A Forum on International Trade and Tourism on 15 June 2004 will examine that sector from the trade and development perspectives of developing countries. It will focus on trade in tourism services as a contributor to development gains, including the opportunities and way ahead for tourism in world trade.

While tourism is a key export for most developing countries, it is particularly important for Least Developed Countries (LDCs) and Small Island Developing States (SIDS). For more than half of SIDS, tourism receipts represent between one to three quarters of their total export revenues. For the 49 LDCs taken as a group, tourism is the first source of foreign exchange earnings and seven of them critically depend on it for revenues.

Yet, LDCs accounted for less than 1% of international tourist arrivals and less than 0.5% of international tourism receipts in 2001. The value-added of trade in tourism (measured by spent income per tourist arrival) has declined sharply in some developing regions, e.g. in the Middle East, and in several African and Asian countries.

The Forum will examine lessons learned from existing experiences on the liberalization of tourism to support export competitiveness. That includes implementation of policies to ensure spill over effects from tourism on local communities and poverty reduction. It will consider, among other things, models and schemes to develop market intelligence, areas for increased South-South tourism trade flows and possible cooperation in infrastructure-related projects.

Why tourism is important for developing countries

Tourism is probably the only services sector that provides concrete trading opportunities for all nations, regardless of their level of development. In many developing countries, tourism makes a greater contribution to foreign earnings than such other major exports as textile and clothing or agriculture, without encountering the same magnitude of trade barriers.

Trade in tourism services and tourism activities in general have the potential to become an engine for growth and economic development. Tourism can also be a driving force in efforts to combat poverty, which is one of the central objectives of the UN Millennium Development Goals.

But it is also a highly vulnerable economic activity affected by several risk factors, including global events related to international politics, health-related problems and climate changes. Creating a coherent developmental framework for trade in tourism services is a crucial issue, particularly for countries with high economic dependence on tourism. Promoting the industry´s sustainability and preventing environmental degrading is also important.

A major challenge for developing countries is the growing control of a few global tourism operators and travel distribution networks over many aspects of world tourism, including organized travel, international booking, marketing and sales of tourism and related activities. This concentration of power reduces the benefits that developing countries can reap from the liberalization and expansion in world tourism.

Since the operators are based in developed countries, their anti-competitive behaviour is difficult to prevent in the absence of a legal framework governing competition and multilateral disciplines on cross-border restrictive business practices.

UNCTAD&apo;s E-Tourism Initiative

As part of the UNCTAD XI ICT for Development Partnership, to be launched on 17 June, the E-Tourism Initiative will strengthen developing country capacities to promote their tourism product and match it to worldwide demand. The initiative's chief tool is an electronic platform that will offer value-added online services such as reservation systems.

The Initiative, which draws on public/private sector collaboration, is designed to give developing country destinations the technical means for marketing and selling their own tourism services online. Tailor-made, easily replicable platforms will be created for this purpose, complemented by training, online value-added services, and a business model aimed at ensuring long-term financial viability.

Its expected outcome is increased visibility for the country of destination and a tourism industry that is highly responsive to the needs of today&apo;s travellers for quick access to information, customized products and secure, online payment facilities.