RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/298/Add.1 
5 October 2009 
 
 (09-4738) 
Council for Trade in Services  
  
 
TOURISM SERVICES 
 
Background Note by the Secretariat
1 
 
Addendum  
 
  At the meeting of the Council for Trade in Services on 23 June 2009, Members requested additional information regarding tourism services, as  noted in the Chairman's summary of discussions 
(JOB(09)/66).  Below is the Secretariat's respon se to the request for further information.   
 
_______________ 
 
 
I. TRAVEL WARNINGS 
1. As noted in paragraph 37 of  the Secretariat Paper on tourism, travel warnings can have a 
devastating economic impact.2  This is especially true in the short-term, with respect to both 
employment and revenue losses.  At the same ti me, governments obviously do have the right – and 
arguably the obligation – to help protect the we ll-being of their citizens travelling abroad.  
Consequently, the issue at stake is evidently to ensure that travel warnings are objective, impartial, 
and do not cause unnecessary negative effects.   
2. While media accounts of both negative economic im pacts and allegedly subjective application 
are readily available,3 academic analyses of the occurrences and economic effects of travel warnings 
appear to be rare.  A 1996 journal article argues th at "[t]ourism is inextricably linked with politics", 
and suggests that the detail and accuracy of trav el advice issued by government agencies might 
potentially be influenced by broader political objectiv es.  The article concludes that the responsibility 
for the provision of such advice ideally should not lie within national governments, but instead with 
an independent international organization, a nd acknowledges that most governments would be 
unwilling to relinquish such responsibility for the safety of their citizens.4  
                                                      
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. 
2 Tourism Services , Background Note by the Secret ariat, WTO document S/C/W/298,  8 June 2009. 
3 Some recent examples (based on an September 2 009 Google search for the terms "travel warnings, 
economic impact") include:  Boost for Zimbabwe Tourism as US Lift Travel Warnings ;  Canadian Officials 
Sharply Critical of WHO Travel Warnings;  US Calls EU Travel Warning Unwarranted;  and US Israel Travel 
Warnings Create Economic Terrorism.    
4 Richard Sharpley, Julia Sh arpley and John Adams, Travel Advice or Trade Embargo?;  The Impacts 
and Implications of Official Travel Advice , Tourism Management, Vol. 17, No. 1, 1996, pp. 1,7.  The article 
further states, "just as it would be unethical for tour operators to compromise the safety of tourists, so too is it unethical to compromise the livelihood of destination communities by withdrawing operations for reasons other 
than security or financial necessity" (p. 6).  S/C/W/298/Add.1 
Page 2  
 
  3. A more recent study, focusing on Africa, claims that travel warning have not been 
consistently applied, and that terrorist incident s in developed countries typically result in weaker 
warnings being issued (or none at all), when comp ared to incidents in developing countries.  The 
article emphasizes that "[a]lthough no comprehensive an alysis has been done of the impact of these 
‘alerts’ on African economies, it is estimated that the impact can be devastating if it is borne in mind 
that income from tourism-related industries drops by at least 70 per cent when ever such alerts are 
issued against countries that are dependent on revenue from tourism".
5 
4. Travel warnings, advisories and travel alerts are typically issued in response to natural 
disasters, health crises or terrorism, and often include warnings about high crime levels or other issues relevant to tourism.
6  While most governments do evidently exercise caution and restraint in issuing 
travel warnings, there are apparently no commonly agreed definitions of the terms used, which means 
they can indicate different degrees of risk.  In th e United States, for example, travel warnings are 
issued when the State Department decides, based on all relevant information, to recommend that 
Americans avoid travel to a certain country.7  Countries where avoidance of travel is recommended 
will have travel warnings, complemented by count ry specific information.  By contrast, travel 
alerts constitute a means to disseminate informati on about terrorist threats and other relatively short-
term and/or trans-national conditions  posing significant risks to the security of American travellers.  
Travel alerts are issued when ther e is a specific threat that cannot be countered, and have to date been 
issued to deal with short-term coups, violence by terrorists, anniversary dates of specific terrorist 
events, etc.  There is also a "worldwide caution"  to update information on the continuing threat of 
terrorist actions and violence against American  citizens and interests throughout the world.8 
5. In other countries, such as the United Kingdom , travel warnings/advisories indicate specific 
categories of risk, for example, countries where a ll travel is advised against;  countries where all 
travel is advised against regarding parts of these co untries;  countries where all but essential travel is 
advised against;  and countries where all but essentia l travel is advised against in parts of those 
countries.9  As a third example, some countries are more  descriptive as to the dangers encountered and 
do not specify clear categories of risk.  Instead, the strength of the language used to describe the 
security/safety issues gives an indication as to the degree of danger.  Regarding health and 
environmental risks, the categorisation is somewhat easier (and less controversial), as the evaluation 
                                                      
5  Okumu, Wafula, Security Alerts and their Impact on Africa , African Security Review 16.3 – Institute 
for Security Studies , 2007, p.6  (available online, at http://www.iss.co.za/static/templates/tmpl_html.php?node_ 
id=3448&slink_id=6245&slink_type=12&link_id=22).  The article (p.7) also notes that a study conducted by 
the Kenyan Ministry of Foreign Affairs in 2004 estimated that the direct impact of th e travel ban imposed by the 
UK in 2003 amounted to £108 million.   (A 2004 United Kingdom government  review of travel advice is 
available at http://www.fco.gov.u k/resources/en/pdf/TA-review.) 
6 One of the few websites compiling government tr avel warnings is Nations Online (http://www.nation 
sonline.org/oneworld/travel_warning.htm).  With regard  to the strongly negative impact of criminality on 
tourism, see UNWTO, Tourist Safety and Security: Prac tical Measures for Destinations , Madrid, 1996. 
7 See http://travel.state.gov/travel/cis_pa_tw/cis_pa _tw_1168.html.  According to the US website, 
travel warnings are issued to describe long-term, pr otracted conditions that make a country dangerous or 
unstable.  Travel Warnings are also issued when the US Government's ability to assist American citizens is 
constrained due to the closure of an embassy or consulate or because  of a drawdown of its staff. 
(http://travel.state.gov/travel/c is_pa_tw/tw/tw_1764.html.) 
8 Available online, at http://travel.state .gov/travel/cis_pa_tw/pa/pa_1161.html. 
9 For further details, see http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/, 
as well as http://www.fco.gov.uk/en/tr avel-and-living-abroad/travel-advice- by-country/how-we- advise/.  New 
Zealand uses a system of:  Extreme risk – advising against all travel (within all or parts of a destination);  high 
risk – i.e. non-essential travel, includi ng tourist travel, should be deferred;  and some risk – signifying a level of 
risk that warrants caution (http://www.saf etravel.govt.nz/advisories/aboutadvisori es.shtml).  Canada uses a four-
step system  (http://www.voyage .gc.ca/faq/tip_pr v-eng.asp#5).  S/C/W/298/Add.1 
 Page 3 
 
 
  of risk is monitored at the international level.  Hence, travel advisories often report the information 
issued by international organisations such as the World Health Organization.10 
6. The World Tourism Organization (UNWTO) in 2005 adopted Guidelines On Travel 
Advisories, which address the procedures used when formulating and administering travel warnings.11 
Nonetheless, wide variations in terms of appli cation evidently remain, and few government websites 
for travel warnings refer to the UNWTO Guidelines .  It must be noted that some of the differences in 
the application of travel warnings , e.g. their duration and degree of severity, might be accounted for 
by higher levels of perceived risk in  a given situation for citizens of some countries than for others.      
7. The UNWTO Guidelines (Box 1) are divided into three sections:  the first section concerning  
Preparation, Language and Publication  states, inter alia , that travel advisories should be "accurate, 
relevant and appropriate, avoid am biguous language as well as bias a nd political considerations," and 
should "be regularly updated";  the section on Announcements Concerning Travel Threats and Risks  
recommends that travel advisories "be specific about the nature of the threat or risk," and that 
"prudence and restraint" be used in evaluating the threat and in the language used;  and thirdly, the 
section on Cooperation with Affected Countries  calls on affected countries to provide "timely and 
accurate advice" about changes of circ umstances to the issuing countries.  
Box 1.   UNWTO GUIDELINES ON TRAVEL ADVISORIES   
 
Adopted by resolution A/RES/508(XVI) at the Sixteenth Session of the General Assembly of the World 
Tourism Organization (Dakar, Senegal, 28 November − 2 December 2005).  
 
 
PREPARATION, LANGUAGE AND PUBLICATION  
 
* A wide variety of relevant governmental and non-govern mental sources should be used, whenever possible   
and appropriate, in gathering info rmation for preparing advisories.  
* Travel advisories should be accurate, relevant and appropriate, avoid ambiguous language as well as bias 
and political considerations.  
* Information contained in travel advisories should be published on a central, easy-to-use and widely known 
website so that the various branches of government involved coordinate their message. Travel advisories 
should be regularly updated, preferably within a period of three months.  
* Travellers should be encouraged to consult, prior to departure, all sources of information, both 
governmental and non-governmental.  
 
 
ANNOUNCEMENTS CONCERNING TRAVEL THREATS AND RISKS  
 
* Public announcements of travel threats and risks that are cont ained in advisories should, whenever 
possible, be specific about the geographical location of the problems and include maps and indications of 
distance.  
 
                                                      
10  For WHO information, see http://www.who.int/ith/en/. 
11 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). S/C/W/298/Add.1 
Page 4  
 
  * Travel advisories should be specifi c about the nature of the threat or risk and they should be developed 
through a robust and considered pro cess. The following are examples of categories of threats and risks that 
may be addressed:  
    political (due to political process)  
    social (crime, delinquency)  
    related to terrorism  
    environmental (natural disasters)  
    industrial (such as ch emical or nuclear hazards)  
    related to health (communicable disease status and emergencies, such as epidemics)  
    related to transportation systems  
* Prudence and restraint should be used in evaluating the threat and in the language used. Threats and risks 
should be communicated in an accur ate and consistent manner by charac terizing, as far as possible, the 
scale, probability or imminence of the problem or event.  
* Public announcements of threats and risks in adviso ries should be under consta nt review and in each case 
should specify the date of their publication.  
 
 
COOPERATION WITH AFFECTED COUNTRIES  
 
*  Affected countries should provide timely and accur ate advice about changes of circumstances to the 
issuing countries through the established communication channels. It is, however, understood that it is up 
to the country issuing the travel advisory to make its own assessment affecting the safety and security of its 
citizens. 
 
Source :  UNWTO  (available online at http://www.unwto .org/rcm/guidelines/advisories.php?lang=E).  
 
8. The predecessor of the UNWTO Guidelines is the Global Code of Ethics for Tourism , which 
was adopted in 1999.12  Paragraph 5 of Article 6 of the Code states: 
"Governments have the right – and the duty – especially in a crisis, to inform their 
nationals of the difficult circumstances, or even the dangers they may encounter 
during their travels abroad; it is their resp onsibility however to is sue such information 
without prejudicing in an unjustified or exaggerated manner the tourism industry of 
the host countries and the interests of their own operators;  the contents of travel 
advisories should therefore be discussed befo rehand with the authorities of the host 
countries and the professionals concerned;  recommendations formulated should be 
strictly proportionate to the gravity of the situations encountered and confined to the 
geographical areas where the insecurity h as arisen; such advisories should be 
qualified or cancelled as soon as a return to normality permits." 
9. Paragraph 6 of Article 6 of the Code  further stipulates: 
"The press, and particularly the specialized travel press and the other media, 
including modern means of electronic communication, should issue honest and 
                                                      
12  Adopted by resolution A/RES/406(XIII) at the thirteenth WTO General Assembly (Santiago, Chile, 
27 September - 1 October 1999), and available online, at http://www.unwto.org/code_ethics/pdf/languages/ 
Codigo%20Etico%20Ing.pdf.  Article 1 of the Code  is Tourism’s contribution to mutual understanding and 
respect between peoples and societies ;  Article 2 is Tourism as a vehicle for individual and collective fulfilment ;  
Article 3 is Tourism, a factor of sustainable development ;  Article 4 is Tourism, a user of the cultural heritage of 
mankind and a contributor to its enhancement ;  Article 5 is Tourism, a beneficial activity for host countries and 
communities ; Article 6 is  Obligations of stakeholders in tourism development ;  Article 7 is Right to tourism ;  
Article 8 is Liberty of tourist movements ;  Article 9 is Rights of the workers and entrepreneurs in the tourism 
industry ;  and Article 10 is Implementation of the principles of the Global Code of Ethics for Tourism .  S/C/W/298/Add.1 
 Page 5 
 
 
  balanced information on events and situa tions that could influence the flow of 
tourists; they should also provide accurate and reliable information to the consumers 
of tourism services; the new communication and electronic commerce technologies should also be developed and used for this purpose; as is the case for the media, they 
should not in any way promote sex tourism." 
10. Both the UNWTO Global Code of Ethics for Tourism  and the Guidelines On Travel 
Advisories  are non-binding under international law.   In 2005, the UNWTO published a survey of 
implementation of the Code  by governments, and its incorporation into domestic law.
13  The survey 
received responses from 94 UNWTO Members, and includes tables with excerpts of the texts of acceptance of the Code  as well as details of government efforts to promote it.  Of the survey 
respondents, 62 indicated it had been formally accepted.
14  In addition, 68 countries indicated they had 
either incorporated the principles of  the Code into their legislative te xts, or had used them as a basis 
when establishing national laws and regulations. 
11. A new UNWTO initiative, the UNWTO Declaration on the Facilitation of Tourist Travel , is 
expected to be approved at the UNWTO  General Assembly in October 2009.15  With regard to travel 
warnings, the draft declaration states: 
"Aware that travel advisories have an unde niable role to play in providing useful 
information to protect citizens when trav elling abroad, the General Assembly also 
acknowledges that they can have serious consequences for tourism activity and the 
economies of countries and destinations. 
The General Assembly therefore reaffirms the provisions of paragraph 5 of Article 6 
of the Global Code of Ethics for Tourism: {attachment deleted}  
UNWTO Member States issuing travel adviso ries in respect of third countries are 
called upon to commit to consult as widely as possible with the governments of these 
countries and destinations, especially on the safety and security aspects of each tourist region in the country, and to update the rele vant information at regular intervals, at 
least every six month. 
The General Assembly also reaffirms the full validity of the guiding principles for 
official travel advisories attached to its resolution 508 (XVI), adopted during its session in Dakar, Senegal, (2005) and, in  addition, calls upon Member States to 
consider other relevant re commendations issued by other competent organizations." 
                                                     
 
13 Available online, at http://www.unwto.org/code_ethics/eng/status.htm.  More recent information is 
apparently not available. 
14 However, at the time of the survey only 15 ha d notified their formal accep tance of the Code in 
writing to the Secretary-General of the UNWTO or the Chairman of the World Committee on Tourism Ethics. 
15 Available online, at http://www.unwto.org/confere nces/ga/en/pdf/18_20.pdf.  An example of the 
political sensitivities involved, as noted on page 5, is th e footnote added to one of the meeting reports, "[t]he 
German delegation points out that the publication of travel advisories is under the national responsibility of the Federal Ministry of Foreign Affairs and that such advisori es are issued with the aim of  protecting the interests of 
German citizens".  S/C/W/298/Add.1 
Page 6  
 
  II. ANTI-COMPETITIVE PRACTICES 
12. As noted in paragraphs 38-39 of the Secretariat Paper, anti-competitive practices affecting 
tourism, including those by airlines or tour operators, are a real possibility.
16 Nonetheless, 
documented case studies of such practices, especially w ith respect to developing country destinations, 
appear to be quite rare, thereby hindering the development of appropriate policy responses.17  
13. A 2006 journal article observes that anti-comp etitive practices can occur both between and 
within countries, and can involve abuses by both developed and developing-country suppliers.18  For 
example, an OECD study notes that large Western airlines have in some cases been accused of 
abusing their market power to the detriment of local suppliers19, while another publication provides 
evidence of similar practices on the part of certain developing country airlines.20 
14.  Examples also exist of anti-competitive practices in  other sectors that directly affect tourism.  
These sectors include cement (essential for buildi ng hotels), jet fuel, freight transport, cable TV, 
telecoms, banking services, computer software, shipping, and air freight.21  With regard to CRS and 
GDS, by contrast, technological and ownership cha nges have apparently reduced the potential for 
anti-competitive practices.22  
15. In the larger WTO context, competition-related is sues were already raised at early stages of 
the current trade negotiations.23  While extensive documentation was submitted by WTO Members to 
the Working Group on the Interaction between Trad e and Competition Policy, tourism issues were 
rarely mentioned.  (A General Council Decision,  on 1 August 2004, later provided that no work 
towards such negotiations take place during the Doha Round.) One significant  exception was a 
paragraph in an UNCTAD submission with respect to S&D provisions.24  A Communication from 
                                                      
16 See, for example, 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.   
17 The most complete information on the actual extent and types of anti-competitive practices involving 
tourism would, of course, be national-level information.   Unfortunately, no such submissions have been made 
by WTO Members to date in the co ntext of the services negotiations. 
18 A, E, Rodriguez and James Murdy, Anti-Competitive Practices in the Tourism Industry:  The case of 
small economies , Journal of Business & Economics Research, October 2006. 
19 OECD, op. cit.,  p. 26.    See also OECD, Tourism in OECD Countries 2008: Trends And Policies , 
2008, p.73 for an example of anti-competitive practices regarding destination management in the Caribbean. 
20 World Bank,  Services Trade and Development:  The Experience of Zambia , e.d. A. Mattoo and L. 
Payton, Washington D.C. 2007,  p. 197. 
21 PowerPoint presentation by Simon Evenett and Frédéric Jenny, Anticompetitive Practices in Sub-
saharan Africa: Myth, Re ality and Perspectives , CRC 3rd International Conference: Pro-Poor Regulation and 
Competition: Issues, Policies and Practices, Capetown, 7-9 September 2004 (available online, at http://www. 
competition-regulation.org.uk/conferences/southa frica04/Powerpoints/EvenettJenny2.ppt). 
22 See Second Review of the Air Transport Annex, Developments in the Air Transport Sector  (Part 
One), Note by the Secretariat, WTO document S/C/W/270,  18 July 2006, pp. 20-42 (available online at 
http://www.wto.org/english/tratop_e/s erv_e/transport_e/review2_e.htm). 
23 See, for example, Robert Anderson and Frédéric Jenny, Competition Policy, Economic Development 
and the Possible Role of a Multilateral Framework on Competition Policy:  Insights from the WTO Working 
Group on Trade and Competition Policy , published in Competition Policy in East Asia  (Erlinda Medalla, ed., 
Routledge/Curzon,  2005). 
24 WTO document WT/WGTCP/W/197, 15 August 2002, p.11.  The paper noted, "[i]t was proposed 
that as an additional element of S&D, developed countries should envisage renouncing existing exemptions or 
exceptions in their competition laws in cases where it is known that such provisions affect important interests of developing countries.  This could apply to export cartels, as well as sectoral exemptions in service sectors 
essential for the commercial competitiveness of developing  countries, such as transport services and tourism".  S/C/W/298/Add.1 
 Page 7 
 
 
  Trinidad and Tobago also noted the challenges faced by small open economies in developing and 
implementing a competition regime.25 
16. In the services negotiations, one aspect of  the 1999 proposal for a GATS Annex on Tourism, 
as noted in paragraph 5 of the Secretariat Paper,  was the prevention of anti-competitive practices.  The 
proposal listed as examples of common anti-compe titive practices in tourism:  "1. Competitive 
exclusion through the discriminatory use of inform ation networks, predatory pricing, allocation of 
scarce resources, and ancillary services to air transp ort;   2. Abuse of dominance through exclusivity 
clauses, refusal to deal, tied sales, quantity restrictions , or vertical integration;  and 3. Misleading or 
discriminatory use of information by any juridical person."26  In discussing the Annex proposal, a 
number of Members raised doubts on the suitability of  an Annex, believing that the proposed cluster 
was too wide and some issues were outside the scope  of GATS.  A revised Annex proposal attempted 
to address Members’ comments regarding pr o-competitive disciplines and other issues.27 
17. The WTO Symposium on Tourism Services , held in 2001 was intended, inter alia , to help 
address the issues raised in the Annex propo sal. It included a presentation on anti-competitive 
practices in tourism which provided, however, few specific examples of how those practices affected 
different countries.28  Other papers also listed potential an ti-competitive practices that could affect 
developing countries, but typically  did not actually provide document ed examples of such practices.29    
18. The elimination of anti-competitive practices and unfair competition issues was also 
discussed in a 2004 formal paper on tourism which stat ed, "[t]his element is expressed in almost all 
the proposals from developing country Members.  Anti- competitive practices are said to take many 
forms, such as the exclusive u se or abuse of Global Distribution System (GDS) and Computer 
Reservation System (CRS), de-racking, and price-fixing through monopoly of access."30 
19. As part of the plurilateral GATS negotiations, a request for further liberalization in tourism 
was circulated in mid-2007.  It addresses the issu es of both travel warn ings and anti-competitive 
practices.31  Seven developing country Members ha ve sponsored this request to date.32   
                                                      
25 WTO document WT/WGTCP/W/143, 2 August 2000. 
26 Communication from the Dominican Republic, El Salvador, and Honduras – Preparations for the 
1999 Ministerial Conference , WTO document S/C/W/127, 14 October 1999, p.14. 
27 WTO document S/CSS/W/107, 26 September 2001. 
28 The presentation on anti-compet itive practices is available on the WTO website, at http://www. 
wto.org/english/tratop_e/serv_e/souty.doc.  All the Symposium documents and presentations are also available 
online, at http://www.wto.org/ english/tratop_e/serv_e/symp_tourism_serv_feb01_e.htm.  
29 See, for example, Barbados Private Sector Team, Anticompetitive Practices in the Global Tourism 
Industry , Barbados, 2004 (with the possible exception of cruise ships, as noted on p. 9), as well as F. Souty, 
Passport to Progress:  Competition Challenges for Worl d Tourism and Global Anti-Competitive Practices in the 
Tourism Industry , UNWTO, 2002. 
30 Communication from Brazil, Co lombia, Dominican Republic, El Salvador, India, Indonesia, 
Nicaragua, the Philippines and Thailand, Review of Progress in Negotiations, Including Pursuant to Paragraph 
15 of the Guidelines for Negotiations -- Tourism Services , WTO document TN/S/W/23, 29 September 2004, p.3.   
31 The tourism plurilateral request was directed toward 15 high-income developed and developing 
countries.  While the plurilateral requests have not been made publicly available in the GATS context, they can 
be found on the internet, including on some governmental websites. 
32 To help explain the tourism request, a "model sc hedule" was prepared by the requesting countries, 
illustrating the types of liberalization being sought.  Th e model schedule includes a paragraph under Additional 
Commitments on the prevention of anti-competitive practices.   With regard to travel warnings, the model 
schedule asks the "target countries" to add additional commitments, based on the UNWTO guidelines, to their 
GATS schedule with respect to the procedures used wh en formulating and admini stering travel warnings. S/C/W/298/Add.1 
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  III. TOURISM VALUE CHAINS – CONTRIBUTION TO ECONOMIC AND SOCIAL 
DEVELOPMENT 
20. As noted in paragraph 3 of the Secretariat pa per, tourism's multi-sectoral linkages are both a 
strength and potential source of weakness.  While  they offer extensive opportunities for poverty 
alleviation and economic diversification, ineffici encies or inappropriate regulation in particular 
sectors can reduce overall competitiveness.
33  In a similar manner,  The Diagnostic Trade Integration 
Study (DTIS), study for Tanzania notes that the contribution of tourism to economic growth and 
poverty reduction comes not just from the tourist i ndustry itself, but also from the linkages that 
tourism has to the rest of the economy.  Strengthening these linkages is highly important for overall growth and poverty reduction.
34 
21. A recent WTO working paper observes that one  of the most important reasons why the 
poverty alleviation potential of touris m often still fails to be recognized is the negative stereotype that 
the vast majority of tourism benefits "leak out" of the developing country concerned, in the form of profit repatriation, payments for importe d inputs, anti-competitive practices, etc.
35  As recent studies 
by the Overseas Development Institute (ODI) and ot hers have demonstrated, however, such leakage 
concerns are often highly exaggerated, sometim es as a result of the improper methodologies used.36  
In addition, international tourism often compares fa vourably with other exports, e.g. clothing, which 
also have high leakage levels due to  extensive reliance on imported inputs. 
22. The key element in reducing "leakages" of tourism revenues is increasing domestic 
"linkages".37  Leakage typically occurs when competitively priced goods, services and human 
resources of sufficient quantity and quality are not domestically available;  few tourism-related 
businesses would intentionally choose higher-priced impor ted inputs.  The lack of reasonably priced 
domestic financing for local investments means that FDI might be the logical alternative, despite the 
subsequent "leakage" of repatriated profits, etc.   Without a sufficiently capable and adequately-
capitalized domestic construction sector, foreign firm s might again be needed.  Similarly, import 
demand could occur with respect to hotel furnishing s, managerial personnel, and even the food served 
to tourists.38   
23. With respect to tourism's distributional effect s, the Secretariat Paper on tourism also notes 
that tourism is highly labour-intensive, and an impor tant (actual and potentia l) source of employment, 
including in remote and rural areas.  In additi on, one of the most important characteristics of 
international tourism is the cross-border movement of consumers – i.e., the "consumer" coming to the 
supplier – thereby permitting even unskilled workers in  remote areas to become exporters of tourism 
services.39  This potential for domestic integration - and reducing income gaps - is increasingly 
recognized.  
                                                      
33 Tourism Services , op. cit., pp. 1-2.  
34 Diagnostic Trade Integration Study (DTIS), Volume 2, Tanzania, November 2005, p. 49 (website 
reference:  http://www.integratedframework.org /files/english/Tanzania_DTIS_Vol2_Nov05.pdf).  
35 Dale Honeck, LDC Poverty Alleviation and the Doha D evelopment Agenda:  Is Tourism being 
Neglected? , World Trade Organization,  Staff Working Paper ERSD-2008-03, 12 August, 2008, p. 11. 
36 See, for example, Jonathan  Mitchell and Caroline Ashley, 'Leakage' claims:  Muddled thinking and 
bad for policy? , ODI Opinion, No. 81, June 2007.  ODI work on tourism, including the study mentioned, is 
available online, at http://www.odi.org.uk/tourism/. 
37 See, for example, World Tourism Organization, J Gollub, A Hosier, G Woo, Using Cluster-Based 
Economic Strategy To Minimize Tourism Leakages , 2002.  With regard to the role of government subsidies in 
tourism, see Subsidies for Services Sectors, Information Contained in WTO Trade Policy Reviews , Background 
Note by the Secretariat, WTO document S/WPGR/W/25/Add.5,  27 March 2007.   
38 See, for example, Box 2 of Honeck, op. cit., pp. 12-13.  
39 Tourism Services , op. cit., p. 2.  Tourism awareness progra mmes can also play an important role in 
local tourism development (see, for exam ple, http://www.tourismawareness.ie/).  S/C/W/298/Add.1 
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  24. The 2008 report, Africa and the Monterrey Consensus: Tracking Performance and Progress, 
states, "[t]here 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 infrastructure."
40  The International Labour Organization (ILO) has stated, "[t]he growing significance 
of tourism to developing countries is closely linked to the role of employment in promoting the 
Millennium Development Goals (MDGs)".41   
25. In 2007, the ILO and UNWTO signed a cooperation agreement, stating that the hotels, 
catering and tourism sector should become an increasingly important vehicle for employment creation, development and the elimination of povert y.  The first result was a statistical publication 
entitled "Labour Statistics on Employment in the Tourism Industries".
42  The ILO is also developing 
pilot activities in the context of Decent Work Country Programmes, which aim to improve the 
competitiveness and quality of the tourism sector  by supporting vocational training programmes and 
developing and/or improving social dialogue  at the national and enterprise levels. 
26. Tourism, with its many (actual and potential) li nkages to a wide range of other services, as 
well as to agriculture and manufacturing, is also an obvious option for export diversification.43  The 
fact that exporting becomes possible from area s which otherwise might have few economic 
opportunities, is all the more important when tourism's employment opportunities for women, lower-skilled workers and SMEs are considered.  The mi nimal entry barriers for many tourism activities 
typically offer significant opportunities fo r small-scale domestic entrepreneurship.
44  
27. A further tourism benefit is the potential "dua l nature" of most tourism infrastructure.  
Airports built to handle increased tourist arrivals will invariably also provide greater opportunity for 
air cargo exports.  Similar arguments could be made  for the potential "dual-use" benefits of new 
roads, ports, passenger ferries, medical clinics a nd hospitals, electrical generation and transmission 
facilities, water treatment plants, telecommunications , and financial services (such as cash machines).  
Careful consideration of dual-use benefits is essen tial when creating tourism policies, when planning 
infrastructure under national development polic ies, or when negotiating GATS commitments.45   
                                                      
40 Joint report by the United Nations Economic Commission for Africa and the African Union 
(UNECA/AU), Economic Report on Africa  2008 , p. 60 .  Available online at http ://www.uneca.org/era2008/.  
41 ILO Sectoral Activities Programme, Toolkit For Social Dialogue In The Tourism Industry , Geneva 
2007, p.13. 
42 See http://www.ilo.org/public/english/ dialogue/sector/sectors/tourism.htm. 
43 As noted in the 2008 UNECA/AU report, "[t]o ex ploit the potential for economic diversification 
through manufacturing and tourism, African countries must improve national and regional infrastructure, while reducing barriers to movement of people, goods and se rvices between countries" (UNECA/AU, op. cit., p. 7). 
44 For more information on backward and forward economic linkages in tourism see, for example, 
Organization for Economic Cooperation and Development (OECD), Trade Policy Working Paper No. 57, Services Trade Liberaliza tion and Tourism Development , by Massimo Geloso Grosso , Molly Lesher and Enrico 
Pinali, 2007, pp. 7-14.   
45 See, for example, ITC website, The Executive Forum’s Consultative Cycle 2005: Innovations In 
Export Strategy,  Building The Tourism Mega-Cluster:  What Works And What Doesn’t (http://www.intracen. 
org/wedf/ef2005/tourism_mega_cluster_papers/tourism_mega_cluster_background_papers_presentations.htm), 
and The ITC Executive Forum on National Export Strategy, The Global Debate 2006, Bringing the Poor into 
the Export Process: Linkages and Strategic Implications   (http://www.intracen.or g/wedf/ef2006/Global-
Debate/Papers-Contributed.htm).  On GATS, see Honeck, op. cit., pp. 22-26.  S/C/W/298/Add.1 
Page 10  
 
  IV. MODE 4 AND DOMESTIC REGULATION 
28. The recent Secretariat Paper on Mode 4
46 draws attention to the gamut of measures – from 
quantitative restrictions to qualifications-related barriers – that affects movements of services 
professionals.  Eligibility criteria te nd to be strict, with a bias towards categories of persons who are 
highly skilled and well-educated, while application procedures often tend to be cumbersome, costly, 
and administratively complex.  Quantitative rest rictions are frequently placed on visas and work 
permits, expressed as numerical quotas and/or economic needs tests (ENTs).  In addition, the assessment of an applicant's credentials may take in to account only formal qualifications, rather than 
also considering skills and experience.
47   
29. In the context of the current GATS negotiati ons, India requested that service suppliers' 
diplomas and tourism qualifications be recognized abroad, and noted that Article VII recognition 
provisions are very important in this regard.48  Tourism elements can also be found in the plurilateral 
request for Mode 4, as well as the LDCs' earlier Mode 4  request.49  In the context of the Working 
Party on Domestic Regulation (WPDR), tourism specific issues have rarely been discussed. 
30. As noted above, Article 9 of the UNWTO Global Code of Ethics for Tourism  concerns 
workers and entrepreneurs in the tourism industry (Box 2).  With respect to visa procedures, the 
UNWTO Declaration on the Facilitation of Tourist Travel  states:   
"The General Assembly reaffirms the sovereign right of States to control the access of 
foreign nationals to their territories—notabl y by means of visa policies, which they 
have the authority to determine freely, un ilaterally, or in cooperation with other 
States. The General Assembly recognizes the di scretionary authority of States in this 
regard, yet it considers that improving vi sa issuance modalities could help facilitate 
tourist travel significantly. 
Convinced  that tourist travel could be greatly  facilitated by measures that can be 
implemented easily and without detriment to this discretionary authority, the General 
Assembly calls upon Member States, whenev er possible and taking consideration of 
the respective legislation, to adopt me asures to simplify visa application and 
processing formalities and to improve the timeliness of visa issuance."  
                                                      
46 Presence of Natural Persons (Mode 4),  Background Note by the Secretariat, WTO document 
S/C/W/301, 15 September 2009, pp. 19-20.  
47 An earlier informal paper regarding administrative procedures for obtaining visas and work permits 
was circulated by Colombia to the Working Party on Domestic Regulation (WPDR) as WTO document 
JOB(04)/84, 1 July 2004. 
48 S/CSS/M/12, op. cit. 
49 Communication from the delegation of Zambia on behalf of the LDC Group -- LDC Group Request 
on Mode 4 , WTO document JOB(06)/155,  24 May 2006.   S/C/W/298/Add.1 
 Page 11 
 
 
   
Box 2.   Article 9 of the UNWTO Global Code of Ethics for Tourism   
Rights of the Workers and Entrepreneurs in the Tourism Industry 
 
1. The fundamental rights of salaried and self-employed workers in the tourism industry and related 
activities, should be guaranteed under the supervision of the national and local administrations, both of their 
States of origin and of the host coun tries with particular care, given the specific constraints linked in particular 
to the seasonality of their activity, the global dimension of their industry and the flexibility often required of 
them by the nature of their work; 
 
2. Salaried and self-employed workers in the tourism industry and related activities have the right and the 
duty to acquire appropriate initial and continuous training;  they should be given adequate social protection;  job 
insecurity should be limited so far as possible; and a specific status, with particular regard to their social 
welfare, should be offered to seasonal workers in the sector; 
 
3. Any natural or legal person, provided he, she or it has the necessary abilities and skills, should be 
entitled to develop a professional activity in the field of tourism under existing national laws;  entrepreneurs and 
investors - especially in the area of small and medium-sized enterprises - should be entitled to free access to the 
tourism sector with a minimum of legal or administrative restrictions; 
 
4. Exchanges of experience offered to executives and workers, whether salaried or not, from different 
countries, contributes to foster the development of the world tourism industry;  these movements should be 
facilitated so far as possible in compliance with the ap plicable national laws and international conventions; 
 
5. As an irreplaceable factor of solidarity in th e development and dynamic growth of international 
exchanges, multinational enterprises of the tourism industry should not exploit the dominant positions they 
sometimes occupy;  they should avoid becoming the vehicles of cultural and social models artificially imposed 
on the host communities;  in exchange for their freedom to invest and trade which should be fully recognized, 
they should involve themselves in local development, avoiding, by the excessive repatriation of their profits or 
their induced imports, a reduction of their contribution to the economies in which they are established;   and  
 
6. Partnership and the establishment of balanced rela tions between enterprises of generating and receiving 
countries contribute to the sustainable development of tourism and an equitable distribution of the benefits of its 
growth. 
 
Source :  UNWTO  (available online at http://www.unwto .org/code_ethics/pdf/languages/Codigo%20Etico%20 
Ing.pdf). 
 
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