./.WORLD TRADE
ORGANIZATIONS/CSS/W/128
30 November 2001
(01-6125)
Council for Trade in Services
Special SessionOriginal:  Spanish
COMMUNICATION FROM COSTA RICA1
Tourism Services
The following communication has been received from the delegation of Costa Rica, with the
request that it be circulated to Members of the Council for Trade in Services.
_______________
I. IMPORTANCE OF THE SECTOR
1. The tourism industry is of great importance to developing countries and can contribute
significantly to the goal of sustainable development by generating employment, preserving natural
resources, developing infrastructure and attracting foreign direct investment.
2. In Costa Rica, the tourism sector is of considerable economic importance.  In 2000, total
tourism-related earnings amounted to US$1.145 million, accounting for 67.4 per cent of total services
exports and almost 15 per cent of total exports in goods and services.  In the first half of 2001, the
number of tourist arrivals increased by 8.8 per cent as compared to the first six months of the previousyear.
3. According to domestic surveys, more than 67 per cent of holiday passengers who entered the
country during the high season 2000 did so on an independent basis, spending an average of
US$85.60 a day for an average stay of 11.1 nights.
4. In terms of direct and indirect employment, tourism generates some 170,000 jobs.  Costa Rica
has a capacity of 30,940 rooms, most of which are managed and run by small and medium-sized
enterprises.  Close to 58 per cent of the rooms are located in the provinces of Guanacaste, Puntarenas
and Limón, which have the lowest development indices in the country.
5. As is to be expected, however, the sector is  directly affected by the economic slowdown in
the industrialized countries, and global performance in the economic, political and social spherestherefore impacts on tourism in Costa Rica.
6. The terrorist attacks of 11 September in the United States have had serious consequences, and
the task of determining and measuring their magnitude is only just beginning.  It is estimated that
tourism receipts in Costa Rica will drop by US$100 million this year and by some US$200 million in
2002.  Job creation was down by 14 per cent with 18,000 lay-offs in the fortnight that followed the
                                                     
1 This communication is without prejudice to Costa Rica's position on this and other sectors or to any
future offers on any such sectors.  Costa Rica reserves the right to amend its proposal during the negotiations.This proposal is not to be analysed as a legal document.S/CSS/W/128
Page 2
tragedy.  The number of tourists fell by some 17.5 per cent as compared to the same period the
previous year.  As part of its review of trade in services, the Services Council should evaluate the
effects of these events on tourism, and Members could share information on measures adopted in
response to the crisis affecting the sector.  The WTO Secretariat could, moreover, update Background
Note S/C/W/51, taking into account the results of this evaluation.  Today, it is vitally important toremove barriers restricting growth in the industry,  which is the purpose of Costa Rica's proposal on
the tourism services sector.
II. ANALYSIS OF NATIONAL SCHEDULES
7. A large number of WTO Members have undertaken commitments on tourism services,
reaching a level that is "greater than for any other sector, and indicates the desire of most Members to
expand their tourism sectors and to increase inward FDI as part of efforts to promote economic
growth".
2  There nevertheless remain some obstacles relating, inter alia , to restrictions on foreign
direct investment, immigration control, documen tation requirements, restrictions on currency
movements and lack of transparency.  These limit the sector's potential and diminish the benefits for
tourism service providers, and developing countries in particular.
8. The tourism services sector is directly linked to performance in other sectors such as
distribution systems, advertising and hotel constructi on and management services, and in particular air
transport services, which are not covered by the GATS.  In Costa Rica's view, it is important to
address obstacles in sectors related to tourism services that are liable to affect growth in the industry;
this primarily concerns the use of specific anti-competitive practices.
 III. PROPOSAL
9. Costa Rica considers it important to have a list of services characteristic of or related to
tourism, in order to evaluate progress and achievements in the negotiations from a global perspective.
The proposals submitted by various Members3 regarding a possible list of tourism services are
extremely useful as a starting-point for the discussions.
10. In Costa Rica's opinion, it is also important that the Members should undertake broader and
more in-depth commitments on all modes of supply4, in particular on Modes 2 (consumption abroad)
and 3 (commercial presence).
11. The negotiations must include additional commitments regarding disciplines on the
prevention of anti-competitive practices, consumer protection, and access to and use of information.
The negotiation process must take account of advances made in the negotiations in other related
sectors and in the area of competition, pursuant to the mandate given by the fourth WTO Ministerial
Conference.
__________
                                                     
2 Document S/C/W/51, Tourism Services:  Background Note by the Secretariat, 23 September 1998.
3 See, inter alia , documents S/CSS/W/5, Communication from the European Communities and their
member States:  Reaction to the Communication from th e Dominican Republic, El Salvador and Honduras on
the Need for an Annex on Tourism, 28 September 2000;  S/CSS/W/19, Communication from the DominicanRepublic, El Salvador, Honduras, Nicaragua and Panama:  The Cluster of Tourism Industries, 5 December2000;  and S/CSS/W/107, Communication by Bolivia, Dominican Republic, Ecuador, El Salvador, Honduras,
Nicaragua, Panama, Peru and Venezuela:  Draft Annex on Tourism, 26 September 2001.
4 It is recognized that in many cases commitments cannot be undertaken under Mode 1 for reasons of
technical feasibility.