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
Date: 1998-10-14
Institutions: European Commission
Subjects: cooperation policy, developing countries, development aid, sustainable development, tourism

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 

1. TOURISM  AS A FACTOR  IN DEVELOPMENT 

l . l.  TllE GROWTH Ol-TOURISM IN  I in:  WORLD  ECONOMY:  AN  OPPORTUNITY 
1.2 WlDF  VARIATIONS FROM COUNTRY TO COUNTRY 
1.3.  COMMON  PROBLEMS:  STIFFER COMPETITION  AND  A POTENTIALLY  ADVERSE  IMPACT 

2. LESSONS OF THE PAST 

2.1  CONTRIBUTION  OF THE  EC  AND  THE  MEMBER  STATES 
2.2  A  WEAK  INSTITUTIONAL  FRAMEWORK  AND PUBLIC-PRIVATE  SECTOR  PARTNERSHIP 
2.3  OPERATIONAL  CONCLUSIONS  OF THE  SUPPORT  PROGRAMMES 

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3. THE COMMUNITY  AND THE SUSTAINABLE DEVELOPMENT OF TOURISM  IN THE 
DEVELOPING  COUNTRIES: OBJECTIVES AND MEANS 

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3 . 1.  FOSTERING THE SUSTAINABLE DEVELOPMENT OF TOURISM 

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3.2.  HELP  FOR  PUBLIC  AUTHORITIES  IN THEIR  PLANNING,  MANAGEMENT  AND  FOLLOW-UP  TASKS 

3.2.1.  Establishing a legal and institutional framework 
3.2.2. Support for  developing human resources 
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3.2.3. Public heritage and infrastructure 
3.2.4. Information and commercial organization 

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3.3.  CONSOLIDATING  THE  TOURISM  INDUSTRY  IN AN OPEN  AND COMPETITIVE  MARKET  ECONOMY  .... 17 
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3.3.1. Encouraging cooperation in the private sector 
3.3.2. Direct support for  S M Es 

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 
4.1.2. Targeted support programmes 

4.2.  INVOLVING  THE  PLAYERS 

4.2.1. Promoting a public  administration/private sector partnership 
4.2.2. Cofinancing agreements 
4.2.3. Grassroots action to support local initiatives 

4.3.  REGIONAL  COOPERATION 

5. CONSISTENCY, COORDINATION  AND COMPLEMENTARITY 

CONCLUSION 

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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 

international  journeys  (excluding 

That  same  year  earnings  from 
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 
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 

for 

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 
insecurity,  deteriorating  working  conditions, 
the  cultural  and  social  fabric  (job 
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 
the  various 
administrative  levels  of  competence  and  ensuring  coordinated  action  among  the 
various players involved. 

regional  planning, 

in  coordinating 

framework  and 

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 
infrastructure. 
variety  of  fields  such  as  security,  health  and  the  bulk  of  basic 
Responsible  management  of 
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. 

the  natural  and  cultural  heritage  on  which 

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, 
In  this  respect,  the  institutional  framework  is 
compared  with  similar  destinations. 
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 
the  needs  of  the  local  population  and  the  special  features  of  the 
of  the  market, 
sustainable 
destination.  This  cooperation  will  also  help  attune 
development 

to  that  of the  sector's  competitiveness. 

the  principle  of 

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 
promotion  activities  in origin  markets 

tourism 

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 
development  of the  tourist  destination  have  been  neglected 

social  aspects  affecting 

environmental 

and 

the 

sustainable 

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 
fragile 
islands  have  not  as a rule  been  broached  as part  of tourist  projects. 

issues  affecting  certain  small,  highly 

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 
interface  with  the  private  sector  or 
they  are  incapable  of  creating  a  coherent 
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 
the 
version  of 
environment  must  be  integrated  into  the  Union's  other  policies 
in  order  to  promote 
sustainable  development. 

the  Amsterdam  Treaty  according 

the  protection 

to  which 

of 

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 
the 
for  tourist  enterprises,  programmes  to  promote  schemes  compatible  with 
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, 
the 
or 
development  of  specific  products  and  markets,  i.e.  a  segment-based  approach  (e.g. 
cultural or diving holidays). 

the  establishment  of  environment-friendly 

schemes,  (c)  support 

for 

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: 
between  firms  and  branches  of  activity  connected  with 
cross-disciplinary  measures  for  SMEs  in  general. 

improving  the  partnership 
through 

tourism  and 

This  support  will  be  given  chiefly  through  targeted  measures,  avoiding  dispersion  of 
in  the 
effort  and  with  the  active  participation  of  the  various  actors  concerned 
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 

Office  for Official  Publications of the European  Communities 

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