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Liberalisation of Trade in Tourism Services in the Southern African Development Community

Liberalisation of Trade in Tourism Services in the Southern African Development Community. Natasha Ward, Partner, ACP International Trade Advisors SADC Tourism Forum Johannesburg, November 18, 2013. Structure of Presentation. Key Points Definition of the sector

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Liberalisation of Trade in Tourism Services in the Southern African Development Community

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  1. Liberalisation of Trade in Tourism Services in the Southern African Development Community Natasha Ward, Partner, ACP International Trade Advisors SADC Tourism Forum Johannesburg, November 18, 2013

  2. Structure of Presentation • Key Points • Definition of the sector • Review of Legal Restrictions

  3. Key Points • Commitments in tourism services could provide a platform for increased regional and international trade in the sector • Commitments in complementary sectors may support the development of the national tourism industries • Where there are inconsistencies between the applied regime for tourism and GATS commitments, SADC member states could use the opportunity to eliminate such inconsistencies • SADC member states with no commitments could use the opportunity of the SADC TIS negotiations to make commitments

  4. Key Points • Private sector input is important for gaining commercially meaningful access • SADC region stands to gain substantially from Trade in Services commitments IF it aggressively moves forward on implementing the Protocol on Tourism Development • Countries need to audit results of empowerment policies in tourism sector • More protection to domestic players does not necessarily equate to stronger or faster development of tourism sub-sectors

  5. Definition of the Sector • WTO W/120 Classification • Hotels and Restaurants • Travel Agency and Tour operator services • Tour guides …….. But SADC member states have a far wider definition of the sector. It includes: • Attractions • Car rentals • Tourism training

  6. Typology of restrictions identified • Restrictions controlling market entry • Restrictions which give domestic competitors an advantage over foreign entrants

  7. Frequently encountered restrictions Establishment of a business • Acquisition of real estate • Equity restrictions • Minimum capital requirements • Economic needs tests • Limitations on the size of assets • Reservation of activities for nationals • Discriminatory taxes and duties • Repatriation of profits and dividends

  8. Frequently encountered restrictions Temporary Movement and Stay of Natural Persons • Availability of licences for certain categories of activities to nationals only • Quotas on the number of foreign staff that may be employed • Economic needs tests • Differences in fees and criteria for licenses • Nationality and residency requirements

  9. Applied regimes vs. GATS commitments

  10. Caveats • Restrictions identified on best available information at time of study • While countries have made offers under the WTO’s Doha Development Round, these are conditional

  11. Applied Regime - Angola

  12. GATS Commitments - Angola

  13. Applied Regime - Botswana

  14. GATS Commitments - Botswana

  15. Applied Regime – D.R. Congo

  16. GATS Commitments – D.R. Congo

  17. Applied Regime - Lesotho

  18. GATS Commitments - Lesotho

  19. Applied Regime - Malawi

  20. GATS Commitments - Malawi

  21. Applied Regime - Mauritius

  22. GATS Commitments - Mauritius

  23. GATS Commitments - Mauritius

  24. GATS Commitments - Mauritius

  25. GATS Commitments - Mauritius

  26. Applied Regime - Mozambique

  27. GATS Commitments - Mozambique • No commitments

  28. Applied Regime - Namibia

  29. GATS Commitments - Namibia

  30. Applied Regime - Seychelles

  31. GATS Commitments - Seychelles • In process of WTO accession

  32. Applied Regime – South Africa

  33. GATS Commitments – South Africa

  34. Applied Regime - Swaziland

  35. GATS Commitments – Swaziland

  36. Applied Regime - Tanzania

  37. GATS Commitments - Tanzania

  38. Applied Regime - Zambia

  39. GATS Commitments - Zambia

  40. Applied Regime - Zimbabwe

  41. GATS Commitments - Zimbabwe

  42. Thank you for your kind attention Questions? Contact details: E-mail: tradeconsultant@hotmail.com

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