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 traffic 1  Which rose by 23.8% (3.4 mn) in 2004  Earnings generated – US$ 4810 mn  India: contributed 4.9% of GDP  Supports mn jobs – directly & indirectly 2

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 / revenues 3  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 sector 4 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.