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Responsibility & sustainability
in tourism: concerns in the
context of liberalization
policies
Presentation of Tourism Services
Workshop on WTO related issues
for Government officials of
SAARC countries
New Delhi, May 2006
Tourism statistics & trends
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Fastest growing industry
Increasingly dominant role in 49 less
developed countries
694 mn tourist traffic1
Which rose by 23.8% (3.4 mn) in 2004
Earnings generated – US$ 4810 mn
India: contributed 4.9% of GDP
Supports 46.87 mn jobs – directly &
indirectly2
Thematic areas of conflict: Economy
Tourism is considered as an important
development option for the purpose of:
 Providing income & revenue; foreign
exchange
 Providing employment & augment
livelihoods, through multiplier effect
 Aiding in strengthening economies
 Ushering in development
Thematic areas of conflict: Economy
The actual scenario is that:
 Leakages supercede incomes / revenues3
 Offers low skill / pay jobs to local
communities
 There is a lack of support to SMEs
 Creates dependency on tourism, which
may be unsustainable in long run
 Tourism development is privileged & gets
primary beneficiary status
 Indigenous & local communities, other
marginalized groups become secondary or
tertiary beneficiaries
Thematic areas of conflict: Environment
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Tourism has a track record of negative
impacts
Current focus is on new tourism forms –
“eco”
Tourism operates in an unregulated
climate & inadequate policy regime
Sustainability is sought for tourism
purposes
Whereas, there is denial of access to
natural resources for local communities
Thematic areas of conflict: Institutions
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Constitutional provisions &
contradictions
Dilution of powers of local governing
institutions
Inclusion of scheduled areas (removal
of trade barriers)
Inconsistencies with international
covenants that recognize rights of
indigenous & local communities
Thematic areas of conflict: Society
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Non recognition of impact of tourism on
marginalized & vulnerable sections –
women, children, indigenous
communities
Non participatory mechanisms adopted
in tourism development processes
GATS … on a hot tin roof!
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The GATS & tourism in brief
– Sub agreement within the WTO-OMC
– Aim: develop global trade rules in
services, including tourism
– Tourism: very important (125 / 148
members committed to have liberalized
policies)
– Very few limitations / regulations
included in commitment schedule
GATS … on a hot tin roof!
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The GATS & tourism:
– Liberalization of tourism impacted by
liberalization of other sectors as well:
• Environmental services: water, waste
management, landscaping
• Transportation services
• Construction services
– Widening of inequities & imbalances
– Failure to see linkages of local economy,
livelihoods to natural resources and
social processes
GATS … on a hot tin roof!
– Benefits to communities not considered
– Challenges faced by community
initiatives
– Dilutions of domestic regulations (trade
barriers)
– Conflicts with other MEAs – e.g. CBD
– Acknowledges only national
governments & there are no
consultations with state or local
governments
GATS – key questions
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What is the urgent need to hasten tourism
development?
Role of IFIs: local priorities, aspirations vs.
mega plans
– ADB SASEC Plan
• Tourism a priority sector4
• Significant progress made
• Focus: branding, connectivity & joint
marketing, infrastructure
• Negligence on: sustainability,
conservation & community participation
What needs to be done …
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Holistic development of tourism is
required
GATS impact assessment studies need
to be done
Democratic consultation & scrutiny of
WTO positions & interventions by IFIs
Thank You.