Despite its wide-reaching socio-economic impact, tourism still receives limited attention as a tool for development.
At the third international conference on financing for development held in Addis Ababa, Ehiopia, the United Nations World Tourism Organisation (UNWTO) called for greater support for tourism in international financing for development flows in order to maximise its contribution to development across the globe.
Tourism’s underrepresentation in international financing for development flows is a big hurdle to fully deploying its potential.
Despite being a high impact economic activity, a major job generator, and a key export sector accounting for 6 per cent of total world trade, tourism receives only 0.78 per cent of total Aid for Trade (AfT) disbursements and a mere 0.097 per cent of total Official Development Assistance (ODA).
UNWTO Secretary General, Taleb Rifai, recalled that tourism has been identified by half of the world´s Least Developed Countries (LDCs) as a priority instrument for poverty reduction.
His words: “For an increasing number of developing countries tourism means jobs, poverty eradication, community development, and the protection of natural and cultural heritage.
“Yet, in order to maximise tourism’s contribution to the development objectives, it is critical to address the disparity between the sector´s capacity to foster development and the low priority it has been given so far in terms of financial support in the development cooperation agenda.”
Tourism’s cross-cutting nature and multiple links to other economic sectors makes it an effective multiplier in global development strategies, as it often provides one of the few competitive options for developing countries to take part in the global economy.
Tourism is crucial for LDCs. In 2013, the 49 LDCs received 24 million international overnight visitors and earned $18 billion from international tourism.
This represented 8 per cent of total exports of goods and services of LDCs; 12 per cent for non-oil exporters among them. Tourism was one of the main contributors to the elevation of Botswana, the Maldives, and Cabo Verde from LDC status.
Rifai stressed that “2015 is the year for action. As we move forward to adopt a new sustainable development agenda, we have a unique opportunity to raise the level of assistance in tourism to further harness its vast potential for stimulating green growth and inclusive development worldwide, particularly for the countries most in need.”
Over recent years, tourism’s ability and potential to drive sustainable development has been increasingly recognised.
It is identified by half of the world´s LDCs as a priority instrument for poverty reduction.
It is one of the six initial programmes of the 10-Year Framework of Programmes on Sustainable Consumption and Production Patterns (10YFP) designed to accelerate sustainable consumption and production worldwide.
Yet the levels of financing for development in tourism are comparatively low.