Responsibility & sustainability in tourism: concerns in the context of liberalization policies

1. 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

2. Tourism statistics & trends • Fastest growing industry • Increasingly dominant role in 49 less developed countries • 694 mn tourist traffic1 • Which rose by 23.8% (3.4 mn) in 2004 • Earnings generated – US$ 4810 mn • India: contributed 4.9% of GDP • Supports 46.87 mn jobs – directly & indirectly2

3. 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

4. The actual scenario is that: Leakages supercede incomes / revenues3 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: Economy

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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 sector4 • Significant progress made • Focus: branding, connectivity & joint marketing, infrastructure • Negligence on: sustainability, conservation & community participation

12. 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

13. Thank You.