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Tourism – A key resource for sustainable economic and social development

Tourism Enriches was at the centre of the UNWTO Think Tank hosted by Portuguese Secretary of State for Tourism, Bernardo Trindade, on the occasion of the United Nations/ World Tourism Day. Officials, experts and…

Tourism Enriches was at the centre of the UNWTO Think Tank hosted by Portuguese Secretary of State for Tourism, Bernardo Trindade, on the occasion of the United Nations/ World Tourism Day. Officials, experts and entrepreneurs from Europe, the Americas and the Middle East gathered in Lisbon to discuss the opportunities and challenges for tourism as a leading socio economic driver.



The Think Tank key conclusions:


  • Tourism represents 40% of all exports of services; revenues have grown far stronger than international trade.



  • Tourism has spin-off effects ranging from construction over to agriculture or telecommunications, creating quality employment for developing countries.



  • Tourism has to be included in the policy and development agenda of governments, donors and financing institutions.


Fostering awareness



Investing in tourism infrastructure, information communications technology (ICT) and education can create long term employment which benefits local communities.



Governments and development agencies need to become aware of this added value chain provided by tourism. Only then tourism will be included as a strategic element in policies targeting job creation, sustainability and poverty alleviation.



On a socio-cultural level, tourism can promote a culture of peace and understanding thanks to direct contacts between visitors and host communities How can we feel enmity towards someone we know personally; someone whom we have received or who has received us, asks UNWTO Secretary General Francesco Frangialli.



The participants endorsed the view that the linkage of tourism and ICT as catalytic sectors could provide significant leverage in managing growth and bridging the digital divide.



UNWTO has recently initiated a long term partnership with Microsoft Corporation to expand ICT in the tourism sector, providing ICT systems and tools for emerging tourism economies to improve their export competitiveness, product quality and support skills. Its primary focus will be on Africa.



Tourism outgrows the rest



The consolidation of tourism over the past decades constitutes one of the most positive socio-economic developments of our time, says Francesco Frangialli. International tourist arrivals grew from 25 million in 1950 to 808 million in 2005. This expansion rate by 6,5% continues unabated and there is no evidence of saturation of demand despite wars, terror, tsunamis and other crises he adds.



The revenues generated by these arrivals have risen at an average rate of 11.2% per year (adjusted for inflation) over the same span of time, outgrowing the world economy as a whole. In 2005 international tourism receipts reached 682 billion dollars – more than 800 billion when airline tickets are included. This trade volume equals or exceeds that of oil exports, food products, or even cars.



Therefore tourism represents 40% of all exports of services, making it one of the largest categories of international trade. There is more potential which could benefit poor countries and UNWTO is working with the World Trade Organization to support broad scale liberalization of the sector. Non trade and non economic obstacles are the real challenge, Frangialli stresses.



Defining standards



Some 75 countries are using the Tourism Satellite Account (TSA), which reflects the economic contribution of tourism, ranging from GDP to job creation.



The TSA is a resource for public, tourism and development authorities, as well as private investors. It is a tool to gain real credibility, Francesco Frangialli explains. Tourism`s image will change and, with the new perception of it, those who champion its cause will have a better chance of being heard and of having their legitimate needs satisfied.



Currently, the International Monetary Fund is preparing to take the TSA into account in balance of payments data; while discussions are underway with the International Labour Organization to factor it into job creation strategies.



For a new perception



The perception of tourism has to evolve towards the corporate identity of a robust and sustainable sector. Tourism is in fact one of the fastest growing sectors in the world and can provide longstanding and high quality employment.



Too little research is yet done on the linkages which demonstrate the economic multiplier effect of tourism. Decision makers at all levels have to understand the economic and socio-cultural benefits of tourism. This will help establishing public-private partnerships to finance and promote sustainable tourism initiatives in developing countries.



The broad acceptance of the UNWTO-TSA will reflect the economic weight of tourism and support its recognition as a sector alongside other economic sectors. This will help in putting tourism explicitly on the policy and development agenda of governments and financing institutions.



In summing up the results of the Think Tank, Secretary of State Bernardo Trindade concluded that UNWTO must continue its drive to ensure that tourism is a strategic priority for economic growth and sociocultural development and it has a unique role in this context as a specialized UN agency working on an inter-governmental level and with a record of successful public-private partnerships.



Participants included: Francesco Frangialli (UNWTO Secretary-General); Bernardo Trindade (Secretary of State for Tourism for Portugal); Zdenko Micic (State Secretary for Tourism, Ministry of Sea, Tourism, Transport and Development, Croatia); Marcio Favilla (Executive Secretary, Ministry of Tourism, Brazil); Peter Keller (Head of Tourism Service, Secretariat of State for Economic Affairs, Switzerland); German Porras (Former Tourism Secretary General of Spain); David McMillan [CEO, International Hotel and Restaurant Association (IH&RA)]; Roger Dow (CEO, Travel Industry Association of America, USA); Andres Contreras (Subdirector General of Cooperation and tourism Coordination, Ministry of Industry, Tourism and Commerce, Spain); Sean O`Hara (Executive Director, BBC World); Jan Poul de Boer (Qatar Tourism Authority); Martin Brackenbury (President, International Federation of Tour Operators (IFTO); Paul Hengeveld (Director UN Programs, Microsoft Corporation); Carlos Vogeler (Chairm an of the UNWTO Affiliate Members); John Turato [Chairman, OpenTravel Alliance (OTA)]. The Think Tank was moderated by Geoffrey Lipman (UNWTO, Assistant Secretary-General).

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