1. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 1 Preparing for a Successful GATS Negotiations Round UNCTAD Commercial Diplomacy Programme May 2002

2. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 2 Positive facts about tourism 1992-1998 Why Tourism? The African region showed a growth rate of 7.8 % in arrivals, nearly twice the world average. High concentration of international tourism arrivals in Africa Tourism revenues: –one of the five leading sources of export revenue for 69 developing countries –main source of foreign currency in 28 countries

3. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 3 The “Big Ticket” Item Why Tourism? Important potential for wealth Multiple positive spillover effects Transform vicious circle of poverty into virtuous circle of growth Opportunities for SME, women, youth Diversification of income generation

4. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 4 Internal Leakages: import component, royalty payments. External Leakages: control of inflows and outflows by vertically integrated operators. Invisible leakages: tax evasion, unsustainable use of destination resources. But Also the “Big Problem” Item Leakages

5. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 5 Coherent tourism policies Effective mechanisms against anticompetitive practices. GATS negotiations to strengthen international competitiveness Minimizing External Leakages? Possible Remedies

6. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 6 Yes, if tourism revenues are: Allocated evenly and equitably; Increasing over time; and Allowing for the sustainable use of all destination resources required for tourism. Sustainability prerequisites Is Tourism in Developing Countries Sustainable?

7. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 7 Arrival & Income Trends

8. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 8 The Challenge: Establish coherent national tourism policies that would strengthen competitiveness and sustainability of international tourism. Requires a national assessment study of tourism. This involves: Consultations with stakeholders Intra-Governmental coordination

9. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 9 Local exporters of tourism services Representative of foreign tourism firms with local presence Regulatory bodies (incl. licensing boards) Tourism trade associations Local population/consumers groups Operators in other sectors of the economy Who Should Be Involved? Consultations

10. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 10 Understanding how to maximize benefits from tourism Getting updated information about trade in tourism services (TSA) Adjusting statistical surveys to reflect proportion of SME Why Is This Difficult? Consultations

11. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 11 Learn who is already exporting tourism services, and to whom Learn what will improve competitiveness of local suppliers Identify both export and import interests (both requests and offers) Asses the impact of additional GATS-liberalization on national export and development objectives Objectives: Consultations

12. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 12 Wide range of agencies, regulatory bodies and ministries are involved, both directly and indirectly. Tourism often regulated at municipal level Ensure understanding of scope and content of the GATS among interest groups Intra-governmental Coordination

13. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 13 To base government position on a complete assessment of key national priorities To create an information base on measures affecting trade in tourism (and other) services To analyze the effect of specific measures on the achievement of national policy objectives To avoid duplication in consultations of stakeholders Why Is Coordination Important? Coordination

14. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 14 Impact of tourism A tourism assessment Employment Foreign exchange, receipts and taxes Linkages and leakages http://www1.oecd.org/publications/e-book/7801011E.PDF

15. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 15 Current size of the sector and present benefits What else is missing? Match your marketing to existing and potential demand “Road-map” to the Sector A tourism assessment

16. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 16 Tourist arrivals Country of origin (origin markets) Average length of stay Tourist Expenditures Booking channels Get the Facts… A tourism assessment

17. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 17 Ecotourism Cultural tourism Adventure Tourism Events specific tourists (e.g. researchers) Other specialty – niche markets Seasonality of arrivals … & Understand the Motives A tourism assessment

18. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 18 Natural beauty Wildlife Cultural heritage Man made attractions Assess Your Comparative Advantage A tourism assessment

19. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 19 Availability, quality and occupancy rates of accommodations Geographic distribution of hotel rooms Hotel ownership and investment modalities Hotel classification and norms, incl. environmental criteria Take Stock of Facilities A tourism assessment

20. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 20 Climate Health Security Quality of infrastructure (incl. international air transport) Human resources Effective promotion Constraints to Tourism Growth A tourism assessment

21. Preparing for a Successful Negotiations Round – Issues to Consider in a National Assessment Study of Tourism. UNCTAD Wednesday, 23 September 2015© National Workshop on WTO Negotiations on Services 21 Overall Trends in International Tourism Worldwide Export Earnings (US$ billions) Tourism receipts market share (%) Is it worth the effort?