Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study...

Wednesday 19 April 2023 © National Workshop on WTO Negotiations on Services 1

Preparing for a Successful Negotiations Round –

Issues to Consider in a National Assessment Study of Tourism.

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Preparing for a Successful

GATS Negotiations Round

UNCTAD

Commercial Diplomacy Programme

May 2002




UNCTADUNCTADPositive facts about tourism 1992-1998

Why Why Tourism?Tourism?

• 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




UNCTADUNCTADThe “Big Ticket”

Item

Why Why Tourism?Tourism?

• 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




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• 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.

But Also the “Big Problem” Item

LeakagesLeakages




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• Coherent tourism policies

• Effective mechanisms against anticompetitive practices.

• GATS negotiations to strengthen international competitiveness

Minimizing External Leakages?

Possible Possible RemediesRemedies




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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.

Sustainability Sustainability prerequisitesprerequisites

Is Tourism in Developing Countries Sustainable?




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Country

Tourist Arrivals (000)

1992 1999

Tourist Income (U.S.$ m)

1992 1999

Income per Tourist (U.S.$)

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

Arrival & Income Arrival & Income TrendsTrends




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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 stakeholdersIntra-Governmental coordination




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• 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

Who Should Be Involved?

Consultations Consultations




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• Understanding how to maximize benefits from tourism

• Getting updated information about trade in tourism services (TSA)

• Adjusting statistical surveys to reflect proportion of SME

Why Is This Difficult?





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• 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)

• Asses the impact of additional GATS-liberalization on national export and development objectives

Objectives:





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• 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

Intra-governmental

CoordinationCoordination




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• 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

Why Is Coordination Important?

CoordinationCoordination




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Impact of tourism

A tourism A tourism assessment assessment

• Employment

• Foreign exchange, receipts and taxes

• Linkages and leakages

http://www1.oecd.org/publications/e-book/7801011E.PDF




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• Current size of the sector and present benefits

• What else is missing?

• Match your marketing to existing and potential

demand

“Road-map” to the Sector





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• Tourist arrivals• Country of origin (origin markets)• Average length of stay• Tourist Expenditures• Booking channels

Get the Facts…





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• Ecotourism

• Cultural tourism

• Adventure Tourism

• Events specific tourists (e.g. researchers)

• Other specialty – niche markets

• Seasonality of arrivals

… & Understand the Motives





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• Natural beauty

• Wildlife

• Cultural heritage

• Man made attractions

Assess Your Comparative Advantage





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• Availability, quality and occupancy rates of

accommodations

• Geographic distribution of hotel rooms

• Hotel ownership and investment modalities

• Hotel classification and norms, incl. environmental

criteria

Take Stock of Facilities





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• Climate

• Health

• Security

• Quality of infrastructure (incl. international air transport)

• Human resources

• Effective promotion

Constraints to Tourism Growth





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Source: OMT/WTO database.

South Asia1%

Middle East2%Africa

2%EAP15%

Americas27%

Europe53%

0 100 200 300 400 500 600

International Fare Receipts

Iron and steel

Telecommunications equipment

Textiles and clothing

Fuels

Food

Automotive products

Tourism (including fare receipts)

Overall Trends in

International Tourism

Worldwide Export Earnings (US$ billions)

Tourism receipts market share (%)

Is it worth the Is it worth the effort?effort?

Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study...

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