The
FINANCIAL -- WTO members on 12 July recognized tourism as an important services
export which can help small economies with their economic development.
Members
discussed tourism’s “value chains” at a meeting of the Committee on Trade and
Development’s Work Programme on Small Economies.
Tourism is now the third largest export in terms of
global earnings after fuel and chemicals, according to a representative from
the United Nations World Tourism Organization (UNWTO). Tourism is responsible
for one out of 11 jobs and 10% of the world’s economic output.
“It is
encouraging and interesting to see that small economies are really taking
advantage of the sector, especially in the last few years,” said Zoritsa
Urosevic, Head of UNWTO’s Geneva office.
Tourism
is of major importance to many developing countries, particularly for small
economies, WTO Development Division Counsellor Hans-Peter Werner said in his
opening remarks concerning a background paper prepared for the meeting,
according to WTO.
Core
components of tourism value chain include travel organization and booking,
transportation, accommodation, food and beverage provision, handicrafts,
excursions, as well as cultural and natural assets.
Besides
its direct contributions to the economy, tourism also yields indirect benefits
through government spending on infrastructure, domestic purchases of goods and
services inputs and investment flows. In addition, there are backward linkages
with agriculture, fisheries, construction, utilities and telecommunications.
Tourism has already played a vital role in helping members like Cabo Verde, the
Maldives and Samoa graduate from least developed country (LDC) status.
Presentations
from the Guatemalan Institute of Tourism and the South Pacific Tourism
Organization further underscored the significance of the sector to small
economies.
It was
stressed that trade and tourism policymakers must work together to enhance the
sector’s contribution to small economies. Speakers at the meeting also said
there was a need to enhance links with other industries and to improve the business
environment to attract investments.
Strong
action around a tourism export strategy must be shared by trade and tourism
ministries, said Anton Said, the International Trade Centre’s (ITC) chief of
export strategy. Such a strategy must address gaps in supply-side capacities,
the quality of the overall business environment, and ease of market entry, as
well as keeping sight of development goals, he said.
“There
needs to be a cohesive, coherent outlook,” said Mr Said. “At the end of the
day, tourism is an export.”
The
secretariat paper similarly cited the need for strong coordination across
different ministries and implementing agencies due to tourism’s backward
linkages with other industries. The paper recommended developing an
understanding of each small economy’s assets and the type of tourism suitable
to it.
WTO
Services Division Counsellor Dale Honeck added that tourism’s forward linkages
must also be taken advantage of, as there are opportunities in such areas as
medical tourism, hosting business conventions, and encouraging investment in
second homes or retirement residences.
In
addition, tourism’s value-added to an economy can also be increased by
attracting a more diverse mix of tourist arrivals, using e-commerce to broaden
the reach of local tourism businesses, and broadening the offer to include
cultural, wildlife, and heritage tourism, Mr Honeck said.
Gib
Brown, a development advisor with the United States Agency for International
Development (USAID), emphasized the need to develop a base level of resources
to underpin tourism development and visitor growth. He said it was important to
implement tourism development strategies in stages and to pay attention to
sequencing.
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