RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/298 
8 June 2009 
 (09-2772) 
Council for Trade in Services 
  
 
 
TOURISM SERVICES 
 
Background Note by the Secretariat1 
  
1. This Note has been prepared at the request of  the Council for Trade in Services, with a view 
to stimulating discussions in the Council on the tourism sector.  It provides background 
information and updates a previous note on trade in  tourism services (S/C/W/51, dated 23 September 
1998).  This Note focuses on  developments and  issues considered to be most relevant to the GATS.   
It is not intended to provide a comprehensive account  of the sector.  For th e purpose of conciseness, 
the focus of this note continues to be on interna tional tourism (as defined below), rather than on 
domestic tourism or tourism in general.   
I. INTRODUCTION 
2. Over more than 50 years, international touris m has proven to be remarkably resilient, with 
high rates of sustained growth, especially in developing countries (Table I).  Broadly defined, tourism can be regarded as the world's largest industry and one of the fastest-growing, accounting for over 
one-third of the value of global services trade.  Su rprisingly, however, tourism is actually far less 
globalized than might be commonly assumed. 
 
Table 1:  International Tourist Arrivals, 1950-2020 
  Source : World Tourism Organization a 
 a World Tourism Highlights , 2008 Edition, p.11. 
 
3. Tourism's multi-sectoral linkages are both a strength and potential source of weakness:  they 
offer extensive opportunities for poverty alleviation and economic diversificati on, but inefficiencies 
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. 
S/C/W/298 
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  or inappropriate regulation in particular sect ors can reduce overall competitiveness. A current 
example of this could be the rapidly growing interna tional market for health tourism.  Tourism is also 
a highly "perishable" commodity, in the sense that unsold airline seats, hotel rooms, etc., have no 
residual value.  Immigration and entry/exit control regulations have a direct influence on the supply 
on international tourists, and the industry is vulnerable to temporary shocks, such as terrorism or 
health crises.  Important challenges facing the industry also include the lack of adequate 
infrastructure, global warming and other envir onmental issues, and social/cultural concerns. 
4. Tourism is highly labour-intensive, and an important (actual and potential) source of 
employment, including in remote and rural areas.  The expansion of low-cost air travel has radically 
transformed tourism as a whole;  nonetheless, it is argued that the current system of bilateral aviation 
agreements continues to limit tourism potential.   One of the most characteristic aspects of 
international tourism is the cross-border movement  of consumers, i.e., the "user" coming to the 
supplier.  This permits even unskilled workers in  remote areas to become  exporters of tourism 
services.  Not surprisingly, the sector had alread y attracted negotiators' attention during the Uruguay 
Round.
2   
5. In the context of the GATS negotiations under the Doha Development Agenda, one of the 
earliest documents was a proposal for a GATS Anne x on Tourism, sponsored originally by the 
Dominican Republic, El Salvador and Honduras.3  The proposal has two main aspects:  more 
comprehensive treatment of the tourism sector (with respect to classification issues), and the prevention of anti-competitive practices.
4  To help address the issues raised in the proposal, a WTO 
Symposium on Tourism Services was held in 2001.5   
II. DESCRIPTION OF THE SECTOR 
6. International tourism is defined by the Wo rld Tourism Organisation (UNWTO) as occurring 
when a traveller crosses an  international border, and spends at le ast one night in the country visited, 
but less than one year (Annex Table I).  While leisure travel is the most prevalent type of international 
tourism, other major subcategories include busin ess and professional travel, visiting friends and 
relatives, religious travel and pilg rimages, and health treatments.  
7. Under the WTO's Services Sectoral Classification List  (WTO document MTN.GNS/W/120), 
the scope of "Tourism and Travel Related Services " is distinctly limited in scope, comprising only 
hotels and restaurants, travel agencies and tour operators, and tourist guide services (complemented 
by a residual "Other" category).  Numerous other tourism services - such as computer reservation systems;  cruise ships and many other transport servi ces;  hotel construction;  car rentals;  certain 
distribution, business, and financial services;  as well as most recreational, cultural and sporting 
                                                     
 
2 During the Uruguay Round, a Working Group on Tourism Services was formed, and a number of 
meetings held.  At the request of the Working Group, the Secretariat circulated a document entitled Trade in 
Tourism Services , dated 4 July 1990 (MTN.GNS/W/61).  The paper provided an overview of:  tourism-related 
activities;  forms of trade in tourism services;  motivations and objectives for regulation;  and existing 
regulations.  Some basic statistics were presented, as well as background information on the World Tourism 
Organization, an inter-governmental United Nations af filiated institution.  A second Secretariat paper, 
Classification of Tourism-Related Services , is dated 23 October 1990 (MTN.GNS/TOUR/W/1/Rev. 1). 
3 Communication from the Dominican Republic, El Salvador, and Honduras – Preparations for the 
1999 Ministerial Conference  (WTO document S/C/W/127 and Corr.1, 14 October 1999 & 3 November 1999). 
4 For further details see Tourism Services , Information Note by the Secretariat, WTO document 
JOB(05)/229, 12 October 2005. 
5 The Symposium had five main themes:  sectoral linkages, relevance of Tourism Satellite Accounts 
(TSA);  structure of existing commitments;  implications of rapid technological change;  The competitive 
environment;  and implications for negotiations.  Symposium documents and presentations are available on the 
WTO website, at http://www.wto.org/english/ trat op_e/serv_e/symp_tourism_serv_feb01_e.htm.    S/C/W/298 
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  services - have been placed within other W/120 sectoral categories (Annex Table II).6  While this 
complicates the task of negotiating tourism-rela ted GATS commitments, it often makes sense from a 
regulatory perspective (e.g. having the transport mini stry establish and administer safety standards for 
tourism buses). 
8. As category 9 of the Services Sectoral Classification List , "Tourism and Travel Related 
Services ", is divided into four sub-sectors, the firs t three of which have associated listings (and 
definitions) under the United Nations' "Provisional Central Product Classification" (CPC):  A. Hotels 
and restaurants (including catering)  (CPC 641-643);   B. Travel agencies and tour operators services  
(CPC 7471);  C. Tourist guides services  (CPC 7472);  and D. Other .  CPC 641 (Hotel and other 
lodging services) is further sub-divided into CPC 6411 (Hotel lodging services), CPC 6412 (Motel 
lodging services) and CPC 6419 (Other lodging services) , the last of which is further separated to 
include holiday camp services, youth hostels, etc.  CPC 642 (Food serving services) is divided into full restaurant services (CPC 6421), self-service facilities (CPC 6422),  catering services (CPC 6423) and other (CPC 6429).  The CPC 643 classification (Beverage serving services for consumption on the premises) is composed of services without  entertainment (CPC 6431) and those with 
entertainment (CPC 6432).  Travel agencies and tour operators services (CPC 7471 and Tourist guides 
services (CPC 7472) are not further subdivided.
7 
9. Attempting to precisely define or measure tourism remains a difficult task.8  In an effort to 
improve understanding, the "OECD Tourism Economic  Accounts" were deve loped, and in 1993 the 
International Forum on Tourism Statistics was establ ished by the OECD and Eurostat to further the 
exchange of views.  In cooperation with the UNWTO, an Annex on Tourism Related Services  was 
created and added to the provisional CPC (on pa ges 164-168).  The Annex collects the relevant 
tourism-related categories from the main body of the CPC .  Current efforts are focused on the 
development of "Tourism Satellite A ccounts" (TSA) in order to provide for an improved analytical 
framework as well as comparable international accounts (Box I). 
10. The UNWTO notes that TSA has been forma lly accepted by the United Nations and 
associated agencies (such as OECD, Eurostat, IMF, ILO,  etc.) as an international standard to measure 
tourism's macroeconomic contribution. Also, the In ternational Monetary Fund (IMF) uses TSA as the 
Balance of Payments-related framework in relation to tourism as a set of international traded services, 
as well as the International Labour Organization (ILO)  in regard to the measurement of tourism-
related employment.  Nonetheless, as noted at a r ecent OECD conference, most TSAs currently face 
                                                      
6 See, for example, Communication from the Dominican Republic, El Salvador, and Honduras – The 
Cluster of Tourism Industries  (WTO document S/CSS/W/19, 5 December 2000).  
7 As previously noted by the Secretariat, adoption of CPC Rev. 1 for tourism would not result in any 
great changes:  "As far as hotels and restaurants are c oncerned the only changes are the aggregation of hotels 
and motels (only five Members have offered only one of those two items and would have to redraft their entries), and the aggregation of beverages services with and without entertainment (no redraft of entries needed 
as the five Members that have gone into that detail have  offered them both).  As far as travel agencies, tour 
operators and tourist guides are concerned, the only change is the disaggregation of travel agencies and tour 
operators services  (p 74710) into three categories:  travel agency  (r 67811), tour operators  (r 67812) and tourist 
information services  (r 67813).  This may possibly encourage commitments to be made on those subsectors as 
they would no longer have to be taken as a block."  A Qualitative Assessm ent of the Relevance of the Changes 
Resulting from CPC Rev.1  for Trade Negotiating Purposes  (WTO document S/CSC/W/9, 9 October 1997, p.3). 
8 One observer states "Better statistics are essential if we want to grasp better how ‘the biggest industry 
on earth’ works.  While this is easier said than done (a s UNWTO efforts to set up a TS A system show), there is 
much more statistical production than meets the eye.  Th e issue is often one of better dissemination." (Julio 
Aramberri, The future of tourism and globalization:  Some critical remarks , Futures (2008), 
doi:10.1016/j.futures.2008.11.015, p.2 (journal homepage: www.elsevier.com/locate/futures)). S/C/W/298 
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  several shortcomings, including complexity and lack  of timeliness, and consequently remain under-
used.
9   
Box 1.   Tourism Satellite Accounts (TSA) 
 
As emphasized by the UNWTO, statistical information is the prerequisite for consis tent economic analysis.  
Moreover, while the development component of tourism is generally accepted (i.e. a set of varied economic 
activities and products, many of which overlap with other industries and sectors), the lack of reliable tourism 
statistics and subsequent analysis of its macro-economic contribution remains an important barrier to defining 
and fostering tourism policies.     
 
"Satellite account" is a term developed by the United Nati ons to measure the size of economic sectors that are 
not defined as industries in national accounts.  Tourism, for example, is re garded as an amalgam of industries 
such as transportation, accommodation, food and bevera ge services, recreation and entertainment and travel 
agencies.  The key aspect is associating tourist purchases to the total supply of these goods and services within a 
country.   
 
TSA are used to provide the following data:  tourism's contribution of GDP;  tourism's ranking compared to 
other economic sectors;  the number of jobs created by tourism in an economy;  the amount of tourism 
investment;  tax revenues generated by tourism industries;  tourism consumption;  tourism's impact on a nation's 
balance of payments;  and character istics of tourism human resources. 
 
Twelve tourism industries are identified as part of TSA: 
  1. Accommodation for visitors 
  2. Food and beverage serving industry 
  3. Railway passenger transport 
  4. Road passenger transport 
  5. Water passenger transport 
  6. Air passenger transport 
  7. Transport equipment rental 
  8. Travel agencies and other reservation services industry 
  9. Cultural industry 
 10. Sports and recreational industry 
 11. Retail trade of country-speci fic tourism characteristic goods 
 12. Country-specific touris m characteristic industries 
(Each industry is defined in terms of the UN Interna tional Classification of Economic Activities (ISIC Rev.4).) 
 
As part of the TSA development process, the UNWTO co nsiders it essential to develop the System of Tourism 
Statistics (STS).  STS should be understood as that part  of the national statistical system providing reliable, 
consistent and appropriate statistical information on the socio-economic aspects relate d to tourism, integrated 
within all the economic and social statistics related to other fields, at different territorial levels.  The new 
International Recommendations for Tourism Statistics 2008 (IRTS 2008) and 2008 T ourism Satellite Account: 
Recommended Methodological Framework (TSA:RMF 2008)  constitute the updated reference framework for 
the STS.  As a consequence, they should be used as a basis  for harmonization, coordination and integration of 
available tourism statistical information. 
 
Main sources:  UNWTO, TSA Basic concepts  (available online at http://w ww.unwto.org/statistics/tsa/ 
project/concepts.pdf), TSA project  (available online at http://www.unwto. org/statistics/tsa/project.htm), and 
System of Tourism Statistics  (available online at http://www.unwto.org/statistics/sts/ description.htm. 
 
 
                                                      
9 Increasing the Use of Tourism Satellite Account Data for Business and Policy , presentation by Alain 
Dupeyras, OECD (available online at  http://www.forumstat.tourisme.gou v.fr/ftp/S5_8_DUPEYRAS.ppt#6).  
Also, despite the fact that TSAs are under construction or in use in 84 countries, only 44 responses were 
received to a recent UNWTO questionnaire ( TSA Data Around the World , Preliminary version, March 2009, 
p. 8, available online at http://www.u nwto.org/statistics/bali/tsa_data.pdf).  S/C/W/298 
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  III. ECONOMIC AND TRADE PROFILE OF THE SECTOR 
A. LONGER -TERM TRENDS  
11. Over the past six decades, tourism experien ced continued growth and diversification, 
becoming one of the world's largest  and fastest-growing economic sectors.10  M o r e  a n d  m o r e  
destinations have opened up over time and invested in tourism development, turning modern tourism 
into a key driver for socioeconomic progress.  To urism has become one of the major international 
trade categories, and the export income generated by international tourism currently ranks fourth after 
fuels, chemicals and automotive products.  For many developing countries, it is one of the main income sources and the number one export cat egory, creating much-needed employment and 
opportunities for development. 
12. The 2008 edition of the UNWTO's Tourism Highlights  reported that, by 2007, international 
tourist arrivals (preliminary estimates) had r eached 903 million (Annex Table III), from 25 million in 
1950 (Table I  (p.1)).  Overall export income generated by these arrivals (international tourism receipts 
and passenger transport) grew at a similar pace, overtaking the world economy, to over US$1 trillion by 2007, or almost US$3 billion per day.
11  While, in 1950, the top 15 destinations absorbed 98 per 
cent of all international tourist arrivals, by 197 0 the proportion was 75 per ce nt, falling to 57 per cent 
by 2007, reflecting the emergence of new destina tions, many of them in developing countries.  
Demonstrating the resiliency of international touris m, growth in internati onal arrivals between 1995 
and 2007 averaged over 4 per cent annually, d espite stagnation between 2001 and 2003 due to 
terrorism, SARS and the economic downturn.  By 2010,  international arrivals are expected to reach 
1 billion, and 1.6 billion by 2020 (Table I).   
13. International tourism receipts (preliminary estimat es) rose to US$856 billion (€ 625 billion) in 
2007 (Annex Table IV), corresponding to an increase in real terms of 5.6 per cent over 2006.  In 
absolute terms, receipts increased by US$114 billio n, but only by € 34 billion due to the devaluation 
of the US dollar against the euro and other world curren cies.  In real terms, i.e. adjusted for exchange 
rate fluctuations and inflation, growth reached 5.6 per cent. With this increase, international tourism 
revenues maintained the momentum of 2006 (5.1 pe r cent growth), resulting in a series of four 
consecutive years of substantial growth.  For LDCs , both international visito r arrivals and revenues 
have grown rapidly in recent years, by 8.2 per cent and 12.0 per cent annually, respectively, between 
2000 and 2005.12  By comparison, worldwide growth of international tourism over the same time 
period was significantly lower, at 3.3 per cent and 7.1 per cent, respectively.  Developing countries as a whole increased their share between 2000-2006 from 34. 1 per cent to 39.5 per cent for international 
arrivals, and from 25.6 to 30.3 per cent of international receipts. 
14. In 2007, just over half of all international touris t arrivals were motivated  by leisure, recreation 
and holidays (51 per cent) – a total of 458 million.  Business travel accounted for some 15 per cent (138 million), and 27 per cent represented travel for other purposes, such as visiting friends and 
                                                     
 
10  This and the following several paragraphs are based on UNWTO, Tourism Highlights , 2008 Edition. 
11 For destination countries, receipts from internatio nal tourism count as exports and cover transactions 
generated by same-day as well as overnight visitors. Howe ver, these do not include receipts from international 
passenger transport contracted from companies outside the travellers’ countries of residence, which are reported 
in a separate category, ‘International Passenger Tr ansport’. Although the availability of comparable 
international data is somewhat limited, the export valu e of international passenger transport has in recent years 
been estimated at around 16 per ce nt of the combined receipts from international tourism and passenger 
transport, corresponding in 2007 to some US$165 billion against US$143 billion in 2006.  This takes total 
receipts from international tourism, in cluding international passenger transpor t, to over US$1 trillion in 2007. In 
other words, almost US$3 billion a day is earned by international tourism. 
12 WTO document WT/COMTD/LDC/W/41/Rev.1, Market Access for Products and Services of Export 
Interest to Least-D eveloped Countries, 21 February 2008, p. 19. S/C/W/298 
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  relatives (VFR), religious reasons/pilgrimages, health  treatment, etc. (240 million).  Slightly less than 
half of arrivals (47 per cent) travelled by air in  2007, while the remainder (53 per cent) arrived by 
surface transport– whether by road (42 per cent), rail (4 per cent) or water (7 per cent) (Chart I).  Over 
time, the trend has been for air transport to grow at a faster pace than surface transport, so the share of 
air transport is gradually increasing. 
Chart 1:  Inbound tourism, 2007  
   By purpose of visit    By means of transport 
   
 
 
Source : World Tourism Organization a 
a World Tourism Highlights , 2008 Edition, p.3. 
 
15. In terms of international arriva ls, France continued to hold the lead position in 2007, ahead of 
Spain and the United States.  In the ranking for inte rnational receipts, the same countries appeared in 
the top three places, but with the US ranking first and France third, while Spain maintained second 
place (Annex Table V).  This highlights the fact that the US attracts a greater share of higher-spending long-haul tourists than its European competitors, which rely more on short-haul tourism.  China, 
fourth in arrivals, remained fifth in terms of recei pts, while the opposite was the case with Italy.  The 
UK and Germany ranked sixth and seventh, in terms of both arrivals and receipts, while eighth to 
tenth places in terms of arrivals were taken by th e Ukraine, Turkey and Mexico.  Australia, Austria 
and Turkey closed the top ten in terms of receipts.
13  The top ten tourism earners accounted for 50 per 
cent of the total estimated US$856 billion of international tourism receipts, while their share of international tourist arrivals was slightly lower, at 46 per cent. 
16. In recent years, outbound tourism has increasingly been driven by emerging markets (Annex 
Table VI).  In the 2007 ranking of  international tourism spending, China moved to fifth place, with an 
expenditure on tourism abroad of nearly US$30 bi llion.  Japan fell from fifth to seventh position, 
behind Italy, having been the world’s third largest  spender ten years ago.  The first four places 
remained unchanged, with Germany leading (US$83 billion), followed by the US, the UK and France.  
The Russian Federation moved to ninth position, behi nd Canada and ahead of the Republic of Korea, 
following its 22 per cent growth in spending abroad  in 2007.  Among the world’s top ten spenders, 
apart from the Russian Federation, the strongest growth came from China (+23 per cent), Canada 
(+14 per cent) and the Republic of Korea (+11 per cent ).  Only one market, Japan, recorded negative 
growth (-0.2 per cent in yen).  Among the other sour ce countries in the top ten, Germany, the world’s 
major spender on tourism, turned in the weakest perf ormance (but this was still +3 per cent in euro 
terms), with the remainder achieving increases of betw een 5 per cent and 8 per cent for the year.  2007 
                                                     
 
13 Due attention should be paid to the fact that receipts are expressed in US dollars and, as a result of 
the considerable US dollar deprecia tion during 2007, many destinations ’ receipts were magnified in dollar 
terms. 
 S/C/W/298 
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  was another strong year for emerging markets:  outside the top ten, source countries that increased 
international tourism expenditure by over 15 per cent were Saudi Arabia, Brazil, Egypt, Malaysia, 
Hungary, Argentina, Indonesia, South Africa, Turk ey, the Czech Republic, Ire land and the Ukraine. 
17. In terms of foreign direct investment, one of the more surprising findings of UNCTAD's 
research on tourism-related FDI is that tourism is  actually one of the less-globalized industries: 
On the basis of the data available, at the global level, FDI in tourism is actually quite 
low, compared to other activities in which FDI is more prevalent and compared to 
domestic investment.  The combined outward  tourism FDI stocks of the world’s top 
ten source countries are around US$88.2 billion – approximately 1.5 per cent of these 
countries’ total outward FDI stocks.  Secondly, the share that is directed towards 
developing countries is also small.  Official  data are mostly lacking but, on the basis 
of countries reporting to UNCTAD, the Unite d Nations repository of official FDI 
information, it appears that developing c ountries receive about one third of tourism 
FDI inflows.  
Developing countries were the target of 21 per cent of world tourism related mergers 
and acquisitions (M&As) during the year s 2002–2005, and hosted 70 per cent of all 
tourism-related ‘greenfield’ in vestments.  Much of this investment is ‘south–south’ – 
again reflecting general trends in the wo rld of FDI that extend beyond the tourism 
sector.  Hong Kong China, India, Jamaica,  Malaysia, Mauritius, Singapore and South 
Africa, for example, are all appearing as new sources of outward tourism FDI in their regions and beyond, in addition to more  long-standing investors from the Arab 
countries.
14  
18. A recent article has claimed that, as important as the dynamics (economic and otherwise) 
unleashed by tourism are, they elicit slower integr ation than finance, banking, movies, television or 
the internet.15  The majority of international tourism arrivals, as measured by the UNWTO, occur 
overwhelmingly in the same continent where they or iginate;  i.e. intra-regional arrivals outnumber 
inter-continental arrivals.  Consequently, most African tourists remain in Africa, most Asians in Asia, 
etc.  Within all five regions of the world, over 70 pe r cent of tourists stayed within their continent of 
origin.  As could be expected, this was especially  true in Europe, given its statistical overweight. 
19. If visitor exports were divided between in tra-regional and long-haul, according to the 
UNWTO ratio of 75/25, it would mean that dome stic tourism accounted for 80 per cent of total 
tourism travel, while intra-regional travel (internati onal travel within the same continent) would reach 
15 per cent, with long-haul travel reaching only about 5 per cent of the total.  Overall, the article 
concluded that "tourism will indeed be one of the wa ys in which globalization will proceed in the near 
future.  However, it will not be its stronghold."16  Movements of people for travel and tourism will not 
easily go beyond their national borders;  when they do, tourists generally stay on their own continent, 
and only a small minority venture further.  In additi on, this last group will not only go to the most 
exotic destinations.  A sizeable share of long-ha ul travel will still be by business people shuttling 
between Europe, North America and East Asia. 
                                                      
14 Diana Barrowclough, Foreign Investment in Tourism an d Small Island Developing States , Tourism 
Economics , 2007, 13 (4), p. 617. 
15 Julio Aramberri, The future of tourism and glo balization: Some critical remarks , Futures (2008), 
doi:10.1016/j.futures.2008.11.015. 
16 Aramberri, p.9. S/C/W/298 
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  B. C
URRENT ECONOMIC ENVIRONMENT  
20. For many small developing countries, internati onal tourism is crucial:  it accounts for about 
80 per cent of total goods and services exports for Samoa, 70 per cent for the Maldives, 56 per cent 
for Sao Tome and Principe, and 43 per cent for Vanuatu.17  The importance of tourism is especially  
evident for LDCs:  the share of travel exports in  total services exports was 53 per cent in 2006, up 
from 47 per cent in 2000.18  As noted by the ILO, "The growing significance of tourism to developing 
countries is closely linked to the role of empl oyment in promoting the Millennium Development 
Goals (MDGs)".19 
21. According to estimates by the World Travel and Tourism Council (WTTC), an organization 
composed of executives from the tr avel and tourism industries, travel and tourism in 2009 employed 
nearly 220 million people worldwide (about 7.6 per cen t of total employment, or 1 in every 13 jobs), 
generating 9.4 per cent of global GDP (US$5, 474 bn).  Reflecting a deteriorating economic 
environment, this was a substantial decline from 2008 levels of over 225 million workers and a 9.6 
per cent share of global GDP.20   
22. While travel and tourism, despite occasi onal downturns, had seen a rapid rise over the 
previous decade, it suffered a marked  downturn in the second half of 2008.   By the end of that year, 
many countries were experiencing a contraction in travel and tourism demand, and global recession 
had an increasing impact on the industry’s perform ance – even in emerging markets.  The WTTC 
projected that the travel and tourism economy's GDP would contract by 3.5 per cent in 2009, and remain weak in 2010 with only marginal growth fo recast (0.25 per cent).  Its contribution to world 
GDP was predicted to fall further in the next two years to just over 9 per cent.  Job losses were also 
likely to be significant, with employment falling by around 10 million over the next two years – to 
around 215 million in 2010 – befo re subsequently recovering. 
23. Travel and tourism investment, as well as corporat e travel, were expected to be the hardest hit 
in the economic downturn, with the credit crunch causi ng firms to scrutinise all deferrable costs.  Real 
investment spending was forecast to decline by 5.25 per cent in 2009 and a further 1.25 per cent in 
2010.  Even greater falls were expected in corporat e travel over the next two years (of 7.25 per cent 
and 4.25 per cent, respectively).  Residents’ trav el and tourism spending was likely to be least 
affected, but nonetheless a decline of 3 per cent wa s projected for 2009, despite the substitution of 
domestic travel for some foreign trips. 
                                                     
 
17 World Tourism Organization, Tourism and Least Developed Countr ies:  A Sustainable Opportunity 
to Reduce Poverty,  2006, p.7.  
18 WTO document WT/COMTD/LDC/W/41/Rev.1, Market Access for Products and Services of Export 
Interest to Least-D eveloped Countries, 21 February 2008, p. 17. 
19 For least developed and island-developing countries, the ILO paper notes that tourism is one of the 
few options, if not the only one, for export-oriented development in the medium-term.  ILO Sectoral Activities 
Programme, Toolkit For Social Dialogue In The Tourism Industry , Geneva 2007, p.13. 
20 This and the following three paragraphs are based on WTTC, Travel and Tourism Economic Impact , 
Executive Summary 2009 (available online at http://www.wttc .org).  The measurement of the economic impact 
of travel and tourism developed by WTTC is ba sed on simulated Tourism Satellite Account (TSA) 
methodology.  The methodology is stated by WTTC to be analogous to that used for the production of national income accounts, followi ng the TSA concepts of containe d in the 2008 United Nations Recommended 
Methodological Framework (RMF).  The RMF’s Tourism Direct Gro ss Domestic Product (TDGDP) measure is 
considered broadly equivalent to the Travel & Tourism Direct Industry measures given by WTTC/Oxford Economics.  The WTTC Travel & Tourism Economy GDP data is produced by adding to the direct industry 
measure the value added created indirectly in the industry’s supply chain, plus investment and collective 
government and non-visitor export spending.  S/C/W/298 
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  24. Nevertheless, the WTTC expects prospects for travel and tourism to remain strong, led by 
renewed expansion in emerging countries – both as t ourism destinations and as an increasing source 
of international and domestic vis itors – together with the growing priority accorded by people in 
developed countries to leisure tourism.  Emerging economies, in particular, were expected to be 
engines of growth, boosting both international tr avel – with China alone set to provide over 100 
million visitors for other destinati ons.  Overall, the travel and tourism economy was forecast to grow 
by 4 per cent per annum in real terms between 2009 and 2019.  The cont ribution of travel and tourism 
to global GDP was expected to rise to 9.5 per cen t (US$10,478 bn) by 2019, and the contribution to 
employment was expected to rise to over 275 million jobs (8.4 per cent of total employment or 1 in 
every 11.8 jobs) by 2019. 
25. The UNWTO also expected international tourism to decline in 2009, by between 2 and 3 per 
cent.  For 2008 as a whole, international tourist arrivals were reported as 924 million, up 16 million 
over 2007, representing growth of 2 per cent.   The second half of 2008 saw growth come to a 
standstill, with the number of intern ational arrivals declining slightly  – a trend which was expected to 
continue in 2009.21   
26. The UNWTO has observed that, in general, the growth of internati onal tourism arrivals 
significantly outpaces growth of economic output as measured by Gross Domestic Product (GDP).  In years when world economic growth exceeds 4 per cen t, the growth of tourism volume tends to be 
higher.  However, when GDP growth falls below 2 per cent, tourism growth tends to be even lower.
22  
C. NEW ORIENTATIONS :  ECO- AND HEALTH TOURISM  
27. According to the UNWTO, sustainable tourism is  roughly defined as the meeting of the needs 
of present tourists and host regions, while protec ting and enhancing opportu nities for the future.  
"Sustainable development" has been defined as "a  sustained improvement in the fulfilment of the 
needs of a population without exerting a negative impact on the environment", and "ecotourism" defined as "responsible travel to natural areas which conserves the environment and improves the 
welfare of local people.
23  Although mass tourism has often been blamed for undermining the socio-
economic basis of "traditional" local life, positive effe cts of tourism can actually include the revival of 
local arts and handicrafts, as well as the use of tourism revenues to finance environmental protection. 
28. Strong motivations for environmental protection ex ist at both the industry and client levels.  
Many private tourism-related firms, notably hotels,  have instituted various types of environmental 
programmes.  In 1995, the WTTC, the UNWTO and the Earth Council released a joint environment 
plan, entitled Agenda 21 for the Travel and Tourism Indus try:  Towards Sustainable Development .  
The plan covers such issues as waste utilisation,  energy and non-renewable resource conservation, 
water management, local community involvement customer awareness and staff education and 
training.  Also included are mechanisms for the development of consulta tive arrangements between 
government, industry, local communities and environmental interests.24  An example of initiatives at 
the governmental level is the ECoNETT environmen tal communications network of the European 
Community. 
                                                      
21 UNWTO, International Tourism Challenged by Deteriorating World Economy , 27 January 2009 
(http://www.unwto.org/media/news/en/press_det.php?id=3481&idioma=E). 
22  UNWTO, Tourism and the world economy  (http://www.unwto.org/facts/eng/economy.htm). 
 23 Wolfgang Hein, Tourism and Sustainable Development , 1997, Hamburg, p.7.  It is important to note 
that even ecotourism typically involves  the use of fossil fuels and the emissi on of greenhouse gases as tourists  
travel to and from their destinations. 
24 WTTC (http://www.wttc.org/). S/C/W/298 
Page 10  
 
  29. With tourism accounting for some 5 per cent of carbon emissions, the UNWTO has stated 
that the sector is committed to respond to clim ate change by adaptation, mitigation and new 
technology. Better conservation, reduced congesti on, renewable energy, clean biofuels, climate 
proofing of buildings, as well as green consumer awareness and staff training are regarded as clear opportunities for hospitality and transport compan ies to move to a more sustainable economy.
25 
30. Definition issues, and a lack of statistical data, also affect the rapidly emerging field of health 
tourism.  Generally speaking, the health  and wellness cluster can be considered as  composed of three 
main sub-clusters:  medical tourism services, wellness and retirement.  Medical tourism includes hospitals and specialty clinics (cosmetology, eye and dental care and treatment);  the wellness group 
covers spas, holistic and alterna tive and traditional medicine;  wh ile the retirement sub-cluster’s 
stakeholders include retirement villages, nursing homes, property or community developers among 
others.
26 
31. As one observer notes, "It is indeed striking how very little is actually known on the extent to 
which health services are traded internationally.  Wh ile some anecdotes exist with regard to the trade 
of specific narrow sub-sectors in healthcare, ve ry modest knowledge exists on the magnitude of 
international trade in health services."27  According to an estimate, medi cal tourists in Thailand spent 
US$1.6 billion in 2003;  it has also been predicted that India will earn as much as US$2 billion from medical tourism by 2012. 
32. Economics is said to be effectively calibrating the rise of medical tourism.  Price differentials 
between most Asian states and more developed countries are considerable, and are evidently 
continuing to diverge.  For complex surgery, the diff erences can be very large:  in 2003, for example,  
a child in the United States with a hole in her heart was faced with a potential bill of around 
US$70,000, but the operation was carried out in Bangalo re, India at a cost equivalent to US$4,400.  
Some Japanese companies are said to send thei r employees to Thailand and Singapore for annual 
physical examinations, as the savings on medical fees and high-quality medical care make the airfare 
secondary.  For provincial Japanese companies the cost is  apparently little more that that of travelling 
to Tokyo, with the medical reports written in  Japanese and images sent electronically to Japan.
28 
33. While economic benefits are rega rded as central to medical tourism, they are not the only 
factors.  Waiting lists for non-essential surgery such as knee reconstructions are said to be as long as 
18 months in the UK and other countries.  In India the whole procedure can be done in under a week 
                                                      
25 UNWTO, Tourism and the G20 Summit  (available online at http://www.unwto.org/G20.php?lang 
=E).  UNWTO information on sustainable development is available online at (http ://www.unwto.org/ frameset/ 
frame_sustainable.html).  UNWTO Assistant Secretary-Ge neral and Spokesperson, Geoffrey Lipman, has stated 
“The industry – transportation; hospitality and travel serv ices - is increasingly committed to climate response.  
Our carbon emissions at some 5 per cent of the total are significant but manageable, with adaptation and new 
technology.  Poor countries, who need more visitors for their development agenda, will also need special 
financial support to help them make the changes necessa ry to become climate neutra l.  Investment in Green 
Tourism – climate proofing hotels, clean biofuels for transport and widespread education/training programmes 
will pay massive dividends and send positive sign als to consumers around the world.”  UNWTO, Placing 
Tourism and Travel in Global Stimulus Packages and the Green Economy  (available online at http://www. 
unwto.org/media/news/en/press_det.php?id=3841&idioma=E). 
26 GTZ, Global Health and International Negotiations , Health Brief, 2009. 
27 Lior Herman, Assessing International Trade in Healthcare Services , ECIPE Working Paper 
No. 03/2009.  Another author concurs, stating "Measures of the flows of medical tourists vary enormously, partly 
because this defies easy categorisation (either in term s of patients and/or accompan ying family members etc.) 
and partly because no statistics distinguish it." John Connell, Medical tourism: Sea, sun, sand and ... surgery , 
Tourism Management 27 (2006) 1093–1100. 
28 Main source of this and the following three paragraphs is Connell, Medical tourism: Sea, sun, sand 
and ... surgery , Tourism Management 27 (2006) 1093–1100.  S/C/W/298 
 Page 11 
 
 
  and patients sent home after a further 10 days.  Such  surgery, regarded as nonessential or low priority 
in certain countries, might be necessary for certain  forms of employment, and hence worth travelling 
for.  Since for a significant proportion of patients there may be a lengthy period of recuperation, the rewards to the tourism industry, and especi ally the hotel sector, are considerable. 
34. Medical tourism is predicted to increase even fa ster in the future, as medical care continues to 
be increasingly privatised and cost differentials re main in place.  Western insurance companies could 
encourage overseas treatment to reduce their own cost s.  The number of countries seeking to develop 
medical tourism is said to continue to grow rapi dly;  among the countries already considered to be 
hubs of health tourism are India, Thailand, Co sta Rica, Columbia, Hungary, Poland, Lithuania, 
Malaysia, Jordan and Tunisia.  The largest inte rnational private medical service group in India, 
Apollo, had 37 hospitals in India in 2004, partnershi ps in hospitals in Kuwait, Sri Lanka and Nigeria, 
and plans for others in Dubai, Bangladesh, Paki stan, Tanzania, Ghana, Singapore, Philippines, 
London and Chicago as privatised corporations grew and international linkages intensified.
29 
35. It must be noted that the expansion of private sector medical services, including medical 
tourism, may be at some cost to the public sector, where patients have very li mited ability to pay, if 
skilled health workers move out of that sector.  Ethical issues could become increasingly significant, 
both in terms of equity and in the more competitiv e involvement of the market in medical care.  
IV. REGULATORY STRUCTURE AND RELEVANT TRADE RESTRICTIONS  
36. In 2004, the Tourism Working Group establishe d by the Asia Pacific Economic Cooperation 
(APEC) published a study entitled, APEC Tourism Impediments Study Stage 2 , which includes case 
studies on Canada, Chile, Indonesia, Peru and th e Philippines.  The conclusions listed three 
particularly challenging impediments to the long- term growth of international tourism:   
(a) The relatively low profile tourism has in most political environments.  The complex 
nature of tourism means that numerous  government and even non-governmental 
organizations have impacts on the health of  the tourism sector. However, tourism is 
often not a recognized area of concern for these organizations, so their actions can 
easily and negatively affect the hea lth of tourism unintentionally;   
(b) Tourism is highly fragmented, with tourism enterprises belonging to a number of very 
different industries such as transportation, accommodation, food services, travel trade (tour operators and travel agencies), recreation and entertainment.  It is difficult, if not 
impossible, for the so-called tourism industry to speak with one voice to government in an effort to articulate the needs of the private sector;  and 
(c) Tourism is highly vulnerable to external forces, including acts of terrorism, economic 
trends, natural disasters, weather and c limate, and developments in competing 
destinations.
30   
                                                      
29 With regard to supply-side options for developing  countries to increase participation in medical 
tourism, one article makes the following suggestio ns:  obtaining hospital accreditation from the Joint 
Commission International;  and obtaining internationally recognized accredition for medical professionals, such as the United States Medical Licensing Exam  (Aaditya Matoo and Randeep Rathindran, Does Health Insurance 
Impede Trade in Health Care Services , World Bank Policy Research Working Paper 3667, July 2005, pp. 23-24. 
30 APEC, APEC Tourism Impediments Study Stage 2  (TWG/01/2004), D ecember 2004, p.100) 
(available online at http://www.apec.org/apec/publications/all_publications/tourism_working_group.html).  In 
1990, the OECD published an Inventory of Obstacles to International Tourism  in the OECD area.  The study 
concluded that, by comparison with other service sectors, the tourism sector in OECD countries was S/C/W/298 
Page 12  
 
  37. Typically issued in response to natural disasters, health crises or terrorism, travel warnings 
can be devastating for tourism.  Consequently, the UNWTO in 2005 adopted the Guidelines On 
Travel Advisories, which address the procedures used when formulating and administering travel 
warnings, emphasising the need for transparency, accuracy, etc.
31  Growth of the tourism sector, 
including the increased movement of natural pe rsons, has also led to increased demand for the 
development of international standards.  The UNWTO has worked to develop a range of quality 
standards, commencing with those to be applie d to tourism destinations.  The International 
Organization for Standardization (ISO) has also formed a working group to examine standards on 
terminology for hotel accommodations.32 
38. While not frequently  documented, especially with respect to  developing country destinations, 
other possible trade barriers include anti-competitive practices by airlines or tour operators.  A recent 
OECD report has noted that anticompetitive prac tices in tourism and related sectors can be a 
bottleneck to the development of the industry.  Su ch practices can arise at different stages of the 
tourism value-added chain, according to the type  of service supplied. Preliminary research has 
identified some key anticompetitive m easures affecting trade in tourism, including cartels, abuse of 
dominant position and of buying power, and atte mpts to monopolise.  These practices tend to 
undermine the inherently positiv e economic effects of tourism.33 
39. The OECD report also notes that the vertical relationship between holiday package providers, 
retailers and tourism service suppliers can be an  important source of anticompetitive behaviour.  
International tour operators act as the wholesal ers of tourism products, such as transport, 
accommodation or organised excursions, provided in  destination countries by local suppliers, while 
travel agents in origin markets act as the retailers.  The tour operators segment of the industry is 
dominated by a few large international firms and has featured increasing vertical integration in recent 
years. Other segments of the industry, especially  local suppliers such as independent hotels, 
restaurants and tourist guides, are characterised by a large number of SMEs.34  Scope for 
anticompetitive practices may also arise in related i ndustries.  For example, large airlines have in 
some cases been accused of abusing their market  power to the detriment of local suppliers.35 
40. As earlier noted by UNCTAD, developing county tourism exports are hindered by the long 
distances of many developing countries from the ma in tourist-generating centres, and the high air-
fares caused by low air traffic density.  Protecti onist aviation policies, stated the WTTC, severely 
constrain the development of tourism.  According to a WTTC official, "Aviation protectionism pulls 
customers away from the whole travel and tourism chain – from hotels, resorts, car rentals, computer 
reservations systems, entertainment, cultural a ttractions and all the rest of our industry".36  A WTTC 
                                                                                                                                                                     
"remarkably free from protectionist and discriminatory practices".  See World Tourism Organization, Seminar 
on GATS Implications for Tourism , 1995, p.42. 
31 Adopted by resolution A/RES/508(XVI) at the sixt eenth session of the General Assembly of the 
World Tourism Organization, Dakar, Senegal, 28 November – 2 December 2005 (available online at http:// 
www.unwto.org/rcm/guidelines/advisories.php?lang=E).  See also the UNWTO website, Ethics in Tourism  
(http://www.unwto.org/code_ethics/eng/global.htm).  The S ecretariat is not aware of sources listing all travel 
warnings currently in effect.   
32 See UNWTO website, WTO Position on Tourism Standards  (http://www.unwto.org/quality/ 
std/en/std_02_1.php?op=1&subop=3).  
33 OECD, Trade Policy Working Paper No. 57, Services Trade Liberalization and Tourism 
Development, by Massimo Geloso Grosso, Molly Lesher  and Enrico Pinali, 2007, pp. 25-27.  
34 As noted by another OECD tourism study, "In developing countries and less 'industrialised' tourism 
destinations ..., SMEs still predominate in th e supply of tourism services and facilities."  Tourism in OECD 
Countries 2008: Trends And Policies , OECD 2008, p. 31. 
35 OECD, Services Trade Liberalizatio n and Tourism Development, p. 26.  
36 UNWTO, Seminar on GATS Implications for Tourism , 1995, p.36.  See also Second Review of the 
Air Transport Annex, Developments in the Air Transport Sector  (Part One), Note by the Secretariat, WTO  S/C/W/298 
 Page 13 
 
 
  report strongly promoted aviation liberalization, notin g that, in most countries, the gross receipts from 
hotels and other tourist activities are substantially gr eater than those of the national airline, and the 
"leakage" of foreign exchange earni ngs is proportionately much less.37 
41. In the case of Africa, a 2008 joint report by the United Nations Economic Commission for 
Africa and the African Union, Africa and the Monterrey Consensu s: Tracking Performance and 
Progress, has emphasized that one of the major barriers to tourism investment is  the lack of essential 
infrastructure:     
 Africa, though recognized internationally for the quality of its resource 
endowment for tourism, has not yet manage d to realize its full potential. Indeed, 
according to the World Tourism Organization (UNWTO), Africa as a whole attracted 
just fewer than 45.5 million of the 802 million world tourist arrivals. In terms of 
receipts, the continent accounted for {US}$21.6 billion of the total {US}$678 billion international tourism receipts in 2005. On ly four African countries (Egypt, South 
Africa, Morocco and Tunisia) are listed in the top 50 worldwide destinations in terms of both arrivals and receipts. 
 There is an increasing recognition that tourism contributes to job creation and 
poverty reduction. The main drivers for tourism growth include global economic 
prosperity and the improvement of transport services such as development of low-cost airlines and upgrading transport in frastructure. Despite tourism’s growing 
importance as a source of foreign exchange earnings for African countries, the industry remains underdeveloped mostly because of poor tourism infrastructure, 
inadequate information and marketing on the attractions, strict entry visas require-
ments, high airport taxes, poor destinati on management by local tour operators and 
high health risks.
38 
42. Another important observation is that, while near ly all countries have policies to attract FDI, 
fewer countries have put in place the policies that will help them to make the most of these 
opportunities.  Transnational corporations can potentially help to catalyse new employment 
opportunities at many points throughout the long and diverse tourism production chain; however, 
these will be better achieved if there is in place the appropriate flanking policies at the domestic level, 
including, for example, training and skills promoti on; helping local agricultural producers to scale-up 
the quality and reliability of their produce; and bo osting domestic entrepreneurs’ abilities to build 
domestic hotels and provide other services such as transport, guiding, creative industries and cultural 
services. Consequently, "As much effort needs to be  directed towards beefing up the domestic side of 
the tourism equation as goes into attracting the foreign side".39 
                                                                                                                                                                     
document S/C/W/270,  18 July 2006 (available online at http ://www.wto.org/english /tratop_e/serv_e/ 
transport_e/review2_e.htm). 
37 World Travel and Tourism Council, Air Transport and Freer World Trade , internet version 
(http://www.wttc.org/).  Import leakage for small national airlines in developing countries is typically 65-70 per 
cent of total operating costs.  A World Tourism Organization study, Aviation and Tourism Policies , stated that 
some countries were spending more money protecting their domestic carriers than they generated through their 
entire travel and tourism industry. 
38 UNECA/AU Economic Report on Africa  2008 , p. 60 .  Available online at  http://www.uneca.org/ 
era2008/.  
39 Barrowclough, Foreign Investment in Tourism an d Small Island Developing States , pp. 634-635. S/C/W/298 
Page 14  
 
  V. NEGOTIATIONS ON TOURISM SERVICES AND EXISTING COMMITMENTS 
 UNDER THE GATS 
43. In the current GATS negotiations, the most recen t formal paper specifically on tourism (as of 
publication of this Note) was a 2004 communication entitled, Review of Progress in Negotiations, 
Including Pursuant to Paragraph 15 of the Gu idelines for Negotiations -- Tourism Services .
40  
Tourism was discussed in a Special Session of the Council for Trade in Services meeting on 15 
November and 6 December, 2007, in the context of reviewing the status of the plurilateral 
negotiations.41  Tourism has also received occasional mention in the context of the review of the 
GATS Air Transport Annex. 
44. As of May 2009, 133 WTO Members have made  GATS commitments in Tourism and Travel 
Related Services as defined under Section 9 of the Services Sectoral Classification List  (Annex Table 
VII).42  This level is greater than for any other sector, and indicates the desire of most Members to 
expand their tourism sectors and to increase inwa rd FDI as part of efforts to promote economic 
growth.  Nonetheless, the existing level of GATS commitments does not imply the full liberalization 
of international trade in tourism services, especi ally when tourism-characteristic services are 
considered (Annex Table II). 
45. The current level of GATS commitments by both mode of supply and by sub-sector varies 
widely for Tourism and Travel Related Services  (i.e. Section 9 of the Services Sectoral Classification 
List).  The percentage of Members making no commitments ("Unbound") is significantly higher for 
Mode 1 (cross-border supply) than for other modes,  posing potential difficulties, especially for the 
supply of  travel agency and tour operators servi ces via e-commerce, a significant export opportunity 
for many developing countries.  By sub-sector, all those WTO Members with tourism commitments 
included commitments on Hotels and rest aurants (sub-sector A) (Annex Table VII ), with a 
significantly smaller number (110) making commitments under Travel agencies and tour operators services (sub-sector B).  Only about one-half (67) of Members with tourism commitments made them under Tourist guides services (sub-sector C), and only 17 made commitments for the "Other" category 
(sub-sector D).
43  A small number of WTO Members (8), have made no GATS tourism commitments. 
46. Among the most common restrictions appearing in  schedules, the cross-border supply of hotel 
and restaurant services, as noted above, is ofte n indicated as unbound due to lack of technical 
feasibility.  An economic needs test is frequently required for opening new bars or restaurants;  citizenship requirements are sometimes imposed fo r liquor licenses and tourist guide licenses.  In 
regard to commercial presence, market access is of ten guaranteed only to hotels in excess of a certain 
size, e.g. 50 or 100 rooms, with access for hotels below that size subject to an economic needs test.  In 
some cases licences are required for commercial presence, and in other cases commercial presence is subject to foreign equity ceilings. 
                                                     
 
40 WTO document TN/S/W/23, 29 September 2004.  The paper was submitted by the delegations of 
Brazil, Colombia, Dominican Republic, El Salvador, India, Indonesia, Nicaragua, the Philippines and Thailand. 
41 WTO document TN/S/M/28, 5 May 2008.  An informal paper on the tourism plurilateral negotiations 
was circulated for that meeting, as JOB(07)/202, 5 December 2007. 
42 The schedules of the 15 most recent ECU Members are counted separately, as they have not yet been 
formally integrated into the GATS schedule of the Eu ropean Community and its Me mber States.  Aruba, the 
Netherlands Antilles and New Caledonia also have  schedules, but are not counted separately. 
43 An MFN exemption for tourism has been taken by Jordan in regard to travel agency and tour 
operator services, by Lithuania in regard to tourist guides, by Mexico in regard to tax deductions for individuals 
attending business conventions, and by Nepal in regard to currency allocations.  Under the Aviation sub-
category in the Transport s ector, Members have listed a significant nu mber of MFN exemptions for computer 
reservation systems (CRS);  exemptions are also in place for a number of other aviation-related measures.  In 
addition, a substantial number of Members have listed general MFN exemptions which may have an effect on 
the Tourism sector, most notably preferen tial access measures for natural persons.  S/C/W/298 
 Page 15 
 
 
  VI. SOURCES OF ADDITIONAL INFORMATION 
47. Relevant sources of additional information also include the follo wing Internet sites:44 
- Air Transport Association (http://www.air-transport.org/) 
- Caribbean Tourism Organization (http://www.onecaribbean.org/) 
- Destination Marketing Associa tion International (http://www. 
destinationmarketing. org/) 
- International Air Transport Association (http://www.iata.org/) 
- International Civil Aviation Organization (http://www.icao.org/) 
- International Hotel & Restaurant A ssociation  (http://www.ih-ra.com/) 
- Indian Ocean Tourism Organisation (http://www.iotooman.com/) 
- International Federation of In formation Technology & Tourism 
(http://www.ifitt.org/) 
- Overseas Development Institute (http ://www.odi.org.uk/programmes/tourism/ 
default.asp) 
- Pacific Asia Travel Association (http://www.pata.org/) 
- Tourism Industries Network (http://www.tinet.ita.doc.gov/) 
- United Nations Industry and Environm ent Programme (http://www.unep.org/) 
- World Association of Travel Agencies (http://www.wata.net/) 
- World Economic Forum (http://www.weforum.org/en/initiatives/gcp/ 
TravelandTourismReport/index.htm) 
- World Tourism Organization (http://www.unwto.org/) 
 
 
_______________ 
 
 
                                                      
44 Source for many of the items on this list is the WTTC's Internet site (http://www.wttc.org/). S/C/W/298 
Page 16  
 
  ANNEX  
  
Table I:  Classification of International  Travellers  
 
 Travellers Not included in 
tourism statisics Border 
Workers 
Temporary 
immigrants6 
Permanent  
immigrants6 
 
Nomads6 
Transit 
Passengers7 
 
Refugees8 
Members of 
the armed 
forces9 
Representation 
of consulates9 
 
Diplomats9 Included in  
tourism statistics 
Visitors 
 
Tourists1  
Same-day 
visitors 
Non-
residents 
(foreigners) Nationals 
residing 
abroad Crew 
members 
(non-
residents)4  
Day 
Visitors2 
Crews5 Cruise 
passen-
gers3 Main 
purpose 
of visit Leisure, 
recreation, 
holidays 
Visiting 
friends & 
relatives 
Business & 
professional 
Health 
treatment 
Religion & 
pilgrimages 
Others 
 
 
 
 
 1Visitors who spend at least one night in the country visited, but less than one year. 
 2Visitors who arrive and leave the same day for leisure, recreation and holidays;  visiting friends and 
relatives; business professional;  health treatment,  re ligion, pilgrimages and other tourism purposes, including 
transit day visitors en route to or  from their destination countries. 
 3Persons who arrive in a country aboard cruise ships [as defined by the International Maritime 
Organization (IMO), 1965] and who spend the night aboard ship even when disembarking for one or more day 
visits. 
 4Foreign air or ship crews docked or in lay over and who use the accommodation establishments of the 
country visited. 
 5Crews who are not residents of the country visited and who stay in the country for the day. 
 6As defined by the United Nations High Commissioner for Refugees, 1967. 
 7Who do not leave the transit area of the airport or the port, including transfer between airports or ports. 
 8As defined by the United Nations High Commissioner for Refugees, 1967. 
 9When they travel from their country of origin to the duty station and vice-versa (including household 
servants and dependants accompanying or joining them). 
 Source :  World Tourism Organization as found in OECD, Tourism Policy and International Tourism in OECD 
Countries . (OCDE/GD(97)173, Paris, 1997.  S/C/W/298 
 Page 17 
 
 
  Table II:   The Cluster of Tourism Industries    
 
Attribution of Tourism Characteristic Services to  the services sectoral cla ssification used in the 
Uruguay Round .  (Services Sectoral Classification List, WTO document MTN.GNS/W/120)  
 
SECTOR 1 - BUSINESS SERVICES  
 
D. REAL ESTATE SERVICES 
 
CPC SECTION B  
822 b. on a fee or contract basis 
 Support services to time share activities 
 
E. RENTAL / LEASING SERVICES WITHOUT OPERATORS 
 
CPC SECTION B  
83103 a. Relating to ships  
 Leasing or rental services  concerning passenger vessels 
without operator 
83104 b. Relating to aircraft 
 Leasing or rental services concerning passenger aircraft 
without operator 
83101-2, 83105 c. Relating to other transport equipment 
 Leasing or rentals services concerning cars and light vans 
without operator 
 Leasing or rental services concerning campers/motor homes 
without operator 
83106-9 d. Relating to other machinery and equipment 
 Non-motorized land transport equipment leasi ng or rental 
services 
 Winter sports equipment l easing or rental services 
 Water sports and beach equipmen t leasing or rental services 
 Camping equipment leasi ng or rental services 
 Saddle horse leasing or rental services  Photographic camera  rental services 
 
F. OTHER BUSINESS SERVICES 
 
CPC SECTION B  
881 f. Services incidental to agriculture, hunt ing and forestry 
 Hunting licence services 
882 g. Services inci dental to fishing 
 Fishing licence services 
87909 Convention services 
 Trade fair and exhibition organization services 
 
 SECTOR 7 - FINANCIAL SERVICES
 
 
A. ALL INSURANCE AND INSURANCE RELATED SERVICES  
 
CPC SECTION B  
812 a. Life, accident and he alth insuran ce services 
 Travel life insurance services 
 Travel accident insurance services 
 Travel health insurance services 
8129 Non-life insurance related services 
 Passenger’s aircraft of own use insurance services 
 Passenger’s vessel of own use insurance services 
 Travel insurance services S/C/W/298 
Page 18  
 
   
B. BANKING AND OTHER FINANCIAL SERVICES 
 
CPC SECTION B  
8113 b. Lending of all types, incl ., inter alia, consumer credit, 
mortgage credit, factoring a nd financing of commercial 
transaction 
 Travel card services 
 Travel loan services 
81333 Foreign exchange 
 Foreign exchange services 
 
 
SECTOR 9 - TOURISM AND TRAVEL RELATED SERVICES  
 
A. HOTELS AND RESTAURANTS (INCL. CATERING) 
 
CPC SECTION B  
641-643 Hotels and restaurants 
 Hotel and motel lodging services 
 Holiday center and holiday home services 
 Letting services of furnished accommodation 
 Youth hostel services 
 Children’s training and holiday camp services  Camping and caravanning site services 
 Sleeping-car and similar services in other transport media; 
hall residence of students 
 Meal serving services with full restaurant services 
 Meal serving services in self-service facilities 
 Other food serving services  Beverage serving services fo r consumption on the premises 
 
B. TRAVEL AGENCIES AND TOUR OPERATOR SERVICES 
 
CPC SECTION B  
7471 Travel agencies and tour operator services 
 Travel agency services 
 Tour operator services 
 
C. TOURIST GUIDES SERVICES 
 
CPC SECTION B  
7472 Tourist guid es services 
 Sightseeing excursion services 
 Sightseeing services, aircraft or helicopter 
 Tourist guide services 
 Guide services (mountain, hunting, fishing) 
 
D. OTHER  
 
CPC SECTION B  
 Tourist information services (including travel information, 
advice and planning services provided by tourist offices; accommodation reservation services; and airline, train, bus 
and other reservation services relating to travel) 
  S/C/W/298 
 Page 19 
 
 
   
SECTOR 10 - RECREATIONAL, CULTURAL AND SPORTING SERVICES  
 
A. ENTERTAIMENT SERVICES (including theatre, live bands and circus services) 
 
CPC SECTION B  
9619 Entertainment services 
 Performing arts facility operation services 
 Services of performing artists 
 Theme park services  Amusement park services 
 Fair and carnival services 
 Casino services  Slot machine services 
 Escort services 
 
C. LIBRARIES, ARCHIVES, MUSEUMS AND OTHER CULTURAL SERVICES 
 
CPC SECTION B  
963 Libraries, archives, museums and other cultural services 
 Museum services except for hi storical sites and buildings  
 Preservation services of historical sites and buildings 
 Botanical and zoological garden services  Nature reserve services including wildlife preservation 
services 
 
SPORTING AND OTHER RECREATIONAL SERVICES 
 
CPC SECTION B  
964 Sporting and recreational services 
 Sports and recreational s ports event promotion and 
organization services 
 Golf course services  Ski fields operation services  
 Race circuit 
 Recreation park and beach services 
 Risk sport and adventure 
 Spa services 
 
 
SECTOR 11 - TRANSPORT SERVICES
 
 
A. MARITIME TRANSPORT SERVICES 
 
CPC SECTION B  
7211 a. Passenger transportation  
 Coastal and transoceanic water transport services for 
passengers by ferries 
 Other coastal and transoceanic scheduled water transport 
services of passengers  
 Other coastal and transoceanic non-scheduled water 
transport services of passengers 
 Passenger services on freight vessels  
7213 c. Rental of vessels with crew 
 Rental services of passenge r vessels for coastal and 
transoceanic water transport with operator 
8868 d. Maintenance and repair of vessels 
 Maintenance and repair services of leisure vessels of own 
use 
745 f. Supporting services for maritime transport 
 Port and waterway services 
 S/C/W/298 
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  B. INTERNAL WATERWAYS TRANSPORT 
 
CPC SECTION B  
7221 a. Passenger transportation  
 Inland water transport servic es of passengers by ferries 
 Cruise ship services 
 Cruise services 
7223 c. Rental of vessels with crew 
 Rental services of inland water passenger vessels with 
operator 
 
C. AIR TRANSPORT SERVICES 
 
CPC SECTION B  
731 a. Passenger transportation 
 Scheduled air transport services of passengers 
 Non-scheduled air transport services of passengers 
734 c. Rental of aircraft with crew 
 Rental services of aircraft  with operator 
8868 d. Maintenance and repair of aircraft 
 Maintenance and repair services of leisure aircraft of own 
use 
746 e. Supporting services  for air transport 
 Parking of passenger terminal transport 
 Airport operation services (excl. cargo handling) 
 Other supporting services fo r air or space transport 
 
E.    RAIL TRANSPORT SERVICES  
 
CPC SECTION B  
7111 a. Passenger transportation 
 Scheduled rail services 
 Non-scheduled rail services 
743 e. Supporting services for rail transport services 
 Supporting services for rail transport 
 
F.    ROAD TRANSPORT SERVICES 
 
CPC SECTION B  
7121-2 a. Passenger transportation  
 Interurban scheduled road transport services of passengers 
 Interurban special purpose scheduled road transport services 
of passengers 
 Scheduled ski-hills services 
 Scheduled passenger services 
7124 c. Rental of commercia l vehicles with operator 
 Taxi services 
 Rental services of pa ssenger cars with operator 
 Rental services of buses  and coaches with operator 
6112 / 8867 d. Maintenance and repair of road transport equipment 
 Maintenance and repair services of trailers, semi-trailers and 
other motor vehicles n.e.c. 
744 e. Supporting services for road transport services 
 Bus station services 
 
H.    SERVICES AUXILIARY TO ALL MODES OF TRANSPORT 
 
CPC SECTION B  
749 d. Other  
 Vessel fuelling services 
 Maintenance and upkeep services to private recreation 
passenger services 
  S/C/W/298 
 Page 21 
 
 
   
I.    OTHER TRANSPORT SERVICES 
 
CPC SECTION B  
 
 Navigational aid services 
 
 SECTOR 12 - OTHER SERVICES NOT INCLUDED ELSEWHERE
 
 
CPC SECTION B  
 Passport issuing services 
 Visa issuing services 
 
Source :  Communication from the Dominican Republic, El Salvador, and Honduras – The Cluster of Tourism 
Industries   (WTO document S/CSS/W/19 , 5 December 2000, pp. 4-8.). 
 
 
 S/C/W/298 
Page 22  
 
  Table III:   International Tourist Arrivals by Sub-Region, 1990-2007 
 
 International To urist Arrivals 
(million) Market 
share 
(%) Change 
(%) 
 Average 
annual 
growth 
(%) 
 1990 1995 2000 2005 2006 2007∗ 2007∗ 06/ 
05 07∗/ 
06 00-07∗ 
           
World 436 536 683 803 847 903 100 5.5 6.6 4.1 
           
Europe 262.6 311.3 393.5 440.3 462.2 484.4 53.6 5.0 4.8 3.0 
 Northern Europe 28.6 35.8 43.7 52.8 56.4 57.6 6.4 6.8 2.2 4.0 
 Western Europe 108.6 112.2 139.7 142.4 149.5 154.9 17.1 5.0 3.6 1.5 
 Central/Eastern 
  Europe 31.5 60.6 69.4 87.8 91.5 95.6 10.6 4.2 4.5 4.7 
 Southern/ 
  Mediter. Europe 93.9 102.7 140.8 157.3 164.8 176.2 19.5 4.7 7.0 3.3 
           
Asia and Pacific 55.8 81.8 109.3 154.6 167.0 184.3 20.4 8.0 10.4 7.8 
 North East Asia 26.4 41.3 58.3 87.5 94.3 104.2 11.5 7.7 10.6 8.6 
 South East Asia 21.1 28.2 35.6 48.5 53.1 59.6 6.6 9.4 12.2 7.6 
 Oceania 5.2 8.1 9.2 10.5 10.5 10.7 1.2 0.4 1.7 2.2 
 South Asia 3.2 4.2 6.1 8.1 9.1 9.8 1.1 11.8 8.2 7.1 
           
Americas 92.8 109.0 128.2 133.4 135.8 142.5 15.8 1.9 4.9 1.5 
 North America 71.7 80.7 91.5 89.9 90.6 95.3 10.6 0.8 5.2 0.6 
 Caribbean 11.4 14.0 17.1 18.8 19.4 19.5 2.2 3.4 0.1 1.9 
 Central America 1.9 2.6 4.3 6.4 7.1 7.7 0.9 9.9 9.6 8.6 
 South America 7.7 11.7 15.3 18.2 18.7 19.9 2.2 2.8 6.4 3.9 
           
Africa 15.2 20.1 27.9 37.3 41.4 44.4 4.9 11.0 7.4 6.9 
 North Africa 8.4 7.3 10.2 13.9 15.1 16.3 1.8 8.4 7.9 6.8 
 Subsaharan   
 Africa 6.8 12.8 17.7 23.3 26.3 28.2 3.1 12.6 7.1 6.9 
           
Middle East 9.6 13.7 24.4 37.8 40.9 47.6 5.3 8.2 16.4 10.0 
           
∗ Provisional. 
 
Source : World Tourism Organization (UNWTO)       
 (Data as collected by UNWTO, 2008).  S/C/W/298 
 Page 23 
 
 
  Table IV:   International Tourism Receipts by Sub-Region, 2006-2007 
 
  
Share 
(%)  
Receipts 
                Total  (US$ billion)                      Per arrival 
 2007 2006 2007∗ 2007 
     
World 100 742 856 950 
     
Europe 50.6 376.9 433.4 890 
 Northern Europe 8.1 60.3 69.7 1,210 
 Western Europe 17.4 131.6 149.1 960 
 Central/Eastern Europe 5.6 38.2 48.3 510 
 Southern/Mediter. Eur. 19.4 146.9 166.4 940 
     
Asia and Pacific 22.1 156.5 188.9 1,020 
 North East Asia 10.4 75.2 89.2 860 
 South East Asia 6.3 43.6 54.0 910 
 Oceania 3.8 26 .6 32.3 3,020 
 South Asia 1.6 11.2 13.4 1,370 
     
Americas 20.0 154.1 171.1 1,200 
 North America 14.6 112.5 125.1 1,310 
 Caribbean 2.6 21.7 22.6 1,160 
 Central America 0.7 5.5 6.3 810 
 South America 2.0 14.4 17.2 860 
     
Africa 3.3 24.6 28.3 640 
 North Africa 1.2 8.7 10.3 640 
 Subsaharan Africa 2.1 15.9 18.0 640 
     
     
Middle East 4.0 29.9 34.2 720 
     
∗ Provisional. 
 
Source :  World Tourism Organization (UNWTO)          
              (Data as collected by  UNWTO, 2008). 
 S/C/W/298 
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  Table V(a):   International Tourist Arrivals by Country, 2006-2007 
 
 Million Change (%)             Rank 
Series1 2006 2007* 06/05 07*/06 
1 France TF 78.9 81.9 3.9 3.8 
2 Spain TF 58.2 59.2 4.1 1.7 
3 United States TF 51.0 56.0 3.6 9.8 
4 China TF 49.9 54.7 6.6 9.6 
5 Italy TF 41.1 43.7 12.4 6.3 
6 United Kingdom TF 30.7 30.7 9.3 0.1 
7 Germany TCE 23.5 24.4 10.1 3.9 
8 Ukraine TF 18.9 23.1 7.4 22.1 
9 Turkey TF 18.9 22.2 -6.7 17.6 
10 Mexico TF 21.4 21.4 -2.6 0.3 
∗ Provisional. 
1 Series =  International Tourist Arrivals:  TF: Internatio nal tourist arrivals at frontiers (excluding same-day 
visitors);  VF:  International visitor arrivals at frontiers  (tourists and same-day visitors);  THS:  International 
tourist arrivals at hotels and similar establishments;  TCE:  International tourist arrivals at collective tourism 
establishments. 
Source :  World Tourism Organization (UNWTO) 
 (Data as collected by UNWTO, 2008). 
 
 
 
 
Table V(b):    International Tourism Receipts by Country, 2006-2007 
 
US$ National currencies 
Billion Change (%) Change (%)  
            Rank 
2006 2007* 06/05 07*/06 06/05 07*/06 
1 United States 85.7 96.7 4.8 12.8 4.8 12.8 
2 Spain 51.1 57.8 6.6 13.1 5.6 3.6 
3 France 46.3 54.2 5.3 17.0 4.3 7.2 
4 Italy 38.1 42.7 7.7 11.9 6.7 2.5 
5 China 33.9 41.9 15.9 23.5 15.9 23.5 
6 United Kingdom 33.7 37.6 9.8 11.6 8.5 2.7 
7 Germany 32.8 36.0 12.4 9.8 11.4 0.6 
8 Australia 17.8 22.2 5.8 24.7 7.3 12.2 
9 Austria 16.6 18.9 3.7 13.5 2.7 4.0 
10 Turkey 16.9 18.5 -7.2 9.7 -7.2 9.7 
∗ Provisional. 
 
Source :  World Tourism Organization (UNWTO) 
 (Data as collected by UNWTO, 2008). 
  S/C/W/298 
 Page 25 
 
 
  Table VI:   Outbound Tourism, 2006-2007 
 
 
            Rank International Tourism 
Expenditure (US$ billion) 
 Market 
share (%) Population 
2007 Expenditure 
per capita 
  2006 2007∗ 2007∗ (million) (US$) 
       
 World 742 856 100 6,586 130 
       
1 Germany 73.9 82.9 9.7 82 1,008 
2 United States 72.1 76.2 8.9 302 252 
3 United Kingdom 63.1 72.3 8.5 61 1,189 
4 France 31.2 36.7 4.3 62 595 
5 China 24.3 29.8 3.5 1,321 23 
6 Italy 23.1 27.3 3.2 59 464 
7 Japan 26.9 26.5 3.1 128 207 
8 Canada 20.5 24.8 2.9 33 755 
9 Russian Federation 18.2 22.3 2.6 142 157 
10 Korea, Republic of 18.9 20.9 2.4 48 431 
∗ Provisional. 
 
Source :  World Tourism Organization (UNWTO)   
 (Data as collected by UNWTO, 2008). 
 S/C/W/298 
Page 26  
 
  Table VII:    Summary of GATS Tourism Commitments under Section 9 of the Services Sectoral 
Classification List  
 
COUNTRIES 09.A. 09.B.  09.C. 09.D TOTAL 
Albania X X X  3 
Angola X    1 
Antigua and Barbuda X    1 
Argentina X X X X 4 
Armenia X X X  3 
Australia X X X  3 
Austria X X X  3 
Bangladesh X    1 
Benin X    1 
Bolivia X X   2 
Botswana X X   2 
Brazil X    1 
Bulgaria X X   2 
Burkina Faso X X   2 
Burundi X X X  3 
Cambodia X X X  3 
Cameroon X X   2 
Canada X X   2 
Cape Verde X X X  3 
Central African Republic X X X X 4 
Chad X X   2 
Chile X X X  3 
China X X   2 
Colombia X X   2 
Congo X X X  3 
Congo R.P X X X  3 
Costa Rica X X X  3 
Côte d’Ivoire X X X  3 
Croatia  X X X X 4 
Cuba X X X  3 
Czech Republic X X X  3 
Djibouti X    1 
Dominica X    1 
Dominican Republic X X X  3 
Ecuador X X   2 
Egypt X X X X 4 
El Salvador X X X  3 
Estonia  X X X  3 
European Community X X X  3 
Fiji X    1 
Finland X X X  3 
FYR Macedonia  X X X  3 
Gabon X X   2 
Gambia X X X  3 
Georgia  X X   2 
Ghana X X   2 
Grenada X    1 
Guatemala X X X X 4 
Guinea X  X  2 
Guinea-Bissau X    1 
Guyana X X   2 
Haiti X    1 
Honduras X X X  3 
Hong Kong X X   2 
Hungary X X   2 
Iceland X X X  3 
India X X   2  S/C/W/298 
 Page 27 
 
 
  COUNTRIES 09.A. 09.B.  09.C. 09.D TOTAL 
Indonesia X X  X 3 
Israel X X X  3 
Jamaica X X   2 
Japan X X X  3 
Kenya X X X  3 
Korea, Republic of X X X  3 
Kuwait X X X  3 
Lesotho X X X  3 
Liechtenstein X X X  3 
Macau X X   2 
Malawi X X X X 4 
Malaysia X X   2 
Mali X    1 
Malta X X   2 
Mauritania X X X  3 
Mauritius X X X X 4 
Mexico X X X  3 
Mongolia X X X  3 
Morocco X X X X 4 
Myanmar X X   2 
Namibia X X   2 
New Zealand X X X  3 
Nicaragua X X X  3 
Niger X X X  3 
Nigeria X X X  3 
Norway X X X  3 
Pakistan X X   2 
Panama X X   2 
Papua New Guinea X    1 
Paraguay X X X  3 
Peru X X   2 
Philippines X X   2 
Poland X X   2 
Qatar X    1 
Romania X X X  3 
Rwanda X    1 
St. Kitts & Nevis X    1 
St. Lucia X    1 
St. Vincent & Grenadines X    1 
Senegal X X   2 
Sierra Leone X X X X 4 
Slovak Republic X X X  3 
Slovenia X X   2 
Solomon Islands X    1 
South Africa X X X  3 
Sri Lanka X X   2 
Suriname X X   2 
Swaziland X    1 
Sweden X X X  3 
Switzerland X X X  3 
Chinese Taipei X X X  3 
Tanzania X    1 
Thailand X X  X 3 
Togo X X X  3 
Tonga X X   2 
Trinidad and Tobago X X   2 
Tunisia X X   2 
Turkey X X   2 
Uganda X X   2 
Ukraine  X X X  3 S/C/W/298 
Page 28  
 
  COUNTRIES 09.A. 09.B.  09.C. 09.D TOTAL 
United Arab Emirates X  X  2 
Uruguay X X X  3 
United States X X X X 4 
Venezuela X X  X 3 
Viet Nam X X   2 
Zambia X X X X 4 
Zimbabwe X X X  3 
 TOTAL 133 110 67 17 327 
Legend:   
09.A.  Hotels and Restaurants;   09.B.  Travel Agencies and Tour Operators Services;   09.C.  Tourist Guides Services;   
09.D.  Other.      
Source :  WTO 
 
___________