slated to end in January 2021. Its goal is to expand and improve the Timorese tourism industry using a comprehensive and sustainable approach. The project costs $9 million and its focus is directed towards two main areas: ensuring laws, institutions and policies are in place to implement the national tourism policy that began in 2017, providing sustainable private sector tourism investments and participation by Timorese communities and replicating successful models for future use.

There are five major achievements of the USAID Tourism for All Project. One accomplishment of USAID’s coordination with the government of Timor-Leste is the registration for a Mt. Ramelau Tourism Partnership that is currently in progress. Mt. Ramelau is a sacred mountain and major tourist attraction. USAID also facilitated the process of Atauro Island residents creating a vision, mission and tourism action plan for the next three years and began registration for the Tourism Partnership of Atauro. Atauro Island is the most marine biodiverse location in the world. USAID and Timor-Leste anticipates a booming ecotourism industry on the island.

Grants programs were also launched under the project to encourage tourism entrepreneurs to invest in targeted areas. One final achievement is the establishment of a working group involving the Secretary of State for Arts and Culture, UNESCO and local non-governmental organizations for conservation and preservation of tais, a hand-woven textile used to make scarves and bags. Tais was proposed for UNESCO Intangible Cultural Heritage recognition.

Future Economy of Timor-Leste

Semone stated that “tourism is the base to improve the service industry and the culture of service in the country. It is also an excellent factor to foster the development of a private sector of SMEs but also a way to raise environmental consciousness for locals.” With the help of Chemonics, USAID and other organizations, Timor-Leste’s tourism sector shows promise in reaching the goal of attracting 150,000 international tourists and adding 15,000 by 2030.

– Lucas Schmidt
Photo: Flickr