The FINANCIAL — Despite its wide-reaching socio-economic impacts, tourism still receives limited attention as a tool for development. On the occasion of the Third International Conference on Financing for Development (Addis Ababa, Ethiopia, 13-16 July), UNWTO calls for higher support for tourism in international financing for development flows to maximize the sector´s contribution to sustainable development across the globe.
Tourism’s underrepresentation in international financing for development flows remains a critical hurdle to fully deploy its development potential. Despite being a high impact economic activity, a major job generator and key export sector accounting for 6% of total world trade, tourism receives only 0.78% of the total Aid for Trade (AfT) disbursements and a mere 0.097% of the total Official Development Assistance (ODA), according to UNWTO.
As world leaders gather at Third International Conference on Financing for Development, UNWTO Secretary-General Taleb Rifai recalled that tourism has been identified by half of the world´s Least Developed Countries (LDCs) as a priority instrument for poverty reduction.
“For an increasing number of developing countries tourism means jobs, poverty eradication, community development, and the protection of natural and cultural heritage. Yet, in order to maximize tourism’s contribution to the development objectives, it is critical to address the disparity between the sector´s capacity to foster development and the low priority it has been given so far in terms of financial support in the development cooperation agenda”, said Mr. Rifai.
Tourism’s cross-cutting nature and multiple links to other economic sectors positions it as an effective multiplier in global development strategies as tourism often provides one of the few competitive options for developing countries to take part in the global economy. The sector is crucial for LDCs, where it accounts for 47% of the total exports of services, and was one of the main contributors to the graduation of Botswana, The Maldives and Cabo Verde from their previous LDC status.
“2015 is the year for action. As we move forward to adopt a new sustainable development agenda, we have a unique opportunity to raise the level of assistance in tourism to further harness its vast potential for stimulating green growth and inclusive development worldwide, particularly for the countries most in need”, concluded Mr. Rifai.
Over recent years, tourism’s ability and potential to drive sustainable development has been increasingly recognized – tourism is identified by half of the world´s LDCs as a priority instrument for poverty reduction and is one of the six initial programmes of the 10-Year Framework of Programmes on Sustainable Consumption and Production Patterns (10YFP) designed to accelerate the shift towards sustainable consumption and production worldwide – yet the levels of financing for development in tourism are still comparatively low.
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