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

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

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

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

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!

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!

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

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 …

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.