World Tourism Organization

@UNWTO
http://www.e-unwto.org/doi/book/10.18111/9789284417247 - Wednesday, September 23, 2015 3:22:45 AM - IP Address:62.15.160.36

Driving Trade,
Fostering Development
and Connecting People
Tourism
World Tourism Organization
 Why tourism matters
Tourism is one of the key socio-economic sectors of our times.
From an activity reserved for the privileged few only some
decades ago, tourism today moves more than one billion
people across international borders each year. Globalization of
goods and services, more leisure time, the technological and
transport revolutions and rising middle classes, have positioned
tourism as one of the world’s leading growth engines.
Tourism accounts for almost 10% of global GDP,
generates more than US$ 1.5 trillion in trade income or
30% of the world’s services exports and provides one in
http://www.e-unwto.org/doi/book/10.18111/9789284417247 - Wednesday, September 23, 2015 3:22:45 AM - IP Address:62.15.160.36
eleven jobs worldwide.
As a major source of foreign exchange and investment, tourism
creates much needed employment and business
opportunities. Tourism’s unparalleled cross-cutting nature and
multiple links to the other economic sectors, further positions it
as an efficient multiplier in global development strategies.
More and more developing countries embrace tourism
to jumpstart their socio-economic development and for
over half of the world’s poorest countries tourism is a
priority instrument for poverty reduction. But in spite of its
proven potential, the value of tourism still needs to be better
harnessed when it comes to the development agenda.
This becomes evident when looking at the contrast between
tourism’s undisputed contribution to development – in
particular in Least Developed Countries (LDCs), Small Island
Developing States (SIDS) and Middle Income Countries (MICs)
– and its modest share in the flows of Official Development
Assistance (ODA) and Aid for Trade (AfT).
In spite of tourism’s evident role in socioeconomic
development, many challenges remain, none the least ensuring
that the world´s poorest countries, benefit from the income and
social opportunities provided by the sector.
10%
GDP 1.5 trillion
in exports
It is thus critical to place tourism higher in the development
agenda and ensure that the level of assistance matches
the potential of the sector in contributing to development
objectives.
The development dimension
Tourism is trade. Tourism equals a major share of trade
in services, representing the main source of foreign exchange
for many developing countries, in particular LDCs. In 2014,
LDCs earned 16.4 US$ billion in exports from international
tourism representing 7% of their total exports. Tourism
provides thus often one of the few competitive options for
these countries to take part in the global economy.
Tourism’s benefits spill over into the whole of the
economy and society. Every tourist means more jobs and
business opportunities in tourism but also in related sectors,
higher income for families, increased investment and more
opportunities for grass roots development. Above average
tourism growth rates have become recurrent news in the
global south, and tourism is the thread that connects external
image, attracts foreign direct investment, and boosts exports.
Tourism builds resilience. Historically, tourism bounces
back faster and stronger than most economic sectors and
thus contributes to build resilience. This is of particular
importance for the more vulnerable economies when exposed
to external shocks.
Tourism means community development: Local tourism
jobs and business opportunities help reduce rural-urban
migration, while opening doors to the young and fostering
gender equality through job opportunities. Against the
backdrop of the sheer size and reach of the sector, small
changes towards sustainable development can have
significant global impacts, while reaching the very foundations
of society, tourism being deeply rooted in local communities
and a powerful instrument to empower them.
30%
of services
exports
Commodity Aid / General Prog. Ass.
Tourism is built on partnerships: The bulk of the sector is
made up of Small and Medium Enterprises (SMEs) and the
(ensure sustainable consumption and production patterns)
and in Goal 14 (conserve and sustainably use the oceans,
private sector has a key role in achieving development targets. seas and marine resources for sustainable development).
Tourism offers immense opportunities to promote partnerships
for development based on public-private cooperation models
but also cross-cutting public coordination and action. Closing the aid gap
Speeding up political support Tourism is a high-impact economic activity in trade in
services, a major job generator and a priority area for a
large number of developing countries. Yet, financing
Tourism’s role is steadily becoming recognized at key political
remains an important hurdle for tourism to really deploy
fora and among the world´s decision makers with the sector
its development potential. The sector is still clearly
gaining momentum in both the trade and the development
underrepresented in aid flows, accounting in 2013 only
agenda. Highlights include the G20 backing of tourism to face
0.09% of Overall Development Assistance (ODA) and
up to global economic challenges; the inclusion of tourism in
0.78% of Aid for Trade in tourism4.
the RIO+20 Outcome Document ‘The Future We Want’,
underscoring tourism’s catalytic contribution to the three
There is thus a particular opportunity to increase the support to
dimensions of sustainable development; or highlighting
the sector in terms of ODA and AfT, which will not only empower
tourism as a change vector along the road to the Green
development policies but also help mobilize private sector
Economy by the UN Environment Programme (UNEP),
investment in tourism and related infrastructure and services.
benefitting particularly developing countries. The key role of
Tourism is an important and growing services sector with
tourism in the Aid for Trade agenda is also increasingly
significant spill-overs into the rest of the economy. The sector is
recognized by the Organization for Economic Co-operation
employment intensive and its significant potential to contribute to
and Development (OECD) and the World Trade Organisation
growth and poverty reduction is widely recognized.
(WTO)1, the European Union2, and major donors, namely
through the Enhanced Integrated Framework3 , a WTO
More support through the allocation of ODA and AfT
multi-donor programme for LDCs.
could also have significant paybacks for beneficiary
countries. This need for scaling up aid flows in tourism
These milestones confirm that tourism is coming of age. Yet,
becomes even more pertinent considering that in the
for tourism to fully deploy its potential it must be given
coming years the emerging economies will overtake
proper recognition and support in trade, investment and
advanced economies as preferred destinations for more
business development policies. This will help maximize
than half of international tourists travelling the world. Not
tourism’s contribution to the post-2015 development agenda
seizing this potential would mean to miss out in terms of
and the Sustainable Development Goals (SDGs). Tourism
global opportunities for sustainable development.
is included in the SGDs as a target in Goal 8 (promote
sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all), in Goal 12
1. Joint OECD-WTO-UNWTO study “Aid for Trade and Value Chains in Tourism” (2013) http://www.oecd.org/dac/aft/AidforTrade_SectorStudy_Tourism.pdf
2. http://icr.unwto.org/content/about-sustainable-tourism-development
3. http://enhancedif.org/
4. Source: UNWTO based on OECD.STAT - Creditor Reporting System (CRS) – reference year: 2013 (accessed March 2015)
Total ODA by sector in 2013 (US$ million) Breakdown Total ODA Production Sectors
Social Infrastructure & Services
21%
Economic Infrastructure & Services 71% Agriculture, Fishing, Forestry
Production Sectors
Multi-Sector / Cross Cutting
37%
8%
Industry, Mining, Construction
18% Trade Policies & Regulations
Tourism
Action Relating to Debt 10% 11%
Humanitarian Aid 8% 6%
8%
Unallocated / Unspecified
2% 1% Tourism
Source: UNWTO based on OECD data World Tourism Organization (UNWTO) 2015
Why tourism matters
Tourism is one of the key socio-economic sectors of our times.
From an activity reserved for the privileged few only some
decades ago, tourism today moves more than one billion
people across international borders each year. Globalization of
goods and services, more leisure time, the technological and
transport revolutions and rising middle classes, have positioned
tourism as one of the world’s leading growth engines.
Tourism accounts for almost 10% of global GDP,
generates more than US$ 1.5 trillion in trade income or
30% of the world’s services exports and provides one in
eleven jobs worldwide.
As a major source of foreign exchange and investment, tourism
creates much needed employment and business
opportunities. Tourism’s unparalleled cross-cutting nature and
multiple links to the other economic sectors, further positions it
as an efficient multiplier in global development strategies.
More and more developing countries embrace tourism
to jumpstart their socio-economic development and for
over half of the world’s poorest countries tourism is a
priority instrument for poverty reduction. But in spite of its
proven potential, the value of tourism still needs to be better
harnessed when it comes to the development agenda.
This becomes evident when looking at the contrast between
tourism’s undisputed contribution to development – in
particular in Least Developed Countries (LDCs), Small Island
Developing States (SIDS) and Middle Income Countries (MICs)
– and its modest share in the flows of Official Development
Assistance (ODA) and Aid for Trade (AfT).
In spite of tourism’s evident role in socioeconomic
development, many challenges remain, none the least ensuring
that the world´s poorest countries, benefit from the income and
social opportunities provided by the sector.
10%
GDP 1.5 trillion
in exports
It is thus critical to place tourism higher in the development
agenda and ensure that the level of assistance matches
Tourism is built on partnerships: The bulk of the sector is
made up of Small and Medium Enterprises (SMEs) and the
(ensure sustainable consumption and production patterns)
and in Goal 14 (conserve and sustainably use the oceans,
the potential of the sector in contributing to development private sector has a key role in achieving development targets. seas and marine resources for sustainable development).
objectives. Tourism offers immense opportunities to promote partnerships
for development based on public-private cooperation models
The development dimension but also cross-cutting public coordination and action. Closing the aid gap
Tourism is trade. Tourism equals a major share of trade Speeding up political support Tourism is a high-impact economic activity in trade in
services, a major job generator and a priority area for a
in services, representing the main source of foreign exchange
for many developing countries, in particular LDCs. In 2014, large number of developing countries. Yet, financing
Tourism’s role is steadily becoming recognized at key political
LDCs earned 16.4 US$ billion in exports from international remains an important hurdle for tourism to really deploy
fora and among the world´s decision makers with the sector
tourism representing 7% of their total exports. Tourism its development potential. The sector is still clearly
gaining momentum in both the trade and the development
provides thus often one of the few competitive options for underrepresented in aid flows, accounting in 2013 only
http://www.e-unwto.org/doi/book/10.18111/9789284417247 - Wednesday, September 23, 2015 3:22:45 AM - IP Address:62.15.160.36
agenda. Highlights include the G20 backing of tourism to face
these countries to take part in the global economy. 0.09% of Overall Development Assistance (ODA) and
up to global economic challenges; the inclusion of tourism in
0.78% of Aid for Trade in tourism4.
the RIO+20 Outcome Document ‘The Future We Want’,
Tourism’s benefits spill over into the whole of the underscoring tourism’s catalytic contribution to the three
economy and society. Every tourist means more jobs and There is thus a particular opportunity to increase the support to
dimensions of sustainable development; or highlighting
business opportunities in tourism but also in related sectors, the sector in terms of ODA and AfT, which will not only empower
tourism as a change vector along the road to the Green
higher income for families, increased investment and more development policies but also help mobilize private sector
Economy by the UN Environment Programme (UNEP),
opportunities for grass roots development. Above average investment in tourism and related infrastructure and services.
benefitting particularly developing countries. The key role of
tourism growth rates have become recurrent news in the Tourism is an important and growing services sector with
tourism in the Aid for Trade agenda is also increasingly
global south, and tourism is the thread that connects external significant spill-overs into the rest of the economy. The sector is
recognized by the Organization for Economic Co-operation
image, attracts foreign direct investment, and boosts exports. employment intensive and its significant potential to contribute to
and Development (OECD) and the World Trade Organisation
growth and poverty reduction is widely recognized.
(WTO)1, the European Union2, and major donors, namely
Tourism builds resilience. Historically, tourism bounces through the Enhanced Integrated Framework3 , a WTO
back faster and stronger than most economic sectors and More support through the allocation of ODA and AfT
multi-donor programme for LDCs.
thus contributes to build resilience. This is of particular could also have significant paybacks for beneficiary
importance for the more vulnerable economies when exposed countries. This need for scaling up aid flows in tourism
These milestones confirm that tourism is coming of age. Yet,
to external shocks. becomes even more pertinent considering that in the
for tourism to fully deploy its potential it must be given
coming years the emerging economies will overtake
proper recognition and support in trade, investment and
Tourism means community development: Local tourism advanced economies as preferred destinations for more
business development policies. This will help maximize
jobs and business opportunities help reduce rural-urban than half of international tourists travelling the world. Not
tourism’s contribution to the post-2015 development agenda
migration, while opening doors to the young and fostering seizing this potential would mean to miss out in terms of
and the Sustainable Development Goals (SDGs). Tourism
gender equality through job opportunities. Against the global opportunities for sustainable development.
is included in the SGDs as a target in Goal 8 (promote
backdrop of the sheer size and reach of the sector, small sustained, inclusive and sustainable economic growth, full and
changes towards sustainable development can have productive employment and decent work for all), in Goal 12
significant global impacts, while reaching the very foundations
of society, tourism being deeply rooted in local communities 1. Joint OECD-WTO-UNWTO study “Aid for Trade and Value Chains in Tourism” (2013) http://www.oecd.org/dac/aft/AidforTrade_SectorStudy_Tourism.pdf
and a powerful instrument to empower them. 2. http://icr.unwto.org/content/about-sustainable-tourism-development
3. http://enhancedif.org/
4. Source: UNWTO based on OECD.STAT - Creditor Reporting System (CRS) – reference year: 2013 (accessed March 2015)
Total ODA by sector in 2013 (US$ million) Breakdown Total ODA Production Sectors
Social Infrastructure & Services
21%
30% Economic Infrastructure & Services 71% Agriculture, Fishing, Forestry
of services
Production Sectors
Multi-Sector / Cross Cutting
37%
8%
Industry, Mining, Construction
exports 18% Trade Policies & Regulations
Commodity Aid / General Prog. Ass.
Tourism
Action Relating to Debt 10% 11%
Humanitarian Aid 8% 6%
8%
Unallocated / Unspecified
2% 1% Tourism
Source: UNWTO based on OECD data World Tourism Organization (UNWTO) 2015
 http://www.e-unwto.org/doi/book/10.18111/9789284417247 - Wednesday, September 23, 2015 3:22:45 AM - IP Address:62.15.160.36

World Tourism Organization

@UNWTO
Driving Trade,
Fostering Development
and Connecting People
Tourism
World Tourism Organization