Tourism is the only major sector in international trade in services in which developing countries have consistently had surpluses; the positive balance in their travel account has improved from US$6 billion in 1980 to US$62.2 billion in 1996. Developing countries today thus account for nearly 30 per cent of world tourism receipts.
Ways to strengthen the capacity of the tourism sector in developing countries are being explored this week (from 8 to 10 June) in UNCTAD by experts from over 50 countries, and from international organizations, such as the World Tourism Organization and the International Civil Aviation Organization, as well as companies and national institutions and associations.
In his opening address to the expert meeting, yesterday, the Secretary-General of UNCTAD, Mr. Rubens Ricupero, suggested that, in the light of structural and technological change in the world economy, tourism could replace the role of textiles and garments as a starting point for economic take-off in many developing countries. These countries could exploit the potential of tourism to integrate into the international economy, rather than following the traditional path of industrialization, he said.
Growth through the export of traditional products, such as textiles, is today hampered by excessive competition and restricted market access, the Secretary-General pointed out. Moreover, for least developed and island-developing countries, tourism is one of the few options, if not the only one, for export-oriented development in the medium-term.
During an informal panel discussion yesterday, Mr. Ricupero suggested that developing countries consider resorting to the WTO dispute settlement procedure where anti-competitive practices in tourism services may have occurred.
Mr. Ricupero exhorted developing countries to develop a negotiating strategy to ensure that the principles incorporated in Articles IV and XIX of the General Agreement on Trade in Services (GATS) - referring to increasing the participation of developing countries and to a progressively higher level of liberalization in trade in services - can materialize. The Secretary-General stressed the importance of learning from the past experience of the meeting’s participants, so as to be able to formulate negotiating proposals.
Mr. Ricupero and Mr. Francesco Friangialli, Secretary-General of the World Tourism Organization, both pointed out that, whereas there are few obstacles related to foreign commercial presence in tourism, improvements in conditions governing the international movement of people - a key factor in this sector - are needed.
Mr. Friangialli urged developing countries to keep to the minimum the limitations they apply to their tourism-related GATS commitments. On the other hand, he said, in order to facilitate the development of the tourism sector in developing countries, special mechanisms should be included in the framework of the Lomé Convention which governs economic relations between the European Union and the 71-member Asia, Caribbean and Pacific grouping, and in regional agreements such as EURO-Med.
The Secretary-General of the World Tourism Organization called for the establishment of a special regime covering national Tourism Offices abroad in order to facilitate their tasks. Finally, he said, a common and internationally agreed definition of tourism was needed, for statistical purposes and international negotiations. The World Tourism Organisation was working on such a definition, which will need the approval of the international community.
The heads of UNCTAD and the World Tourism Organization pledged to cooperate to help developing countries strengthen their tourism sectors.
Following his election as Chairman of the meeting, Mr. Federico Cuello, Vice-Minister of the Presidency of the Dominican Republic, yesterday explained how tourism has in recent years replaced exports of traditional commodities, such as sugar and coffee, as the main source of domestic revenue in his country. The Dominican Republic’s tourism sector in his country had encountered virtually all the problems set out in the background note prepared for the meeting by the UNCTAD secretariat (TD/B/COM.1/EM.6/2), he said. (As Vice-Chairman-cum-Rapporteur, Mr. Joaquin Arceniegas (Spain) was elected.)
According to UNCTAD, the positive economic impact of tourism is felt in terms of foreign exchange earnings, tax revenues, investment and job creation. These positive effects, however, can be counteracted by the remittance of foreign exchange earnings abroad, and by an inability to deal with the effects of man-made and natural disasters.
Against the background of rapid growth in travel and tourism, the UNCTAD expert meeting is discussing the importance of marketing tools and market access in the light of technological developments.
The objective is to identify means by which governments could better support the private actors in the tourism sector so as to maximize the overall benefits to economic growth, including through regional and sub-regional agreements. The other key goal is to encourage active participation by developing countries in the multilateral negotiations on trade in services aimed at improving their market access and export earnings in tourism-related services.
The need for coherent and consistent policies in the tourism and air transport sectors is also being discussed. Consolidation and privatization in the air transport industry is exerting pressure for change in domestic, regional and international air transport regulations. Air transport is the only services sector which has largely been left out of the disciplines of the General Agreement on Trade in Services (GATS). However, the GATS Annex on air transport is due for revision in the year 2000, and there will be a need to examine its operation and the possible expansion of its scope.
Global Distribution Systems (GDSs) are of key importance to suppliers of tourism services worldwide. However, the control of the major systems by a small number of companies may represent a market access barrier to smaller suppliers in developing countries, be they airlines, hotels, tour operators or travel agencies. Although codes of conduct have been enacted to counter the anti-competitive potential of GDSs, one of the major weaknesses in their operation is the absence of a multilaterally agreed set of rules and its corresponding dispute settlement system, to protect the weaker players.
Mr. Friangialli and the Minister of Tourism of Tunisia, H.E. Mr. Slaheddine Maaoui, spoke of the high dependence of developing countries on developed country large tour operators. For Mr. Maaoui, the asymmetry of bargaining power between such tour operators and their counterparts in developing countries has created distortion in the tourism sector. This had resulted in fierce competition, a sharp decrease in prices and lower quality services, which negatively affect local services providers in developing countries. Developing countries should therefore make a common effort to set up a policy which could help reinstate fair rules in the distribution market and preserve the interests of weaker partners. Tunisia was willing to host a conference on this issue with the support of UNCTAD and the World Tourism Organization, which tour operator would also attend, and where all interested countries could table practical and constructive suggestions.
