Services Trade Liberalisation and Tourism Development

This study analyses the role that services trade liberalisation could play in fostering tourism growth in developing countries. The economic and social importance of tourism means that the industry is high on the list of development priorities in many developing countries and LDCs. In order to have a successful tourism export industry, effective linkages need to be established with many different sectors, most of which are other services. Trade and investment liberalisation at the national, regional and multilateral levels can be a means to complement national efforts to attain these goals. Sustainable tourism development, though, requires strong public sector management and support. Due consideration needs to be given to develop effective regulation, including competition policy and institutions, to avoid exceeding the carrying capacity of assets, and to strengthen national capacity in order to minimise financial leakages.