Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
UNCTAD
Preparing for a Successful
GATS Negotiations Round
UNCTAD
Commercial Diplomacy Programme
May 2002
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Why Tourism?
UNCTAD
Positive facts about tourism 1992-1998
• The African region showed a growth rate of 7.8 % in arrivals,
nearly twice the world average.
• High concentration of international tourism arrivals in Africa
• Tourism revenues:
– one of the five leading sources of export revenue for 69
developing countries
– main source of foreign currency in 28 countries
Saturday, 28 May 2016
© National Workshop on WTO Negotiations on Services
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Why Tourism?
UNCTAD
The “Big Ticket” Item
• Important potential for wealth
• Multiple positive spillover effects
• Transform vicious circle of poverty into
virtuous circle of growth
• Opportunities for SME, women, youth
• Diversification of income generation
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Leakages
UNCTAD
But Also the “Big Problem” Item
• Internal Leakages: import component, royalty
payments.
• External Leakages: control of inflows and
outflows by vertically integrated operators.
• Invisible leakages: tax evasion, unsustainable
use of destination resources.
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Possible Remedies
UNCTAD
Minimizing External Leakages?
• Coherent tourism policies
• Effective mechanisms against anticompetitive
practices.
• GATS negotiations to strengthen international
competitiveness
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Sustainability prerequisites
UNCTAD
Is Tourism in Developing Countries Sustainable?
Yes, if tourism revenues are:
• Allocated evenly and equitably;
• Increasing over time; and
• Allowing for the sustainable use of all
destination resources required for tourism.
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Arrival & Income Trends
UNCTAD
Country
Tourist Arrivals
Tourist Income
Income per Tourist
(000)
(U.S.$ m)
1992
1999
(U.S.$)
1992
1999*
1992
1999
Growth in
Tourist
Arrivals
1992/1999
Growth* in
Income Per
Tourist
1992/1999
Trends in Tourist Arrivals and Income per Tourist 1992-1999
Selected COMESA Countries
Egypt
2944 4490 2165
3287
735
732
53%
0%
Ethiopia
83
92
28
13
337
146
11%
-57%
Kenya
782
857
394
256
504
299
10%
-41%
Malawi
150
254
8
17
53
66
69%
24%
Mauritius
335
578
299
459
893
794
73%
-11%
Uganda
92
205
38
99
413
481
123%
16%
Zambia
159
456
51
72
321
157
187%
-51%
Zimbabwe
738
2101
96
170
130
81
185%
-38%
* Adjusted $ figures, using U.S Consumer Price Index deflator
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
UNCTAD
The Challenge:
Establish coherent national tourism policies that would
strengthen competitiveness and sustainability of
international tourism.
Requires a national assessment study of tourism.
This involves:
Consultations with stakeholders
Intra-Governmental coordination
Saturday, 28 May 2016
© National Workshop on WTO Negotiations on Services
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Consultations
UNCTAD
Who Should Be Involved?
• Local exporters of tourism services
• Representative of foreign tourism firms with
local presence
• Regulatory bodies (incl. licensing boards)
• Tourism trade associations
• Local population/consumers groups
• Operators in other sectors of the economy
Saturday, 28 May 2016
© National Workshop on WTO Negotiations on Services
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Consultations
UNCTAD
Why Is This Difficult?
• Understanding how to maximize benefits from tourism
• Getting updated information about trade in tourism
services (TSA)
• Adjusting statistical surveys to reflect proportion of SME
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Consultations
UNCTAD
Objectives:
• Learn who is already exporting tourism services, and to
whom
• Learn what will improve competitiveness of local
suppliers
• Identify both export and import interests (both requests
and offers)
•
Saturday, 28 May 2016
Asses the impact of additional GATS-liberalization on
national export and development objectives
© National Workshop on WTO Negotiations on Services
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Coordination
UNCTAD
Intra-governmental
• Wide range of agencies, regulatory bodies and
ministries are involved, both directly and
indirectly.
• Tourism often regulated at municipal level
• Ensure understanding of scope and content of
the GATS among interest groups
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Coordination
UNCTAD
Why Is Coordination Important?
• To base government position on a complete assessment
of key national priorities
• To create an information base on measures affecting
trade in tourism (and other) services
• To analyze the effect of specific measures on the
achievement of national policy objectives
• To avoid duplication in consultations of stakeholders
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
Impact of tourism
• Employment
• Foreign exchange,
receipts and taxes
• Linkages and leakages
http://www1.oecd.org/publications/e-book/7801011E.PDF
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
“Road-map” to the Sector
• Current size of the sector and present benefits
• What else is missing?
• Match your marketing to existing and potential
demand
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
Get the Facts…
•
•
•
•
•
Saturday, 28 May 2016
Tourist arrivals
Country of origin (origin markets)
Average length of stay
Tourist Expenditures
Booking channels
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
… & Understand the Motives
• Ecotourism
• Cultural tourism
• Adventure Tourism
• Events specific tourists (e.g. researchers)
• Other specialty – niche markets
• Seasonality of arrivals
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
Assess Your Comparative Advantage
• Natural beauty
• Wildlife
• Cultural heritage
• Man made attractions
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
Take Stock of Facilities
• Availability,
quality
and
occupancy
rates
of
accommodations
• Geographic distribution of hotel rooms
• Hotel ownership and investment modalities
• Hotel classification and norms, incl. environmental
criteria
Saturday, 28 May 2016
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
A tourism assessment
UNCTAD
Constraints to Tourism Growth
• Climate
• Health
• Security
• Quality of infrastructure (incl. international
air transport)
• Human resources
• Effective promotion
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Preparing for a Successful Negotiations Round –
Issues to Consider in a National Assessment Study of Tourism.
Is it worth the effort?
UNCTAD
Overall Trends in
Worldwide Export Earnings (US$ billions)
International Tourism
Tourism (including fare receipts)
Automotive products
Tourism receipts market share (%)
Middle
East
Africa
2%
EAP 2%
15%
Food
Fuels
Textiles and clothing
South
Asia
1%
Telecommunications equipment
Iron and steel
International Fare Receipts
0
100
200
300
400
500
600
Europe
53%
Americas
27%
Sour ce: OM T / WT O dat abase.
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