1. SADC negotiations on trade in tourism services Workshop for 22 nd TNF Services Johannesburg 5 August 2014

2. Outline State of play in negotiations Classification issues Summary of requests and offers Issues related to Tourism Protocol Issues arising from sector study How will the negotiations make a difference to regional trade Decisions required Key questions for breakout groups

3. State of negotiations Some negotiating experience SADC Protocol on Tourism Development MS have negotiate Tourism as one of six priority sectors 7 requests and 9/10 offers so far All except 2 MS have GATS commitment in Tourism Negotiated at COMESA and EAC (very likely under EPA)

4. Classification 3 main categories (W/120) Hotel and restaurant services Hotel and lodging services Food serving services Beverage services for consumption on premises Travel Agencies and Tour Operators Tour Guide services Challenges: limited in scope e.g. entertainment services, computer reservation, car rentals are place elsewhere in W/120 Tourism and travel related Vs Recreation, Cultural and Sporting services Complicates the negotiations and limit measuring trade in tourism services

5. Classification: CPC Prov. 2 Tourism and travel related services CPC 631: Accommodation services for visitors, incl. Room or unit accommodation services for visitors, in time-share properties (63113); CPC 633:Meal serving services, Event catering services (63391) and Contract food services for transportation operators (63392), and CPC 855:Travel arrangement, tour operator and related services, incl. Reservation services for transportation (8551) and Tourism promotion and visitor information services (8556) Recreational, Cultural and Sporting Services CPC 844: News agency services; CPC 845: Library and archive services; CPC 962: Performing arts and other live entertainment event presentation and promotion services; CPC 963: Services of performing and other artists; CPC 964: Museum and preservation services; CPC 965: Sports and recreational sports services; CPC 966: Services of athletes and related support services; and CPC 969: Other amusement and recreationalservices.

6. Requests and Offers: Summary Requests 7 MS made requests and all MS received at least a request Most of the requests are not in tourism services (e.g. Vehicle insurance, transport standards, visa and permits) specific requests in mode 4 tourism personnel Offers 9 offers so far all covering hotel and restaurant services and travel agencies and tour operators and 7/9 cover tour guide services and 2 incl. other services Mode 3 limitation: Foreign Vs total number of employees ENT and prioritization of type of investment % of foreign capital Training plans

8. Offers in Tourism and Travel related Services

9. Issues related to Tourism Development Protocol Provides for: harmonisation of policies and regulatory frameworks in area such as immigration, training and education, Tourism services standards (incl. transport, communication and tourism facilities) Uses endeavour language & much dependent on implementation of other sectoral protocols Does not provide for: transparent regulation, prevention of anti-competitive practices and mutual recognition Considered in the Proposed GATS Annex on Tourism Services

10. Issues from Sector Study Liberal regimes in most MS confirming the liberal GATS commitments A few MS regimes are inconsistent with GATS in Tourism Barriers identified are cross-cutting bureaucracy and delays in visa issuance; delays and red-tape in work and residency permits; restrictions on capital movement and real estate acquisition; Residency & nationality of management team/board of directors; Discretionary powers in licensing and local empowerment policies Thus room for improvement in GATS commitment

11. How will the negotiations make a difference to regional trade? PTD : involvement of the local community and prioritise investment in the sustainable development natural and cultural resources transcending territorial boundaries. Trade in Services Protocol: liberalisation commitments attracting intra-regional investments and legal certainties to the existing liberal tourism and investment regimes of MS Easier said than done

12. Decisions Required: Group work How to approach negotiations and achieve meaningful commitments in tourism services ? Which classification CPC Prov. 1 or CPC Prov. 2? How will MS capture tourism trade barrier in MS cross-cutting measures? Does the Proposed Annex on tourism services make sense for SADC trade liberalization in tourism services? To what extend does the offers so far address the MS requests?