Introduction to Tourism: A Review of the World Tourism Organisation of the United Nations - Assignment Example

CASE STUDY Introduction to Tourism A Review of the World Tourism Organisation of the United Nations Noel Moitra Academia-research.com 04-11 06:46 Introduction Tourism is one industry that will see continuous expansion as the world economy improves and disposable incomes increase alongside. World tourism is regulated, to an extent, by a United Nations agency named The United Nations World Tourism Organisation (UNWTO). This agency, set up in Madrid in 1976, states that tourism is currently the world’s largest industry with an annual revenue in excess of $3 trillion (www.prm.nau.edu), which is likely to reach $5 trillion by 2020 (mlm.ccut.edu.tw). Tourism provides huge numbers of jobs and was the USA’s largest employer (www.bea.gov). In Britain, tourism is its 5th largest industry, 3rd largest export earner and worth £115 billion a year (www.visitbritain.com). This Paper will focus on the UNWTO. Aim The aim of this study is to examine the role and functioning of the United Nations World Tourism Organisation and explain how it regulates or affects tourism. Definition of Tourism Macintosh and Goeldner (1986: online) define tourism as "the sum of the phenomena and relationships arising from the interaction of tourists, business suppliers, host governments and host communities in the process of attracting and hosting these tourists and other visitors." Scope of Study Having introduced the subject, I propose to examine what UNWTO has done in the past few years and identify problems and successes in its various programmes. I will then look at other agencies concerned with tourism on a global scale. I will also consider the views of specialists, both pro and con, glance at the challenges UNWTO has faced and submit recommendations before rounding off this study. The United Nations World Tourism Organisation “UNWTO is a specialised agency of the U‎N and the leading international organisation in the field of tourism. It serves as a ‎global forum for tourism policy issues and a practical source of tourism know-how.‎ UNWTO plays a central and decisive role in promoting the development of responsible, ‎sustainable and universally accessible tourism, paying particular attention to the ‎interests of developing countries,” as stated on their website (www.unwto.org: online).‎ Tourism – an Economic and Social Phenomenon Tourism is one industry that has shown continual growth to overtake earlier indices of economic strength. Modern tourism is a self sustaining cycle. The money it brings in manifests itself as an improvement in the destination, thereby attracting more tourists. Development expands in-house to improve other locations, increasing the number of destinations. Tourism is thus a key driver for socio-economic progress, often representing one of the main income sources for developing countries like Mauritius, the Maldives and Sri Lanka. The contribution of tourism to economic well-being depends on the quality and the revenues of the tourism offer. UNWTO assists nations in sustaining their position in complex national and international markets. UNWTO stresses that developing countries stand to benefit from sustainable tourism and acts to help make this a reality. Another global agency that focusses on tourism is the World Travel & Tourism Council (1990). World Travel & Tourism Council and UNWTO The World Travel & Tourism Council (WTTC) and the UNWTO are, respectively, the leading private and public sector entities within Travel & Tourism (www.wttc.org). WTTC is the business leaders’ forum for 100 of the foremost Travel & Tourism industry companies while UNWTO is a specialised UN agency, with a membership of over 150 countries and some 400 private and public tourism stakeholders. Working together, the two world bodies are aligning efforts to unify a fragmented Travel & Tourism industry, speaking with one voice on the critical issues of climate change and sustainable tourism. Agenda 21: Sustainable Development of Tourism UNWTO insists that sustainable tourism is a must (www.unwto.org). In that context, it attempts to ensure that all Member States follow the guidelines spelt out and signed by them in Agenda 21, (Rio de Janeiro, 1992), to promote global sustainable development at a more fundamental level than just aid programmes, based on common needs and interests, and on collective responsibility. Local governments need to develop their own Local Agenda 21 in order to spread understanding of, and action for, sustainable development (www.un.org). UNWTO Development Assistance UNWTO Development Assistance Department meets key technical assistance requirements of Member States and regions, supporting their efforts to build a competitive and sustainable tourism sector. Member States gain from the transfer of knowledge and technology through the Organisation’s development assistance activities. UNWTO also promotes sustainable livelihoods and combats poverty through the implementation of projects in its ST-EP (Sustainable Tourism – Eliminating Poverty) Programme [UNWTODevelopmentAssistance08.pdf]. India is one country that has gained considerably from the interaction in the hospitality industry. Some Successes of the UNWTO UNWTO has achieved success in various programmes. Some examples are: 1. Sport and Tourism - Twin Powers Unleashed by latest WOA-UNWTO ST-EP forum: The World Olympic Association and its partner, the UNWTO ST-EP Foundation hosted the 4th 2010 Vancouver Olympics Sport, Tourism & Development Forum in February this year. UNWTO ST-EP Foundation Chairman Ambassador Dho Young Shim spoke of the Thank You Small Library Programme (www.sportsfeatures.com), an education program which builds small libraries in the poorest countries globally, offering children a chance to learn to read. The programme has had a substantial impact on literacy rates wherever the libraries are established (ibid). 2. UNWTO Aid to Countries Affected by the Indian Ocean Tsunami of 2004 In 2005, UNWTO decided to assist in rebuilding the tourism sector in destination countries affected by the 2004 Indian Ocean tsunami. This was over and above its role of promoting sustainable tourism in developing countries (Yearbook of the United Nations 2005, Volume 59, By United Nations p1595). Countries like Thailand, Sri Lanka, Maldives and Mauritius were helped in their recovery (www.tsunami2004.net) and it established the Consulting Unit on Biodiversity and Tourism for Tsunami Affected Countries, funded by Germany, in October 2006 (www.unwto.de). Pro-Poor Tourism: Do ‘Tourism Exchanges Mainly Promote the Countries of the South’? Poverty reduction is an important item on the tourism agenda. In a Press Release, UNWTO ( 2007), has identified poverty reduction, along with climate change, as a global challenge to the tourism industry. Hall (2007, p 2) says ”One of the fastest growing areas in international tourism, the Asia-Pacific, which accounts for just over half of the world’s population, only accounts for 19.3% of the world’s arrivals. In contrast, Europe, with just over 10% of the world’s population has over 50% of market share. The potential of tourism to contribute to the economic development of the developing countries, at least at a macro-level, would appear to be questionable unless there are massive shifts in flows of international arrivals.” However, barriers to tourism like high visa fees need moderation. The use of tourism as a tool for economic development in developing countries has been a focus of research in tourism studies since the 1970s (De Kadt, 1979; Lea, 1988). In the 1990s, this research was widened by establishing new forms of tourism like ecotourism in which economic benefits received by destination communities were of significant concern (Cater, 1993; Hall & Lew, 1998). An important aspect of the concern in human well-being as a tourism development goal has been the growth of academic and development agency interest in the relationship between tourism development and poverty-reduction strategies –often referred to as pro-poor tourism (PPT). The PPT field has developed in great part as a result of interchange between academics and researchers and public and non-government organisations (NGOs) with interests in the less-developed countries. The PPT field has, however, become increasingly open to contest and critical debate. The range of opinions regarding PPT is well summed up by Hall and Brown (2006: p 13), “Does PPT simply offer another route by which economic imperialism, through tourism, may extend its tentacles, or is it an appropriately liberating and remunerative option?” In one sense, the focus on providing tourism employment to the unemployed is proactive. PPT suggests that qualitative differences exist when dealing with the poor (Ashley, Boyd and Goodwin, 2000). But critics decry it as neo-liberalism unable to resolve the north- south divide. Solomon (2005), quoted in Hall (2007, p 4) says, “The occasional burst of charity is not what we are talking about and asking for. Tourism is a purely economic function insofar as the industry is concerned… Tourism is largely an avenue for the affluent whose wealth has been accumulated in the context of unjust structures and systems of society. Incremental changes in policy with slogans like ‘liberalisation with a human face’ will stop far short of what is needed.” Developing countries received US$177 billion in tourism receipts in 2004 with tourism being the primary source of foreign exchange earnings in 46 of the 49 poorest nations termed Least Developed Countries (eTurboNews, 2005). The notion espoused by the UNWTO that “tourism exchanges benefit primarily the countries of the South’ is ridiculous and hides the reality that not only is the consumption of tourism the domain of the wealthy, but in many ways so is its production”(Hall, 2007, p 6). Zhao & Ritchie (2007, p 9) state that “UNWTO, inspired by the vision and innovative work of the Pro-Poor Tourism Partnership, launched the Sustainable Tourism program for Eliminating Poverty program (ST-EP) aiming to promote socially, economically and ecologically sustainable tourism as a gateway to development and reduction of poverty among the world’s least developed countries. Recent years have also witnessed a wide range of large-scale, tourism-based development projects around the world, for example in Vietnam” (UNWTO, 2004). The confluence of tourism and poverty, previously two separate domains (Bowden, 2005), reflects an essential change in the philosophy of tourism development and poverty alleviation, which is illustrated by Figure 1. A common belief is that as long as the whole region gets wealthier, the benefits brought by economic growth will eventually trickle down to the local poor through multiple channels, such as employment, public welfare and family network (Zeng et al., 2005). As a result, the impact of tourism on poverty alleviation has thus been indirect. UNWTO, through ST-EP, has removed the middle man. Figure 1 Source: Zhao & Ritchie The Mid-life Crisis "The global economic crisis turned 2009 into one of the toughest years for the tourism sector. However, the results of recent months suggest that recovery is underway, even somewhat earlier and at a stronger pace than initially expected.” Taleb Rifai, Secretary-General, UNWTO, Press Release, 18 January 2010 (www.unwto.org). In the Press Release quoted above, titled ‘International Tourism on Track for a Rebound after an Exceptionally Challenging 2009’, UNWTO states that “Growth returned to international tourism in the last quarter of 2009 contributing to better than expected full-year results, according to the latest statistics on Tourism. International tourist arrivals fell by an estimated 4% in 2009. Prospects have also improved with arrivals now forecast to grow between 3% and 4% in 2010” (ibid). “International tourist arrivals for business, leisure and other purposes are estimated to have declined worldwide by 4% in 2009 to 880 million. This represents a slight improvement on the previous estimate as a result of the 2% upswing in the last quarter of 2009. Asia and the Pacific and the Middle East led the recovery with growth already turning positive in both regions in the second half of 2009” (ibid). The Future UNWTO forecasts a growth in international tourist arrivals of between 3% and 4% in 2010 (ibid). The International Monetary Fund (IMF) has recently stated that the global recovery is occurring "significantly" faster than expected. Emerging economies are showing stronger performance at +5.1%, alongside a sluggish one for advanced economies at +1.3%. By region, Asia should continue to show the strongest rebound, while Europe and the Americas are likely to recover at a moderate pace. Africa will continue its positive trend benefiting from the extra boost provided by the 2010 FIFA World Cup in South Africa (ibid). UNWTO’s Panel of Experts’ predict that 2010 would close at or around the level of the boom years 2004-2007. "Although prospects have improved, 2010 will still be a demanding year. A premature withdrawal of input stimulus measures and the temptation to impose extra taxes may jeopardize the pace of rebound in tourism," feels Taleb Rifai (ibid). Recommendations: It is recommended that: UNWTO increases interaction with developing countries and ensures that sundry costs related to the visit be minimised, like cost of visas, etc. UNWTO maintain its focus on sustainable development of tourism along with WTTC. The commitment of the developed countries to the Pro Poor Programme be validated. UNWTO enhance its promotion of the ST-EP spending. Conclusion: The United Nations World Tourism Organisation has shown that Tourism, if handled correctly, will invariably attract visitors. The WTTC and Agenda 21 will also help in achieving the aim. UNWTO assists nations in sustaining their position in complex national and international markets, while also promoting sustainable livelihoods and combats poverty through the implementation of projects in its ST-EP Programme. Having weathered the 2008-2009 storm, UNWTO forecasts a growth in international tourist arrivals of between 3% and 4% in 2010. This can only be a harbinger of better days for the tourism industry. Works Cited Ashley, C., Boyd, C. and Goodwin, H. (2000) Pro-Poor Tourism: Putting Poverty at the Heart of the Tourism Agenda. Natural Resource Perspectives. Number 51. London: Overseas Development Institute. Bowden, J. (2005) Pro-poor Tourism and the Chinese Experience, Asia Pacific Journal of Tourism Research, 10(4), 379-398 Cater, E. A. (1993) Ecotourism in the third world; Problems for sustainable development. Tourism Management 14(2), 85-90. De Kadt, E. (ed) (1979) Tourism-Passport to Development? Oxford: Oxford University Press. Hall, C. M. and Lew, A. A. (eds) (1998) Sustainable Tourism Management: Geographical Perspectives; Harlow; Addison Wesley Longman. Hall, C. M. (ed) ( 2007) Pro-poor tourism: who benefits? : perspectives on tourism and poverty reduction; Channel View Publications 2007; ISBN-13: 978-1-84541-075-9 Hall, D. and Brown, F. 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UNTWO (2007) Tourism will contribute to solutions for global climate change and poverty challenges, Press Release, UNWTO Press & Commn Department, March 8, Madrid. extracted from Yearbook of the United Nations 2005, Volume 59 by United Nations; UNITED NATIONS PUBLICATIONS 2008; ISBN 978-92-1-100967-5 United Nations World Tourism Organisation (UNWTO, 2004); Final Report on Ministerial Conference on Cultural Tourism and Poverty Alleviation; 11-12 June 2004, Hue, Vietnam, Madrid: 2004 Macintosh and Goeldner (1986), as reported in http://www.prm.nau.edu/PRM300/what-is- tourism-lesson.htm; extracted on 28 March 2010 UNWTO annual revenue, as quoted in http://www.prm.nau.edu/PRM300/what-is-tourism- lesson.htm, accessed 28 March 2010. UNWTO annual revenue in 2020, as quoted in http://mlm.ccut.edu.tw/Teacher/ %E9%99%B3%E6%B0%B8%E5%9D%A4%20%E8%80%81%E5%B8%AB/mysite/images/%E7%A0%94%E7%A9%B6%E8%A8%88%E7%95%AB/%E6%9C%9F%E5%88%8A/Diagnosing%20Taiwan%20Toursim%20Industrial%20Problems%20from%20the%20Prespective%20of%20WTO%20Service%20Trade.pdf,accessed 30 March 2010. International tourism in 2010, as quoted in http://www.unwto.org/aboutwto/index.php, accessed on 30 March 2010. Sustainable Development of Tourism, as quoted in http://www.unwto.org/sdt/mission/en/ mission.php, accessed 30 March 2010. Agenda 21; available at http://www.un.org/esa/dsd/agenda21/res_agenda21_40.shtml accessed on 12 April 2010. Press Release, 18 January 2010, given in http://www.unwto.org/media/news/en/press_det. php?id =5361&idioma=E , accessed on 30 March 2010. USA’s largest employer, as given in http://www.bea.gov/newsreleases/industry/tourism/ tournewsrelease.htm, accessed 31 March 2010. 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Least Developed Countries, as given in eTurboNews (2005) available at http://www.travelwirenews.com/eTN/16SEP2005.htm, accessed on 31 March 2010. Read More