JOB/SERV/286  
 
21 February 2019  
(19-1012) Page: 1/3 
Council for Trade in Services  
Special Session  Original: English  
 
 
COMMUNICATION FROM CHILE, MEXICO, NEW ZEALAND AND PANAMA  
EXPLORATORY DISCUSSIONS ON MARKET ACCESS : TOURISM AND RELATED SERVICES  
The following communication , dated 20 February 2019 , is being circulated to Members of the Council 
for Trade in Services in Special Session , at the request of the delegation s of Chile, Mexico, New 
Zealand and Panama.  
 
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In JOB/SERV/282, circulated on 13 June 2018, Chile, Mexico, New Zealand a nd Panama proposed 
that Members exchange views on current areas of interest in relation to market access, against the 
background of relevant trade, policy, and market developments.  
Tourism and travel related services is a sector of economic and trade impor tance for Chile, Mexico, 
New Zealand, and Panama, as well as for numerous other WTO Members. For example, it is a sector 
that was identified in the 2014 LDC Collective Request under the Services Waiver1, and has been a 
subject of discussion during the DDA  negotiations. Through this communication, we wish to present 
our initial views on a sector of common interest for developed and developing Members across all 
regions, and initiate an exchange with other delegations. We consider that such exploratory 
discussions would help to better appreciate the views of Members on key issues, as well as their 
market access aspirations. The following is presented without prejudice to negotiations.   
1  THE ECONOMIC AND TRADE IMPORTANCE OF THE TOURISM SECTOR  
1.1.  Much of the econom ic and trade performance of an economy is dependent on the productivity 
of its services sector. The services sector also provides the bulk of employment and income for many 
communities. Tourism, in particular, is a key sector in world services trade, espec ially for developing 
economies. According to balance -of-payments statistics, travel represented 25% of world 
commercial services exports in 2017, and it accounted for 32% of services exports of developing 
countries, and 53% in the case of LDCs .2 
1.2.  The tourism sector, more than most services sectors, relies on trade and is key to the economic 
vitality of many communities, including in rural and remote areas. The sector contributes 
significantly and directly to economic activity and employment, and also h as a large indirect impact 
through associated industries that support the core services provided to travellers. Therefore, it can 
significantly contribute to diversification and development of an economy. In communities with lower 
economic activity, touris m assists in creating demand for other products and services, driving 
economic growth. In fact, in 2017, travel and tourism accounted for 3.2 percent of global GDP3, and 
under a broader definition that takes into account the impact of travel and tourism a cross different 
sectors, the contribution to global GDP was estimated at 10%.4 Tourism is closely linked with 
 
1 See WTO Document S/C/W/356, 21 July 2014 , "Submission by the d elegation of Uganda on behalf of 
the LDC Group:  Collective Request Pursuant to the Bali Decision o n the Operationalization  of the Waiver 
Concerning Preferential Treatment t o Services and Service Supplie rs of Lea st Developed Countries".  
2 http://data.wto.org/ . 
3 World Travel and Tourism Council, Travel and Tourism - Economic Impact 2018, World , 
https://www.wttc.org/ -/media/files/reports/economic -impact -research/regions -2018/world2018.pdf . 
4 World Tourism Organization, Tourism Highlights; 2 018 Edition , https://www.e -
unwto.org/doi/pdf/10.18111/9789284419876 . JOB/SERV/286  
 
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  development, as the strong increase in the number of travels over the years has gone hand in hand 
with an expansion in the number of destinations . Developing Members often have a comparative 
advantage with respect to tourism because of climate, natural resources and the relative low cost of 
travel for tourists from developed countries and, increasingly, other developing countries .  
1.3.  The sector is labour intensive and supports inclusive economic development through a wide 
range of employment opportunities, particularly for women and youth, for low - as well as high -
skilled workers.  Travel and tourism directly account for 3.8 percent of global employm ent. More 
broadly, it supports 1 in 10 jobs around the world.5 
1.4.  Additionally, because the export of tourism services often involves local consumption, the 
sector creates unique opportunities for people to become services exporters with relatively low entry  
costs.  Start-up and small tourism service suppliers are more likely to have lower entry costs and to 
face fewer technical barriers since consumers travel to the territory of the service supplier.  While 
these types of start -up services providers do have ch allenges, such as those relating to skills and 
finance, providing the service locally provides significant benefits.  
1.5.  The sector has grown strongly in recent years, and the trend is expected to continue in view 
of the rise of disposable income and greater e ase of transport.  In 2017, international tourist arrivals 
increased by 6.8%, reaching 1.3 billion, more than twice the number of arrivals from 2000.6 The 
number of international travellers is expected to reach 1.8 billion in the next 12 years, and signifi cant 
private investment and increased service supply will be needed to support future growth, including 
as regards accommodation, passenger transport, or recreational services.  As tourism continues to 
grow globally, developing Members are playing an increa singly prominent role in the growth of the 
sector.  
2  AREAS OF INTEREST FOR IMPROVING GATS COMMITMENTS RELATED TO TOURISM AND 
RELATED SERVICES  
2.1.  GATS commitments in tourism and related services can make an important contribution to the 
policy environment for th e sector by providing for greater transparency, predictability and 
contestability.  This is key to fostering trade and investment to grow the local tourism industry and 
reap broader economic benefits.  For example, mode 2 commitments help ensure that future 
measures are not imposed on outbound travellers that would result in discrimination against foreign 
services or suppliers.  Mode 3 commitments provide guarantees for the establishment and operation 
of foreign suppliers and help to increase foreign direct in vestment and grow local tourism activities. 
Mode 4 commitments can complement the other modes where in person delivery of the service is 
required.  
2.2.  The number of Members with GATS commitments in 'tourism a nd travel related services ', 
at 144, is higher than for any other sector in the Services Sectoral Classification List (W/120).  This 
likely reflects the fact that Members at all levels of development attach high importance to tourism 
and have interest in expanding their tourism sectors and encouraging invest ment.  
2.3.  However, commitments within the sector are varied, and there are certain areas where we 
would have interest in discussing improvements.  These preliminary views reflect different priorities 
among co -sponsors of this communication.  We also acknowledge  that other Members may have 
interest in different areas of improvement.  
2.4.  First, specific commitments of Members could better cover the sector.  In addition to those few 
Members that have no commitments in the sector, the majority of Members do not have 
comm itments across all three main components of the sector, namely 'hotels and restaurants', 
'travel agencies and tour operator services', and 'tourist guide services'.  
2.5.  Second, in a number of cases, the level of commitment bound for sectors committed seems 
overly limited.  Specific commitments are sometimes 'unbound' under certain modes of supply or, 
when limitations are scheduled, these appear more restrictive than the level of openness provided 
in practice.  This can create uncertainty for tourism service provi ders and prevent further expansion 
 
5 World Tourism Organization, op. cit.  
6 World Tourism Organization, op. cit.  JOB/SERV/286  
 
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  abroad.  For example, the proportion of Members without commitments under mode 1  is significantly 
higher than for other modes of supply, and this may affect suppliers taking advantage of technology 
for cross -border supply,  such as for services related to rentals and bookings.  Commitments that bind 
existing openness would be consistent with efforts to facilitate investment and grow the local tourism 
industry.  
2.6.  Third, in view of strong inter -linkages, liberalisation commitment s in a number of other sectors 
would support and contribute to the growth of the tourism sector.  Commitments in other sectors 
such as passenger transport (e.g., cruise ships), construction, recreational services, convention 
services, and car rental service s would appear, preliminarily, as particularly relevant for the tourism 
industry.  The number of Members with commitments in these sectors is significantly lower than in 
tourism services.  
3  QUESTIONS FOR DISCUSSION  
i. How do Members view the contribution of trad e in services and related policies in the 
tourism sector?  What has been the recent nati onal experience in that regard?  
ii. What do Members see as main areas of interest for  improving GATS commitments in 
'tourism and travel related services '? Have these evolved since earlier discussions under 
the DDA?  
iii. Which other services sectors do Members see as most important to the development of the 
tourism industry, and how might commitments best provide support in that regard?   
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