COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 14.10.1998 
COM(1998) 563 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
A European Community strategy to support the development 
of sustainable tourism in the developing countries 

INTRODUCTION 3 
1. TOURISM AS A FACTOR IN DEVELOPMENT 5 
l.l. TllE GROWTH Ol-TOURISM IN I in: WORLD ECONOMY: AN OPPORTUNITY 5 
1.2 WlDF VARIATIONS FROM COUNTRY TO COUNTRY 6 
1.3. COMMON PROBLEMS: STIFFER COMPETITION AND A POTENTIALLY ADVERSE IMPACT 7 
2. LESSONS OF THE PAST 9 
2.1 CONTRIBUTION OF THE EC AND THE MEMBER STATES 9 
2.2 A WEAK INSTITUTIONAL FRAMEWORK AND PUBLIC-PRIVATE SECTOR PARTNERSHIP 9 
2.3 OPERATIONAL CONCLUSIONS OF THE SUPPORT PROGRAMMES 10 
3. THE COMMUNITY AND THE SUSTAINABLE DEVELOPMENT OF TOURISM IN THE 
DEVELOPING COUNTRIES: OBJECTIVES AND MEANS 13 
3.1. FOSTERING THE SUSTAINABLE DEVELOPMENT OF TOURISM 13 
3.2. HELP FOR PUBLIC AUTHORITIES IN THEIR PLANNING, MANAGEMENT AND FOLLOW-UP TASKS 14 
3.2.1. Establishing a legal and institutional framework 14 
3.2.2. Support for developing human resources 16 
3.2.3. Public heritage and infrastructure .' 16 
3.2.4. Information and commercial organization 16 
3.3. CONSOLIDATING THE TOURISM INDUSTRY IN AN OPEN AND COMPETITIVE MARKET ECONOMY .... 17 
3.3.1. Encouraging cooperation in the private sector 17 
3.3.2. Direct support for S M Es 17 
4. BASIC PRINCIPLES FOR IMPLEMENTING THE STRATEGY 18 
4.1. A RIGOROUS APPROACH TAILORED TO THE COMPLEXITY OF TOURISM DEVELOPMENT 1 8 
4.1.1. Defining the support framework 18 
4.1.2. Targeted support programmes 18 
4.2. INVOLVING THE PLAYERS 19 
4.2.1. Promoting a public administration/private sector partnership 19 
4.2.2. Cofinancing agreements 20 
4.2.3. Grassroots action to support local initiatives 20 
4.3. REGIONAL COOPERATION 21 
5. CONSISTENCY, COORDINATION AND COMPLEMENTARITY 21 
CONCLUSION 22 
Introduction 
Support for developing the private sector is seen as one of the most effective vehicles 
for achieving the European Union's cooperation policy objectives as spelled out in the 
Maastricht Treaty. The Commission's communication on development cooperation 
policy in the run-up to 2000, and more recently its communication containing 
guidelines for negotiating the new cooperation agreements with the ACP countries 
and the cooperation agreements concluded with the EU's Mediterranean, Asian and 
Latin American development partners, agree on the need to foster the emergence of a 
competitive, employment-generating private sector in the developing countries as they 
shift towards open and competitive markets. 
Promoting economic growth while ensuring its compatibility with the concern to 
protect the environment, uphold human rights and safeguard the country's social 
fabric, is one of the key objectives to.be pursued in developing tourism in the 
developing countries. 
Tourism can have a marked impact on the economy, especially in developing 
countries, and can account for a substantial portion of GDP: in the past, growth in 
international tourism has ushered in structural changes in certain developing 
countries, sometimes ousting traditional productive sectors. Tourism has a major 
effect on job creation, being labour-intensive, whatever the level of skills required. It 
also stimulates activity in many other sectors of the economy such as transport, 
construction and food industries. Its growth prospects hold out real opportunities, not 
just for those international concerns already very active in the sector but also for the 
many small and medium-sized firms, including those active in rural areas and among 
social groups experiencing difficulties in the job market, such as young people, 
women and less skilled workers. 
However, unbridled growth can do irreparable harm to the environment and local 
societies, jeopardising the sector's own development potential: burgeoning tourism 
eats up space and the influx of tourists puts extra pressure on the natural environment, 
bringing about major changes in local culture. Furthermore, it has an impact on the 
environment by dint of the different modes of transport used or waste management 
measures which necessitate solutions affecting not just the tourist sector. 
For these reasons, with tourism set to go on expanding significantly in the decades 
ahead, it is important that the industry develops in a way that enables it to contribute 
meaningfully to furthering sustainable economic and social development, alleviating 
poverty and integrating the countries concerned into the global economy. 
Over the last 20 years the European Community has led the way in providing support 
for the expansion of tourism in the developing countries. Its assistance has taken a 
variety of shapes and forms and has involved significant funding. Tourism features in 
all the EC's framework cooperation agreements (Lome Convention, Barcelona 
Declaration, etc.) and the sector's growth prospects have prompted the Community's 
partners to devote more and more attention to it. 
So, in the light of the challenges posed by the development of tourism, for the 
economy and in terms of its impact on the environment and civil society, and of the 
lessons learnt from past cooperation policy in this field, this communication seeks to 
map out a strategic framework for EU and Member States support for developing 
sustainable tourism. The aim of this strategy, taking account of Community measures 
(acquis communautaire) in the field of tourism, is to ensure that cooperation schemes 
dovetail better with the EC's development objectives and to enhance the effectiveness 
of projects in the light of experience. 
This report is the culmination of a study conducted within the Commission, 
consultations with international donors and discussions with the Member States' 
bilateral cooperation agencies. 
Section 1 deals with the role of tourism -ds a factor in development and the challenge 
posed by the sustainable development of tourism in the developing countries. 
Section 2 sets out the lessons drawn from previous support programmes. 
Section 3 spells out possible future objectives and areas for action, while Section 4 
proposes basic principles for implementing the strategy. 
Lastly, Section 5 highlights the importance of consistency, coordination and 
complementarity with other EC policies and strategies. 
Tourism is an economic activity pursued almost exclusively by private firms 
operating locally or internationally. These firms vary in size: big international 
companies dominate some branches (air transport, but also marketing and to some 
extent tourist accommodation), but a myriad of small and medium-sized enterprises 
also operate at tourist destinations. Developing these small firms, and in particular 
their ability to offer competitive and reliable services, is likely to contribute 
substantially to economic and social development. This communication therefore 
complements existing liC support lor the development of the private sector in the 
developing countries' and analyses the specific features of the sector, while proposing 
an operational strategy to foster sustainable development. 
1 Such as the communication on future EC support for developing the private sector in the ACP 
countries, and the ECIP and EBAS programmes, etc. 
1 TOURISM AS A FACTOR IN DEVELOPMENT 
1.1. The growth of tourism in the world economy: an opportunity 
Over the last 25 years the travel and tourism industry has taken its place worldwide as 
a leading economic sector thanks to its capacity to boost trade and open up regions 
lagging behind in their development. 
Between 1980 and 1996 the number of international passengers rose globally by 4.6% 
a year on average. In 1997 international tourist arrivals reached a record 613 million, 
with global tourism expected to swell threefold by the year 2010 in terms of arrivals 
and fivefold in terms of revenue compared with 1995.2 
That same year earnings from international journeys (excluding international 
transport) were estimated at USD 448 billion, up 14% on 1995, i.e. USD 342 billion 
more than in 1980, outstripping global petroleum exports estimated at USD 330 
billion. On average, 10% of the developing countries' export revenues comes from 
tourism, but this figure can be as high as 80%, for example in certain islands 
weakened by the decline in agricultural production and in countries bereft of other 
resources and with few alternative opportunities for developing their economies. 
Some studies reckon that tourism already accounts for one out of every nine direct or 
indirect jobs and is set to spawn a 46% increase in employment by the year 2007.3 Its 
contribution to national economies is also reflected in the tax revenues going into 
public budgets. Tourist projects also have an indirect effect on the development of 
infrastructure and public services like transport and medical services, which benefit 
the local population. Tourist revenue can also help enhance and protect the destination 
country's cultural and natural heritage. 
The EU countries continue to add impetus to this growing phenomenon. They were 
the prime mover in the development of an industry which now accounts for 5.5% of 
GDP, 6% of jobs and upwards of 30% of trade in services, and they are holding their 
own as the world's premier source market with, in 1997, 17% more services sold to 
foreigners and 18% more services bought "by Europeans abroad than in 1995.4 
2 World Tourism Organization. 
3 Source: World Travel and Tourism Council (WTTC). 
4 Source: European Commission, Eurostat, "Statistics in brief- Economies and finance", 1998 and 
"Tourism in Europe: key figures 1996-97", June 1998. 
On the demand side, rapidly changing demand and supply patterns present fresh 
opportunities but also pose new challenges for the developing countries. 
Demographic, social and cultural changes in the main source countries are showing up 
in the increasing number of new niche markets: a swelling pensioner population, 
single people and childless couples, who are more likely than families with children, 
to head for faraway destinations. And tourist behaviour is changing too: witness the 
growth in demand for destinations not geared to mass tourism and offering genuine 
quality of service, and also the widespread interest in nature, culture, adventure and 
sporting holidays.5 
On the supply side, distances are shrinking with the liberalisation of air transport and 
the advent of new information and communications technologies. The travelling 
consumer now has more choice and access to better, swifter and more comfortable 
transport. Long-haul trips are no longer the obstacle they once were. Information 
technology and new means of communication such as the Internet are enabling small 
operators, albeit vying for customers with a host of competitors, to get their products 
quickly and cheaply to the individual traveller, cutting out the middleman and 
increasing the percentage of the cost that benefits the country visited. 
New challenges beckon for the tourism sector, very much caught up in the process of 
the liberalisation of services following the entry into force of the General Agreement 
on Trade in Services (GATS) with more than 100 signatory countries, among them 
many developing countries, making specific commitments.6 
1.2 Wide variations from country to country 
Tourism is now a key sector or is likely to become so in many developing countries 
which show potential. Some of those countries are already mature destinations with a 
fully-fledged tourist industry on which their economies are highly dependent. A fair 
number of them are already feeling the adverse effects of untrammelled growth and 
are having to upgrade their product. 
Other countries are emerging destinations with a modest but increasing tourist flow. 
Their success will depend on their ability to manage and control growth. Lastly, 
potential destinations with little or sporadic tourist activity are seeking to develop 
their tourist appeal. Unfortunately, the conditions for getting a tourist industry off the 
ground are not always present. 
5 See "Facts and figures on the Europeans on holiday" 1997-98, European Commission, DG XXIII, 
March 1998. 
6 For further information about GATS, which entered into force on 1 January 1995, and about the 
upcoming fresh negotiating round, see "GATS 2000 - opening markets for services", European 
Commission, Official Publications Office, 1998. 
In 1996 developing countries accounted for 30% of the market share of international 
tourism and a similar slice of world tourism revenue. Over the period 1990-96 they 
posted the quickest growth rate for international tourist arrivals and recorded an 
annual average growth rate of 5.8% compared with 4.4% worldwide. Over the same 
period tourist revenue rose even more rapidly, reaching an average of 10.5% per 
annum. 
However, significant differences can be observed at regional and sub-regional level as 
tourism is often a fluctuating phenomenon that is concentrated on certain geographical 
areas. Virtually all the increase in the global share of tourism revenue was achieved by 
the Asia and Pacific regions, which accounted for around half the total revenue in the 
developing economies for 1996. Africa and Latin America, whilst maintaining their 
share of tourist arrivals between 1980 and 1996, experienced a significant downturn, 
2% to 1.4% and 9.1% to 4.7% respectively, in their share of tourist revenue. A closer 
analysis at sub-regional and local level reveals that the concentration is even more 
marked within those regions compared with the situation in developed countries. 
1.3. Common problems: stiffer competition and a potentially adverse impact 
While global tourist demand is on the increase, the number of destinations and global 
capacity are advancing even more quickly. The developing countries are faced with 
major challenges. To hold on to their market share, the most developed destinations 
and those most dependent on tourism will have to cope with competition by 
enhancing quality and by diversifying their products and markets. Emerging and 
potential destinations will have to find their niche in this competitive market by 
capitalising on their "uniqueness" and novelty and by avoiding mistakes made by 
other destinations. 
On the one hand, the development of competitive products is held back by factors 
such as difficult access, inadequate infrastructure, chronic shortcomings in transport, 
unsuitability of facilities, an absence of investment funds, rudimentary technology, 
lack of management know-how and a dearth of skilled staff. Problems encountered 
by local firms, in particular small businesses, in tapping international services 
markets, are exacerbated by a lack of a commercial and marketing strategy, made all 
the more crucial by tight budgets. Political instability, economic difficulties and 
misguided publicity, can also harm the image of the destination and diminish sector's 
profits. On the other hand, most EU member states are major origin markets for many 
developing country destinations. European consumers have come to expect certain 
quality, reliability and safety standards both in respect of the tourist products and the 
environment in which they are consumed, as is often reflected in Community 
legislation designed to protect the travelling consumer's safety and legitimate rights. 
In some cases, take for example the directive on package tours,7 its application can 
also affect tourist service providers in host countries outside the European Union. This 
is a further reason why tourist firms, notably small businesses, should always offer 
reliable services and why the authorities should monitor the conditions in which those 
services are provided. 
7 Council Directive 90/314/EEC, OJ L 158, 23.6.1990, p.59. 
If not kept in check, growth of tourism may damage the environment (nature reserves 
destroyed, biodiversity under threat, water pollution, production of waste) and harm 
the cultural and social fabric (job insecurity, deteriorating working conditions, 
prostitution, threat to human rights, impoverishment of culture and traditions, 
overexploitation and consequent degradation of cultural sites). The national heritage 
runs the risk of being damaged or ruined, leading to a decline in tourism itself. 
Sustainable growth depends on respect for and development of cultural and natural 
heritage. The main reason why holidaymakers visit a destination is the availability of 
natural and cultural resources which have a pulling power at international level. 
Although change can be accepted to a certain extent and although it is considered part 
and parcel of the development process, tourist destinations have certain limitations in 
terms of space and what the local society can bear which can be measured in terms of 
density of construction, constraints on natural resources or on the percentage of 
tourists compared with the local population, in a given period. If a certain influx level 
is exceeded this may (a) have a negative effect on the pulling power of the destination 
and the experience of the tourist who tends, more and more, to flee over-population 
and environmental degradation, (b) diminish the quality of life of the local people, (c) 
make the cost of public investment in the development of tourism prohibitive. 
The size of the tourist influx depends on the extent to which the area visited is at risk 
environmentally or culturally. Similarly, account has to be taken of the very nature of 
the tourist activities concerned and how far they meet sustainable development 
criteria. 
The Earth Summit enabled those concerned to take on board more clearly the need for 
sustainable long-term development: many developing countries have since espoused 
the principle of sustainability in shaping their tourism policies. However, few of them 
have been able to convert this into concrete action owing to the short-term economic 
interests to which, all too often, priority is given to the detriment of protecting social 
and environmental assets. 
Account should also be taken of the adverse repercussions of non-sustainable 
development of tourism on the wider environment beyond the area most directly 
affected, in particular the impact of transport, notably air transport. Tourists for their 
part must be respectful of the natural and cultural heritage of the host communities. 
If the attractions of tourism which contributed to its development were to disappear 
owing to a degradation of the areas concerned, these destinations may in the long run 
suffer more losses than gains. For that reason alone, developing countries will face a 
major challenge in developing tourism. Faced with growing worldwide demand for 
tourism and pressure from commercial development at home, they often have very 
little other choice than to accept tourismas an unavoidable necessity. If they are to 
cope with these pressures, the support given has to help them at the same time to 
reduce the risks of failure and irreparable damage. 
Faced with these challenges, many developing countries will have to make an extra 
effort, confronted as they are with a host of difficulties which could jeopardise the 
success of the development of the sector, which will contribute meaningfully to the 
development process. 
2. LESSONS OF THE PAST 
2.1 Contribution of the EC and the Member States 
Given the role it can play in our partners' economic and social development and in 
strengthening ties between EC member states and the developing countries, tourism is 
an area of cooperation that features in most accords. EC support has taken various 
forms and has entailed the granting of significant sums of money in keeping with the 
priorities established by the beneficiary countries and approved by the European 
Union. 
Over the last two decades, the EC has been the biggest donor in developing tourism in 
the ACP countries although it was not until the third Lomé Convention that tourism 
was explicitly recognised as a sector eligible for financing. Article 122 of Lomé IV 
details the fields on which support should focus: (a) human resources and institutional 
development; (b) product development; (ç) market development and (d) research and 
information. In terms of development, tourism, like trade, has been seen as an engine 
for regional cooperation and the first programmes funded by the European 
Development fund (EDF) targeted operations at regional level. 
Elsewhere the Commission has detected increased interest among several Central 
American, Latin American and Asian countries in strengthening cooperation in 
tourism. In the past, the EC backed a number of projects in those regions but in recent 
years operations have shifted from support for programmes covering a variety of 
fields at national level to a more regional and thematic strategy. Programmes are also 
geared increasingly to boosting the private sector as tourism is seen as a field in which 
there are mutual exchanges and profits for the EU and the recipient countries. 
Turning to the Mediterranean countries, and in keeping with the implementation of 
the Barcelona Declaration adopted in December 1995 and the May 1996 Council 
Resolution on Euro-Mediterranean cooperation on tourism,8 cooperation on statistics 
has been set in train and a work programme on training and promotion in tourism is 
being studied. 
The EC has also given direct and indirect support for the development of tourism 
through support programmes in related fields such as infrastructure, the environment, 
human resources development, private sector development and health. 
2.2 A weak institutional framework and public-private sector partnership. 
Although private enterprise is the mainspring of tourism, its sustainable development 
requires public sector involvement and support in putting in place the necessary 
legislative framework and regional planning, in coordinating the various 
administrative levels of competence and ensuring coordinated action among the 
various players involved. 
A joint analysis of the key factors explaining the dynamism of tourist activities in the 
Member States and support activities for this sector in the developing countries shows 
OJC 155, 30.5.1996, p.l. 
that sustainable development of tourism requires the involvement of the public 
authorities and a structured and ongoing dialogue between all the partners: public 
sector, private enterprises and civil society. It is the public authorities who shape the 
environment in which the industry can develop. They have direct responsibility in a 
variety of fields such as security, health and the bulk of basic infrastructure. 
Responsible management of the natural and cultural heritage on which the 
development of tourism is founded such as beaches, water courses and lakes, natural 
parks, monuments and museums, is also an essential function which the governments 
must shoulder with the support and collaboration of enterprises and citizens alike. 
As tourist assets are perishable and large international companies such as airlines, 
hotel chains and tour operators can always move to new destinations, the short-term 
economic advantages of untrammelled growth can vanish overnight. If there is no 
rigorous administration and planning, the short-term development can spawn 
long-term problems. Well organised public administration is always necessary to 
ensure optimum impact of tourism. 
As many different public bodies share responsibility for development, inadequate 
coordination is often the cause of unbalanced growth and a lack of competitiveness, 
compared with similar destinations. In this respect, the institutional framework is 
often insufficient and the government's failure to give the matter adequate attention, 
makes it difficult to monitor and control the positive and negative repercussions of 
tourism (by maximising the economic benefits and employment and by controlling 
the impact on the environment and the adverse social repercussions). 
Civil society also plays a role in making a destination a success and in protecting 
human rights and dignity. For the local population to benefit from tourism, without 
suffering its ill effects, it is vital to accept tourism and to establish a model of 
sustainable development that respects its traditions. 
In conclusion, for the development of tourism to be viable, it should be governed by 
the principles of sustainability, competitiveness and open markets. The industry, the 
public authorities and civil society must work in concert, taking account of the needs 
of the market, the needs of the local population and the special features of the 
destination. This cooperation will also help attune the principle of sustainable 
development to that of the sector's competitiveness. 
2.3 Operational conclusions of the support programmes. 
Tourism has only recently emerged as a sector for cooperation and most donors have 
little experience in this field. The bulk of the support programmes financed in the 
past comprised projects and programmes providing technical assistance, framed and 
implemented ad hoc, in the absence of an adequate strategic framework or follow-up. 
The results have been mixed. Donors agree that operations lacked clear direction, that 
the interlocutors were poorly chosen or ineffective and the results difficult to evaluate. 
The EC, as the main donor for technical assistance projects, carried out more coherent 
evaluations, the results of which enabled it to draw the main conclusions set out in 
this document. 
10 
Concentrating efforts produces the best results 
In many past development programmes the efforts and the results were too thinly 
spread. This was true of programmes embracing several objectives while seeking to 
develop tourism "in general" throughout a country or region. In practice, such 
programmes proved difficult to administer as they were too ambitious to be effective. 
Tourism is a complex sector and it is unrealistic to seek to handle the whole gamut of 
issues in one and the same project financed by one donor. Project identification 
requires a sectoral approach and clearly targeted operations. 
A narrow definition of the objectives has produced a surfeit of tourism 
promotion activities in origin markets 
The objective of developing tourism has often been understood as "increasing the 
number of tourist arrivals". As a consequence, many projects focused on promotion 
activities in the client markets. The substitution effect in this field has been obvious 
as promotion requires recurring budgets and this type of operation has created a heavy 
dependence on the donor and little prospect of sustainability. Moreover, as the 
destinations have relied on outside funding they have failed to explore alternative 
instruments for promoting and marketing their products tailored to their budgets and 
have not looked for alternative sources of financing. 
Although promotion is necessary because of competition on the market and the 
number of substitute products, it must form part of a coherent and medium to long-
term tourism development strategy. If the product is not selling well, or if the most 
important tourist assets are seriously damaged or have been destroyed, it will become 
more and more costly to attract visitors and get them to return. If a tourist destination 
is not to start losing its appeal, action needs to be taken in fields other than promotion 
so as to develop the product and boost the tourist industry's competitiveness by 
resorting to know-how, technology and investment. 
Important environmental and social aspects affecting the sustainable 
development of the tourist destination have been neglected 
Although the EC's support programmes have not had direct negative repercussions 
they have not taken into consideration the actual or potential impact of tourism on the 
environment. Problems to do with gender status, work codes, environment-friendly 
development or spécifie ecological issues affecting certain small, highly fragile 
islands have not as a rule been broached as part of tourist projects. 
The environmental and social problems caused by the development of tourism are not 
only likely to jeopardise long-term development but may also affect the quality of the 
tourist's experience and threaten the competitive position of the tourist product 
(pollution, defiled countryside, mediocre service, insufficient protection and security, 
etc). 
New forms of tourism more in tune with the principles of sustainable development 
11 
have sprung up in recent years, ecotourism being one of them. Some donors have 
assigned priority to this kind of tourism and the projects have largely dovetailed with 
action to protect the environment such as the creation of reserves. This has made it 
necessary to find economic alternatives for local communities. However, application 
of the principle of sustainable tourist development entails much more than protecting 
sensitive sites and setting aside protected areas as the pulling power of tourist 
destinations and the motives of tourists are much more complex than a simple visit to 
a natural park. A more comprehensive approach incorporating the objective of 
sustainable development is necessary is one wishes to cover the diversity of tourist 
products in the developing countries.9 
The choice of interlocutors has narrowed the scope and effectiveness of tourism 
support programmes 
In its development cooperation policy the EC has, by and large, tended to relate to 
national tourist offices and tourism authorities where programmes to foster tourism 
are concerned. These bodies are, however, often highly involved in marketing 
activities and it is they who have slanted the content of projects to promotion. 
Furthermore, dealings with them have turned out to be somewhat unsatisfactory as 
they are incapable of creating a coherent interface with the private sector or 
addressing the key issues that affect the sustainable development of tourism. In 
practice, most of these authorities have little or no say over important questions 
administered by other government bodies with greater economic and political clout, 
for example matters such as air access, immigration, transport, environment, support 
for SMEs, education and fiscal policies. There is therefore a need for an overall 
strategy involving all the different levels of government. 
Given the variety of players involved in the development of tourism and the role 
played hitherto by the national tourist authorities new methods and new partnerships 
should be established, in all openness, to help bring other decision-makers, even from 
outside government circles, into the discussion. 
In the biggest and most developed countries, most decisions on the development of 
tourism are taken locally (regions and municipalities), which means that the local 
authorities play a key role in implementing national policies and development 
strategies. However, in the past, operations other than national projects tended to 
favour cooperation at regional level rather than opting for the most effective level of 
execution where it would have been easier to get through to those most directly 
concerned and measure the results. 
9 For example, the chief product of many developing countries, island states in particular, is beach and 
sunshine holidays, still the largest part of the international tourism market. 
12 
3. THE COMMUNITY AND SUSTAINABLE DEVELOPMENT OF 
TOURISM IN THE DEVELOPING COUNTRIES: OBJECTIVES 
AND MEANS 
3.1. Fostering the sustainable development of tourism 
EC support for tourism must have as its goal the sustainable development of the sector 
in the light of Community measures {acquis communautaire) affecting tourism10 and 
be informed by the general objectives of development cooperation as set out in Article 
130u of the Maastricht Treaty. They are designed to reduce poverty, achieve 
sustainable economic and social development, integrate the developing countries into 
the global economy and further the aim of respecting human rights and fundamental 
freedoms. 
The development of the tourism sector, given its importance in international trade and 
in the exportation of services, can make a major contribution to integrating the 
developing countries into the world economy. 
The development of tourism can also contribute to the sustainable economic and 
social development of the recipient country provided the underlying objectives go 
beyond simply increasing the number of beds, tourist arrivals and tourist revenues at 
any price. Tourism's contribution to sustainable development will be contingent on: 
(a) the ability of governments to plan and manage the development of tourism taking 
account of all the economic, social, cultural and environmental aspects and the 
potential drawbacks and (b) the industry's commitment to adhere to the principles and 
practices of sustainable development in an open and competitive market. 
EC policy for the development of tourism must mesh with Article 6 of the consolidated 
version of the Amsterdam Treaty according to which the protection of the 
environment must be integrated into the Union's other policies in order to promote 
sustainable development. 
A well-run, socially viable industry that generates revenue and is mindful of the needs 
of the environment could help alleviate-poverty by offering all those entering the 
industry greater scope for better jobs, training and career development while 
expediting the building of infrastructure, facilities and services aimed at improving 
the host population's living conditions. 
With a view to fulfilling its development objectives the EC's goal should be to help 
create the conditions for maximising the contribution of tourism to the economic and 
social development of the host country and minimising any actual or potential 
deleterious effects. 
Tourism is an ideal test-bed for implementing and monitoring the principles of 
sustainable development but the EC's efforts to develop tourism should not be 
10 For an analysis see the Commission's report to the Council on Community measures affecting 
tourism (COM(97)332, 2.7.1997). 
13 
confined to "alternative" tourism but should also promote a genuine commitment on 
the part of the public authorities and the tourism industry in general to pursue viable 
policies compatible with environmental and social considerations. 
In this connection donors should apply to tourism the Agenda 21 action programme 
on sustainable development adopted by the United Nations Conference on 
Environment and Development at the 1992 Rio de Janeiro Earth Summit. 
Programmes relating to tourism should therefore help ensure that initiatives in that 
sphere employ resources sustainably (cutting down on excess consumption and waste, 
promoting non-polluting forms of energy and transport, conserving natural and 
cultural diversity), help integrate the sector into overall planning and, where 
appropriate, support local economies. The impact on the environment of other types of 
activity such as industry, agriculture or transport should also be taken into account as 
they can have a significant bearing on the quality of the tourist product. 
On the specific problem of sex tourism involving children, in view of the sheer scale 
of the phenomenon, it is necessary to help eradicate it through joint action by the 
authorities and tourist industry professionals. Aware of the scale and gravity of the 
problem and the mounting concern over this scourge" shown by public opinion in 
Europe, and by travellers and the tourist industry in particular, the Commission 
adopted on 27 November 1996 a communication on combating child sex tourism.12 
This document provides a framework for Community action, placing it in a medium 
to long-term perspective. The overall strategy set out in the communication is two-
pronged: 
first, to reduce demand in cooperation with the tourist industry and the NGOs 
concerned (coordination of information and awareness campaigns, strengthening the 
industry's codes of conduct and self-regulatory mechanisms, etc.) 
second, to attack the sources of supply at the tourist destinations by all 
appropriate means, including Community external relations and development 
cooperation policies. The report the Commission plans to table at the end of 1998 on 
the implementation of the measures envisaged and the progress made in combating 
child sex tourism should further clarify the choice of intervention strategies to adopt. 
The need for a specific measure in this field to complement action to support the 
tourist industry should be envisaged once national and regional strategies have been 
framed. Efforts should continue to ensure that this matter is addressed as part of a 
structured political dialogue with the countries most affected, particularly at regional 
level. 
3.2. Help for public authorities in their planning, management and follow-up tasks 
3.2.1. Establishing a legal and institutional framework 
This support should encourage governments to: 
" See "The opinion of Europeans on child sex tourism", summary of the results of a Eurobarometer 
survey, July 1998. 
12 COM(96) 547, 27.11.1996. 
14 
measure the performance of the tourist industry and gauge the actual and potential 
effects at the economic, social and environmental levels; 
carry over the analysis into the framing or implementation of multiannual, 
targeted tourism development strategies with clear, realistic and measurable 
results; 
establish the appropriate institutional and methodological framework including 
legislation, rules and regulations and follow-up and monitoring mechanisms to 
oversee implementation of the strategy, its consistency with general and local 
development guidelines and any adverse effects. 
In the absence of an overall approach and a clearly-defined strategy for the 
development of tourism in the beneficiary countries, assistance should focus, first of 
all, on helping governments at the project design phase, in defining objectives and in 
choosing models for the development of tourism, selecting the main target markets 
and identifying weaknesses in the products directed at those markets and offering 
them the required services. To ensure harmonisation with the national tourism 
development strategy, support should comprise improving competence in the 
assessment of large development projects initiated by big investment groups. 
Particularly in countries where tourism is, or is set to become, a leading economic 
sector, overall national development policies and strategies must mesh with the 
priorities and objectives set for tourism. -As a consequence, the various government 
bodies dealing with the development of tourism should get together to share 
responsibilities, work in partnership and set up interdisciplinary committees or boards. 
Secondly, the EC should help governments in applying the strategy adopted, in 
putting in place a number of policies, regulations and action plans concerning, for 
example, legislation relating to land use, the tourism industry, the protection and 
promotion of investment, the establishment of environmental standards and to the 
range of public activities needed to implement a social and technical infrastructure 
commensurate with the needs of sustainable development of tourism. Where these 
policies and strategies already exist, the support given by donors should serve to 
assess the extent to which they are consistent with their own development objectives 
and, where appropriate, help implement them. 
National regulations should include arrangements to provide a minimum threshold of 
safety and quality standards for tourist services. 
It is also up to governments to improve the environment for businesses by eliminating 
technical and legal obstacles to the competitiveness of the private sector or by 
reviewing any regulations impeding fair and open competition in the tourism sector 
while tightening environmental protection and workplace regulations. 
EC support in this field will consist chiefly of technical assistance to public 
authorities, to give them the means to carry out their planning and regulatory tasks 
and stimulate private initiative. For this, it will be necessary to put in place 
mechanisms to monitor the impact of the initiatives taken. 
15 
There is still much to be done in the developing countries and the experience amassed 
by the EC and its member states in this field could prove extremely useful here. 
3.2.2. Support for developing human resources 
One of the main advantages of tourism as a sector that fosters economic development 
is its job-creation potential. As it is a service sector, where the direct relationship 
between customers and staff is a key factor, the quality of its human resources 
increasingly represents a crucial competitive advantage. 
On the assumption that skilled people have the best jobs, careers and business 
opportunities, investing in these human resources is vitally important for the 
development of sustainable tourism at both the social and economic levels. The EC's 
contribution should consist of significant support to assist governments in framing 
and implementing a "human resources development plan" for tourism. 
Priority should go to those countries where training in the tourism sector is 
non-existent or those where training provision needs to be improved. Action should 
include training in business management* tourist planning, application of information 
technology, economic and environmental impact analysis and management of the 
natural and cultural heritage. Training of instructors should always be considered a 
priority because of its knock-on effect and the number of people to be trained. 
3.2.3. Public heritage and infrastructure 
The public authorities have a key role to play in investment in the development of 
tourism since, alongside a policy to privatise certain facilities, they still provide most 
of the basic infrastructure and public services needed for the industry to function. 
They are also responsible for managing the protection of public areas, in particular the 
natural and cultural heritage generally viewed as tourist attractions. The private sector 
rarely has the technical and financial resources to restore or maintain urban zones, 
cultural heritage sites and natural reserves. This government investment function, 
which should be underpinned by regional planning and the conservation and 
enhancement of the country's heritage,- can be backed by the EC provided the 
environmental and socio-cultural aspects of the projects are taken into account. 
3.2.4. Information and commercial organization 
Although tourism is an activity conducted by the private sector, public authorities are 
actively involved in marketing, as the promotion of tourist destinations also helps 
promote the "country". Governments hav.e also played a role in gathering data on the 
market and monitoring trends in potential or real demand. In their promotion drive, 
governments have traditionally taken charge of the tourist information services in the 
recipient countries which dispense "on the ground" information and advice on the 
facilities available. 
16 
Recently, however, with the overhaul of public administrations along more cost-
effective lines and with the need to make the management and marketing of tourism 
more professional, governments have started to involve the private sector in the 
planning and implementation of marketing and communication activities on a 
cost-sharing basis. 
In the light of the above, and as the repeated funding of promotional activities has led 
in the past to heavy dependence on donors and created substitution effects, it is 
proposed that the EC's contribution in this field be geared exclusively to technical 
assistance aimed at helping the countries to establish new kinds of tourism promotion 
bodies and tourist information centres involving the private sector, to create the 
conditions for enhancing the competence of staff in framing national commercial 
strategies and applying new communication technologies. EC direct investment in the 
marketing of tourist products in the developing countries will not be allowed. 
3.3. Consolidating the tourist industry in-an open and competitive market economy 
3.3.1. Encouraging cooperation in the private sector 
Tourism undertakings are often small and widely scattered, with their activities 
spanning several sub-sectors: this fragments the profession and hampers dialogue 
between the industry's various branches and professions so that government often 
finds it hard to see the big picture and satisfactorily satisfy the legitimate needs of 
these firms. As the industry has many sub-sectors, the creation of private sector driven 
national tourism boards could be encouraged and serve as a platform for permanent 
dialogue and consultation for professionals and an interface with the public 
authorities. 
As the industry boasts a vast number of small businesses (SMEs), the associations 
representing the sector as a whole could play a key role in helping their members 
improve their standards and performance. EC support to recognised professional 
bodies in this field might consist of training competent personnel and strengthening 
institutions to help them become service-providing bodies able to offer their members 
innovative and value-added services. They could also be given technical assistance to 
help them mount programmes aimed at improving the industry's performance overall 
or in specific sub-sectors such as in-house training programmes, quality programmes 
for tourist enterprises, programmes to promote schemes compatible with the 
environment and to boost cooperation on product development and enhancement. 
3.3.2. Direct support for SMEs 
SMEs possess enormous potential to create jobs both for employees or the 
self-employed, providing the local population with greater opportunities and helping 
to make greater inroads in reducing poverty. Incoming tourism, generated by the use 
of the tourist destination's take-up capacity have a knock-on effect in terms of extra 
business for SMEs and microenterprises in the form of crafts, small shops, local 
transport and the food industry. Opportunities for creating and developing SMEs in 
the tourist and allied industries could be bolstered through the various instruments 
17 
deployed in support of the private sector as a whole instead of creating separate 
instruments. 
4. BASIC PRINCIPLES FOR IMPLEMENTING THE STRATEGY 
4.1. A rigorous approach tailored to the complexity of tourism development 
4.1.1. Defining the support framework 
In principle the Community should support the development of tourism in any 
developing country benefiting from a cooperation agreement which includes the 
sector, and where tourism is, or could become, a key economic sector. This excludes 
countries where citizens' safety or health is threatened. However, the type and scale of 
this support will vary according to how far the country's tourist industry has 
developed. 
Future measures should be based on a sectoral analysis aimed at identifying 
shortcomings in terms of competitiveness and the sustainability of the host country's 
development and assessing whether an aid request is justified in relation to other 
priority sectors. Guidelines should be drawn up so as to ensure that the sectoral 
analysis and project identification take place using the same criteria. 
For each destination, the following should be defined from the outset: 
• tourism's development level and its integration into the economy at large, 
• how the sector's development compares with the products available, the markets 
reached and competitiveness in terms of value for money, 
• the degree of involvement of the public and private sectors, their level of 
commitment, reliability and level and method of cooperation, 
• the economic, social and environmental impact of the sector's development and 
the risks that new developments might pose, 
• the existence of a viable and up-to-date tourist development strategy and policies 
aimed at sustainable development, 
• any obstacles to the development of sustainable tourism. 
Where potential destinations are concerned, the sectoral analysis should also establish 
the degree of potential, with hard evidence and without raising undue expectations. 
Tourism is no panacea: not all countries or regions have the same potential or capacity 
to develop a competitive tourism industry that can contribute effectively to the 
development process. 
4.1.2. Targeted support programmes 
Given the different levels of development of tourism in the developing countries and 
the sector's complexity, donors' support programmes have to be coherent and tailored 
to local needs. There is no set model and each operation should be defined in 
accordance with the different needs and problems in the light of the analysis referred 
to below. 
IK 
To avoid a recurrence of difficulties encountered previously in the management of 
overly ambitious tourism projects comprising various objectives and elements, and to 
make them more effective, the support programmes should as a rule be limited in (a) 
scope, (b) duration and (c) geographical area. 
The level of development of tourism in the destination country or region could, as a 
guide, help determine the most suitable type of support. 
Where national programmes are concerned, countries with a developed tourism 
industry and a mature product will require specially tailored operations geared to 
dealing promptly with precise needs and weaknesses as any delays would render them 
useless. Such operations could take the shape of (a) short assignments^ for example to 
redefine policies and strategies, update and develop regulations and overhaul a 
training system, (b) more comprehensive schemes focusing on a single facet of tourist 
development such as infrastructure, training programmes, quality improvement plans, 
or the establishment of environment-friendly schemes, (c) support for the 
development of specific products and markets, i.e. a segment-based approach (e.g. 
cultural or diving holidays). 
On the other hand, the less developed countries are likely to need a more 
comprehensive approach in order to establish an overall framework for the sector to 
be developed. Besides helping to develop infrastructure the relevant support 
programmes could address a range of aspects starting with the establishment of policy 
priorities and strategies. They could be complemented by measures relating for 
instance, to access facilities for travellers, the protection of tourist heritage, 
regulations concerning tourist firms, the development of human resources, the 
improvement of tourists' safety, lifting obstacles to the development and functioning 
of the private sector and its professional bodies. The success of this type of project 
hinges on a long-term commitment on the part of the donors. 
In some cases more geographically focused aid could produce better results. This 
principle, based on experience, is applied by donors in different fields and is 
particularly crucial in the field of tourism, meeting the need to carry out projects 
schemes at levels other than national level, in the interests of sustainable 
development. This being so, support measures at district or municipality level could 
be envisaged as part of specific pilot projects. 
4.2. Involving the players 
4.2.1 .Promoting a public administration/private sector partnership 
Tourism depends heavily on other sectors and requires a multidisciplinary and 
interdepartmental approach to the formulation of policies at government level, an 
approach which is often lacking in the developing countries. It is essential that the 
incorporation of the objective of sustainability be reflected in the involvement of the 
authorities responsible for natural and cultural heritage in tourist development 
19 
policies. 
Depending on the ptob'ems and needs highlighted by the sectoral analysis, the public 
administration bodies most directly concerned, should be Identified for each of the 
projects and consulted at the design stage. They should also be considered as 
potential interlocutors for specific projects or parts of programmes. However, future 
projects should not be channelled via national tourist administrations alone, although 
their opinion and support is necessary in all projects relating to tourism. 
Exchanges of information and close consultations between public authorities and 
private sector associations could produce a form of synergy in defining and 
implementing policies and strategies that is acceptable to both sides provided there is 
no clash of interests between them and the beneficiaries. As for the appropriate 
opposite numbers, studies show better results were obtained when the aid was 
channelled through existing bodies with their own objectives, work programmes and 
track record than by creating new bodies which tend to become donor-dependent. 
Future schemes should therefore support viable existing bodies. 
4.2.2. Ccfinancing agreements 
Closer invoIveîrieïLi'. of the beneficiaries in the project design and implementation 
phases produces a higher degree of "ownership" and cost-sharing should be a 
principle in. all types of measures right from the'preparation/identification phase. 
It would also be possible to have the beneficiaries contribute lo the costs of EC 
programmes and projects so as to increase the prospects of self-financing that would 
continue once the EC support programme ended. This aspect should be taken into 
consideration at the project design phase and evaluated once the project has been 
carried out. 
4.2.3. Grassroots action to support local initiatives 
The need to involve all the players and to back initiatives by regional authorities and 
municipalities, necessitated by the nature of tourism development, is consonant with 
the principles on decentralised cooperation promoted by the Commission,13 as set out 
in Article 251 of the Lomé Convention, which have already been applied to several 
programmes financed by the European Development Fund in other areas. 
This entails a bottom-up approach aimed at supporting moves to decentralise the 
administration, involve the economic and social players and strengthen the role of 
civil society associations. 
Accordingly, future support programmes should, where that is deemed more effective, 
involve: 
13 See the two Council regulations adopted on 17 July 1998 (Nos 1658/98 and 1659/93) on 
cofinancing of NGO schemes and decentralised cooperation respectively. 
20 
- enhancing the know-how of local administrations, 
- supporting local initiatives embracing the various aspects of tourism development, 
- consolidating the role of civil society. 
4.3. Regional cooperation 
Regional cooperation could be useful in developing tourism, in particular when it 
leads to the exchange of good practice and experience between the partners. It might 
prove particularly suitable for small countries. Generally speaking, projects should be 
envisaged in fields (a) where economies of scale can be achieved (such as statistics, 
training and marketing), (b) where joint solutions to shared problems can be applied 
(legislation, simplification of administrative procedures, environmental protection, 
industrial standards, protection of human rights) and (c) where shared interests in the 
field of product development can lead to profitable solutions for the countries 
concerned (such as the Maya in Central America). Studies have shown that a regional 
approach should focus more on a common aspect rather than bringing together several 
types of different measures. A regional programme should not simply superimpose 
several national projects. Purely national components are dealt with more effectively 
by the destination country as part of programmes framed at national level 
5. CONSISTENCY, COORDINATION AND COMPLEMENTARITY 
The EC's strategy to stimulate tourism in the developing countries should fit in with 
other strategies and policies implemented by the Commission and be based on the 
Community measures (acquis communautaire) affecting tourism. To that end, the 
strategy should be consistent with all the Community measures affecting tourism as 
set out in the relevant Commission report to the Council.14 
As tourism is carried out principally by the private sector, the strategy is consistent 
notably with the draft communication on EC aid for the development of the private 
sector in the ACP countries, the content of which applies to the tourism sector. 
A strategy to support tourism in the developing countries should therefore chiefly take 
account of the recommendations set out in Chapter 3 on the complexity and special 
nature of the sector. 
As many of the operations carried out by donors in the tourism sector were ad hoc, it 
would be in the EC's interests if it played a leading role in this field as previous 
support programmes and evaluations have given it substantial know-how. It also 
happens to be the principal donor in this sector. 
în all developing countries where tourism can be. considered a motor for economic 
growth, and in particular in those whose economics depend heavily on it, the EC can 
show the way in the rational development of tourism that (osiers the overall 
development of the destination countries. It should carry out evaluations, identify 
14 COM(97)332, 2.7.1997. 
support fields, coordinate dialogue with the main players and encourage coordination 
of policies. 
It is plain that the EC, the EIB and EU member states should make a concerted effort 
to establish closer cooperation in drawing up programmes that can be mutually 
reinforcing. 
Conclusion 
This paper advocates the adoption of a comprehensive but targeted approach in EC 
support measures aimed at stimulating tourism in the developing countries. Tourism 
is a complex and fragmented sector made up of several sub-sectors allied to other 
sectors of the economy. In the developing countries, different stages of development 
and different products raise a variety of problems which must be resolved in a 
different way. Moreover, tourism is a dynamic activity which unfolds in an 
ever-changing environment. 
There is therefore no typical problem or typical solution: support programmes should 
be tailored to each country and to its specific needs at any given moment. 
In the developing countries, an overall approach should be adopted at the design phase 
so that the problems and then causes can be properly weighed up. It would not be 
realistic to tackle all the problems at the same time with the same programme. 
The EC's efforts should above all seek to ensure that the principles of sustainable 
development, that respect the social, cultural and environmental background, form 
part of tourism development strategies and schemes and that the positive effects of 
tourism on growth and employment are maximised. 
Support given to governments to enable them to fulfil their planning, administrative 
and monitoring functions with a view to sustainable development should comprise: 
the establishment of a legal and institutional framework, support for the development 
of human resources and public infrastructure, the protection and development of the 
natural and cultural heritage and technical assistance for modernising the methods and 
instruments for marketing the destination country. 
Support will be given to the private sector at two levels: improving the partnership 
between firms and branches of activity connected with tourism and through 
cross-disciplinary measures for SMEs in general. 
This support will be given chiefly through targeted measures, avoiding dispersion of 
effort and with the active participation of the various actors concerned in the 
development of tourism. Partnership between the public and private sector will be 
encouraged and involvement of other players at local level, such as provincial and 
local authorities, but also civil society, which is the most exposed to the adverse 
effects of unfettered growth. 
22 
ISSN 0254-1475 
COM(98) 563 final 
EN 16 11 09 08 
Catalogue number : CB-CO-98-572-EN-C 
[SBN 92-78-39695-8 
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