Thursday, June 17, 2010

Pro-poor tourism: A poverty reduction strategy

While responsible ecotourism and other sustainable
tourism strategies may bring significant socio-economic
benefits to host communities, they are not necessarily
aimed at poverty alleviation. Given that the United
Nations Millennium Declaration19 has placed poverty at
the centre of the international development agenda, it can
be argued that sustainable tourism development should
go beyond the promotion of broad socio-economic development
and give greater priority to poverty reduction.
This priority shift would also address a somewhat
ignored recommendation of the seventh session of the
Commission on Sustainable Development which, inter
alia, urged Governments “to maximize the potential of
tourism for eradicating poverty by developing appropriate
strategies in cooperation with all major groups, and
indigenous and local communities” (see UN, 1999c).
A pro-poor tourism (PPT) approach differs from
ecotourism and other sustainable tourism strategies in
that its overriding goal is to deliver net benefits to the
poor.
While PPT and ecotourism may have some similar
objectives, the key difference is that poverty reduction
is the core focus of the PPT approach, rather than a
secondary component of a mainly environmental sustainability
strategy. In other words, although environmental
protection remains an important PPT goal, the quality of
the environment in which targeted poor groups live is
only one part of a broader poverty reduction strategy.
There are several reasons why tourism development
could be a particularly effective tool of poverty
reduction. First, as discussed earlier, tourism offers considerable
employment opportunities for unskilled labour,
rural to urban migrants and lower-income women.
Second, there are considerable linkages with the informal
sector, which could generate positive multiplier effects to
poorer groups that rely on that sector for their liveli-
8 DESA Discussion Paper No. 29
hoods. Third, tourism tends to be heavily based upon the
preservation of natural capital—such as, wildlife and
scenery—and cultural heritage, which are often “assets
that some of the poor have, even if they have no financial
resources” (Ashley et al., 2001:2).
It is increasingly realized that promoting greater
community participation in tourism development not
only provides stronger incentives to conserve natural
capital,21 but can also lead to a more equitable sharing of
benefits and thus greater opportunities for poverty alleviation.
But while ecotourism and PPT both aim to increase
community participation in general, PPT also goes
beyond this goal in that it includes specific mechanisms
to enhance the participation of and opportunities for the
poorer segments of society. Three key components of the
PPT approach are:
(a) improved access to the economic benefits of
tourism by expanding employment and business
opportunities for the poor and providing adequate
training to enable them to maximize these opportunities;
(b) measures to deal with the social and environmental
impact of tourism development, particularly
the above-mentioned forms of social exploitation,
as well as excessive pressure on natural
resources, pollution generation and damage to
ecosystems; and
(c) policy reform, by enhancing participation of the
poor in planning, development and management of
tourism activities pertinent to them, removing some
of the barriers for greater participation by the poor,
and encouraging partnerships between government
agencies or the private sector and poor people in
developing new tourism goods and services.
Some of these PPT concepts are beginning to be
implemented in several developing countries, such as
Ecuador, Namibia, Nepal and Uganda. In Namibia, for
example, the implementation of a PPT approach to the
development and management of the country’s community-
based tourism segment appears to have made a significant
contribution towards poverty reduction.
Several studies have shown that financial returns
from community-based natural resource management and
tourism ventures in Namibia usually exceed their investments
and are thus a viable option for generating sustainable
economic returns, while promoting environmental
conservation and cultural traditions in rural areas (see,
for example, Barnes et al., 2002). There is now evidence
of a successful introduction of the PPT approach by the
Namibia Community-based Tourism Association
(Nacobta), a non-profit organization that supports poor
local communities—including small entrepreneurs with
inadequate skills or access to financial resources—in
their efforts to develop tourism enterprises in the country
(see Nicanor, 2001).
Nacobta supports its members at both micro and
macro levels, mainly through the provision of grants,
loans, training, capacity building in the areas of institutional
development and marketing training, as well as in
negotiations with relevant government agencies and the
mainstream tourist industry. Nacobta is explicitly propoor
not only because it represents the poorest segment
of the country’s tourism industry, but also because most
of its members live on communal land areas, where the
majority of the inhabitants have an average per capita
income of less than US$1 a dayand depend on subsistence
agriculture. One of the main objectives of Nacobta
is “to raise the income and employment levels of these
areas through tourism, in order to improve the living
standards of people in communal areas” (Nicanor,
2001:5).
The pro-poor tourism approach of Nacobta is thus
different from conventional tourism because members of
local communities both own and manage the tourism
enterprises, whose economic benefits flow directly into
community funds or as formal sector wages, temporary
remuneration to casual labourers and income to informal
sector traders. There is also evidence that the financial
returns from most community-based tourism enterprises
supported by Nacobta “has changed their communities
from being poor or very poor to being better off”
(Nicanor, 2001:5).

The growing importance of ecotourism

The WSSD Plan of Implementation makes particular
reference to activities carried out in conjunction with
the 2002 United Nations International Year of
Ecotourism,amongst other international activities, in
the implementation of its sustainable tourism goals. The
International Year of Ecotourism offered an ideal opportunity
not only to review ecotourism experiences around
the world, but also to promote worldwide recognition of
the important role of sustainable tourism in the broader
international sustainable development agenda. There is,
however, a crucial distinction between ecotourism and
sustainable tourism: while the former can be broadly
defined as an alternative, nature-based type of tourism,
sustainable tourism calls for adherence to the abovementioned
sustainability principles in all types of
tourism activities and by all segments of the tourism
industry.
Ecotourism is still a relatively small segment of the
overall tourism sector. At the same time, it is one of the
fastest growing tourism segments and further rapid
7 A New Approach to Sustainable Tourism Development
growth is expected in the future. There is, however, little
agreement about its exact meaning because of the wide
variety of so-called ecotourism activities provided by
many different suppliers (both international and domestic)
and enjoyed by an equally broad range of diverse
tourists. Its main features include (a) all forms of nature
tourism aimed at the appreciation of both the natural
world and the traditional cultures existent in natural
areas, (b) deliberate efforts to minimize the harmful
human impact on the natural and socio-cultural environment
and (c) support for the protection of natural and cultural
assets and the well-being of host communities.
Consensus on some of these issues was reached
during the World Ecotourism Summit—held in Québec
City (Canada) in May 2002—although many questions
need to be explored further (see UNEP, 2002b). The
Québec declaration stresses that, if carried out responsibly,
ecotourism can be a valuable means for promoting
the socio-economic development of host communities
while generating resources for the preservation of natural
and cultural assets. In this way, ecologically fragile areas
can be protected with the financial returns of ecotourism
activities.
Ecotourism has been particularly successful in
attracting private investments for the establishment of
privately owned natural parks and nature reserves in an
increasing number of developing countries, such as Costa
Rica, Ecuador, Malaysia and South Africa. Many such
reserves are well managed, self-financed and environmentally
responsible, even when profit remains the main
motivation behind the operation of a private reserve (see,
for example, Langholz et al., 2000). In this way, the
tourism industry can help to protect and even rehabilitate
natural assets, and thus contribute to the preservation of
biological diversity and ecological balance.
However, if not properly planned, managed and
monitored, ecotourism can be distorted for purely commercial
purposes and even for promoting ecologicallydamaging
activities by large numbers of tourists in natural
areas. Given their inadequate physical infrastructure
and limited capacity to absorb mass tourism, the fragile
land and ocean ecosystems of many developing countries
can be literally overwhelmed by large numbers of
tourists. It is increasingly recognized, therefore, that ecotourism
activities can also cause adverse ecological
impact, particularly if they are not properly managed or
if they involve tourist numbers beyond the local carrying
capacity (Gössling, 1999).
Furthermore, even when ecotourism activities are
carried out in a responsible manner, they tend to give
priority to environmental protection, mainly by focusing
on providing financial incentives for environmental
conservation by local communities. Similarly, while
broader sustainable tourism strategies contain economic
and social objectives, these objectives tend to be
complementary to a central focus on environmental sustainability.
Greater priority should thus be given to
socio-economic objectives in general, and to poverty
reduction in particular.

Sustainable tourism development

Countries and regions where the economy is driven
by the tourism industry have become increasingly concerned
with the environmental, as well as the socio-cultural
problems associated with unsustainable tourism. As
a result, there is now increasing agreement on the need to
promote sustainable tourism development to minimize its
environmental impact and to maximize socio-economic
overall benefits at tourist destinations. The concept of
sustainable tourism, as developed by the World Tourism
Organization (WTO) in the context of the United Nations
sustainable development process, refers to tourist activities
“leading to management of all resources in such a
way that economic, social and aesthetic needs can be fulfilled
while maintaining cultural integrity, essential ecological
processes, biological diversity and life support
systems”.

Environmental threats to tourism

In many mountain regions, small islands, coastal
areas and other ecologically fragile places visited by
tourists, there is an increasing concern that the negative
impact of tourism on the natural environment can ultimately
hurt the tourism industry itself. In other words,
the negative impact of intensive tourism activities on the
environmental quality of beaches, mountains, rivers,
forests and other ecosystems also compromise the viability
of the tourism industry in these places.
There is now plenty of evidence of the ‘life-cycle’
of a tourist destination, that is, the evolution from its
discovery, to development and eventual decline because
of over-exploitation and subsequent deterioration its
key attractions. In many developing and developed
countries alike, tourism destinations are becoming
overdeveloped up to the point where the damage caused
by environmental degradation—and the eventual loss of
revenues arising from a collapse in tourism arrivals—
becomes irreversible.
Examples of such exploitation of ‘non-renewable
tourism resources’ range from a small fishing village in
India’s Kerala state—which saw its tourist sector collapse
after two decades of fast growth, because inadequate
disposal of solid waste—to several places in the
industrialized world, such as Italy’s Adriatic coast and
Germany’s Black Forest.14 It can also be argued that environmental
pollution and urban sprawl tend to undermine
further tourist development in major urban destinations
in developing countries, such as Bangkok, Cairo and
Mexico City.
In addition, tourism in many destinations could be
particularly threatened by external environmental
shocks, notably the potential threat of global warming
and sea-level rise. Significant rises in sea level could
cause serious problems to tourism activities, particularly
in low-lying coastal areas and small islands. Global
warming is also expected to increase climate variability
and to provoke changes in the frequency and intensity of
extreme climate events—such as tropical windstorms and
associated storm surges and coastal flooding—that may
threaten tourism activities at certain destinations (see
UN, 2001b, ch. VII).

Damage to ecosystems

Besides the consumption of large amounts of natural
resources, the tourism industry also generates considerable
waste and pollution. Disposal of liquid and solid
waste generated by the tourism industry has become a
particular problem for many developing countries and
regions that lack the capacity to treat these waste materials.
Disposal of such untreated waste has, in turn, contributed
to reducing the availability of natural resources,
such as freshwater.
Apart from the contamination of freshwater from
pollution by untreated sewage, tourist activities can also
lead to land contamination from solid waste and the contamination
of marine waters and coastal areas from pollution
generated by hotels and marinas, as well as cruise
ships. It is estimated that cruise ships in the Caribbean
Sea alone produced more than 70,000 tonnes of liquid
and solid waste a year during the mid-1990s (UN,
1999a). The fast growth of the cruise sector in this and
other regions around the world has exacerbated this problem
in recent years. In fact, it is sometimes argued that
the rapid expansion of cruise tourism calls for “the
enforcement of an environmental protection ‘level playing
field’ across the world’s oceans and between the
world’s maritime tourism destinations” (Johnson, 2002).
In addition, relatively high levels of energy consumption
in hotels—including energy for air-conditioning,
heating and cooking—as well as fuel used by
tourism-related transportation can also contribute significantly
to local air pollution in many host countries and
regions. Local air and noise pollution, as well as urban
congestion linked to intensive tourism development, can
sometimes even discourage tourists from visiting some
destinations.
Uncontrolled tourism activities can also cause
severe disruption of wildlife habitats and increased pressure
on endangered species. Disruption of wildlife
behaviour is often caused, for example, by tourist vehicles
in Africa’s national parks that approach wild cats
and thus distract them from hunting and breeding; tour
boat operators in the Caribbean Sea that feed sharks to
ensure that they remain in tourist areas; and whalewatching
boat crews around the world that pursue whales
and dolphins and even encourage petting, which tends to
alter the animals’ feeding and behaviour.
Similarly, tourism can lead to the indiscriminate
clearance of native vegetation for the development of
new facilities, increased demand for fuelwood and even
forest fires. Ecologically fragile areas, such as rain
forests, wetlands and mangroves, are also threatened by
5 A New Approach to Sustainable Tourism Development
intensive or irresponsible tourist activity. Moreover, as
will be discussed below, it is increasingly recognized
that, the rapid expansion of nature tourism (or ‘ecotourism’)
may also pose a threat to ecologically fragile
areas, including many natural world heritage sites, if not
properly managed and monitored.
The delicate ecosystems of most small islands,
together with their increasing reliance on tourism as a
main tool of socio-economic development, means that
this environmental impact can be particularly damaging
since the success of the tourism sector in these islands
often depends on the quality of their natural environment
(UN, 1999b). In addition, pollution of coastal waters—in
particular by sewage, solid waste, sediments and untreated
chemicals—often leads to the deterioration of coastal
ecosystems, notably coral reefs, and thus harms their
value for tourism.
The equally fragile ecosystems of mountain
regions are also threatened by increasing popular tourist
activities such as skiing, snowboarding and trekking.
One of the most serious environmental problems in
mountainous developing countries without appropriate
energy supply is deforestation arising from increasing
consumption of fuelwood by the tourism industry (see,
for example, CDE/SDC, 1999). This often results not
only in the destruction of local habitats and ecosystems,
but also in accelerating processes of erosion and landslides.
Other major problems arising from tourist activities
in mountain regions include disruption of animal
migration by road and tourist facilities, sewage pollution
of rivers, excessive water withdrawals from
streams to supply resorts and the accumulation of solid
waste on trails.

Pressure on natural resources

In addition to pressure on the availability and prices
of resources consumed by local residents—such as energy,
food and basic raw materials—the main natural resources
4 DESA Discussion Paper No. 29
at risk from tourism development are land, freshwater and
marine resources. Without careful land-use planning, for
instance, rapid tourism development can intensify competition
for land resources with other uses and lead to rising
land prices and increased pressure to build on agricultural
land. Moreover, intensive tourism development can
threaten natural landscapes, notably through deforestation,
loss of wetlands and soil erosion. Tourism development
in coastal areas—including hotel, airport and road
construction—is often a matter for increasing concern
worldwide as it can lead to sand mining, beach erosion
and other forms of land degradation.
Freshwater availability for competing agricultural,
industrial, household and other uses is rapidly becoming
one of the most critical natural resource issues in many
countries and regions. Rapid expansion of the tourism
industry, which tends to be extremely water-intensive,
can exacerbate this problem by placing considerable
pressure on scarce water supply in many destinations.
Water scarcity can pose a serious limitation to future
tourism development in many low-lying coastal areas
and small islands that have limited supplies of surface
water, and whose groundwater may be contaminated by
saltwater intrusion. Over-consumption by many tourist
facilities—notably large hotel resorts and golf courses—
can limit current supplies available to farmers and local
populations in water-scarce regions and thus lead to serious
shortages and price rises. In addition, pollution of
available freshwater sources, some of which may be
associated with tourism-related activities, can exacerbate
local shortages.
Rapid expansion of coastal and ocean tourism
activities, such as snorkelling, scuba diving and sport
fishing, can threaten fisheries and other marine
resources. Disturbance to marine aquatic life can also be
caused by the intensive use of thrill craft, such as jet skis,
frequent boat tours and boat anchors. Anchor damage is
now regarded as one of the most serious threats to coral
reefs in the Caribbean Sea, in view of the growing number
of both small boats and large cruise ships sailing in
the region (see Michael Hall, 2001). Severe damage to
coral reefs and other marine resources may, in turn, not
only discourage further tourism and threaten the future of
local tourist industries, but also damage local fisheries.

Interaction between tourism and

While tourism provides considerable economic
benefits for many countries, regions and communities, its
rapid expansion can also be responsible for adverse environmental,
as well as socio-cultural, impact.13 Natural
resource depletion and environmental degradation associated
with tourism activities pose severe problems to
many tourism-rich regions. The fact that most tourists
chose to maintain their relatively high patterns of consumption
(and waste generation) when they reach their
destinations can be a particularly serious problem for
developing countries and regions without the appropriate
means for protecting their natural resources and local
ecosystems from the pressures of mass tourism.
The two main areas of environmental impact of
tourism are: pressure on natural resources and damage to
ecosystems. Furthermore, it is now widely recognized
not only that uncontrolled tourism expansion is likely to
lead to environmental degradation, but also that environmental
degradation, in turn, poses a serious threat to
tourism activities.

Economic benefits of tourism

Tourism comprises an extensive range of economic
activities and can be considered the largest industry in
the world.5 International tourism is one of the fastest
growing sectors of the global economy. During the
1990s, when the globalization of tourism reached
unprecedented proportions, international tourism receipts
had a much higher average annual growth rate (7.3%)
than that of gross world product.
By 1999, international
tourism receipts accounted for more than 8% of the
worldwide export value of goods and services, overtaking
the export value of other leading world industries
such as automotive products, chemicals, and computer
and office equipment.
A significant proportion of world tourism expenditure
takes place within industrialized countries:
Europe alone accounts for around half of annual international
tourism receipt.
Tourism, however,
is the only major service sector in which developing countries have consistently recorded trade surpluses
relative to the rest of the world. Between 1980 and
1996, for instance, their travel account surplus
increased from $4.6 billion to $65.9 billion, due primarily
to the impressive growth of inbound tourism to
countries in Africa, the Caribbean, and the Asia and
Pacific regions (UN, 1999a). The 1990s also experienced
a significant growth of international tourism
receipts in the 49 least developed countries: total
tourism receipts in these countries more than doubled
from US$ 1 billion in 1992 to over US$ 2.2 billion in
1998.
Tourism is now the second largest source of foreign
exchange earnings in the least developed countries
(LDCs) as a whole.
Tourism has also become the main source of
income for an increasing number of Small Island
Developing States (SIDS). Foreign exchange earnings
can, however, vary significantly among these tourismdriven
economies because of ‘leakages’ arising from
imports of equipment for construction and consumer
goods required by tourists, repatriation of profits earned
by foreign investors and amortization of foreign debt
incurred in tourist development.
Besides export earnings, international tourism also
generates an increasingly significant share of government
(national and local) tax revenues throughout the
world. In addition, the development of tourism as a
whole is usually accompanied by considerable investments
in infrastructure, such as airports, roads, water and
sewerage facilities, telecommunications and other public
utilities. Such infrastructural improvements not only generate
benefits to tourists but can also contribute to
improving the living conditions of local populations.
This increase in social overhead capital can also help
attract other industries to a disadvantaged area and thus
be a stimulus to regional economic development.
The tourism sector is an increasingly important
source of employment—including in tourism-related sectors,
such as construction and agriculture—primarily for
unskilled labour, migrants from poor rural areas, people
who prefer to work part-time, and notably women.
Because the sector is relatively labour-intensive, investments
in tourism tend to generate a larger and more rapid
increase in employment than equal investment in other
economic activities.
Furthermore, given that the sector
provides a considerable amount of jobs for women and
unskilled workers, tourism can significantly contribute to
empowering women and alleviating poverty.
At the same time, available data suggest that most
workers in the tourism sector, notably in hotels and catering,
tend to earn less than workers in socially comparable
occupations in both developed and developing countries
(ILO, 2001). In addition, the differential tends to be larger
in less developed countries and regions, particularly those
with high rates of unemployment amongst unskilled labour.
Informal employment relations in small and medium-sized
enterprises, which employ about half of the labour force in
the hotel and catering sub-sectors worldwide, also contribute
to a relatively high proportion of child labour and
non-remunerated employment and other unacceptable
forms of social exploitation in many countries.
The increasing reliance of less diversified
economies on tourism also increases their vulnerability
to seasonal aspects of tourism and to shocks, such as, natural
disasters, regional wars and other unexpected events.
The recent crisis generated by fear of international terrorism
and regional conflict, for example, caused devastating
immediate effects on tourism-dependent economies.12
In addition, sudden changes in consumer tastes and sharp
economic downturns pose significant risks to such
economies, given that demand for mass tourism tends to
be relatively income-elastic and can produce drastic negative
responses to economic recession in source markets.
Nonetheless, it is now generally recognized that
tourism can make a vital contribution to employment,
export receipts and national income in most countries
and regions. Furthermore, tourism is often identified as
the most promising driving force for the economic development
of less developed countries and regions endowed
with areas of natural beauty—including Small Island
Developing States—because it offers them a valuable
opportunity for economic diversification.

Recent and future trends of sustainable Tourism

Tourism can be considered one of the most remarkable
socio-economic phenomena of the twentieth century.
From an activity “enjoyed by only a small group of relatively
well-off people” during the first half of the last
century, it gradually became a mass phenomenon during
the post-World War II period, particularly from the 1970s
onwards.1 It now reaches an increasingly larger number
of people throughout the world and can be considered a
vital dimension of global integration.2
Although domestic tourism currently accounts for
approximately 80% of all tourist activity (UN, 1999a),
many countries tend to give priority to international
tourism because, while the former basically involves a
regional redistribution of national income, the latter has
now become the world’s largest source of foreign
exchange receipts. According to the latest figures compiled
by the World Tourism Organization (WTO), foreign
exchange earnings from international tourism reached a
peak of US$ 476 billion in 2000, which was larger than
the export value of petroleum products, motor vehicles,
telecommunications equipment or any other single category
of product or service (WTO, 2001a).
International tourist arrivals grew at an annual
average rate of 4.3% during the 1990s, despite major
international political and economic crises, such as the
Gulf War and the Asian financial crisis.3 According to the
latest WTO figures, the turn of the millennium recorded
one of the most impressive annual growth rates in international
tourism. As table 1 shows, all regions of the
world recorded significant growth in international
tourism in 2000, during which the number of international
arrivals grew at an extraordinary rate of nearly 7% to
reach almost 700 million arrivals.
The September 2001 terrorist attacks in the United
States, however, appear to have had a more serious
impact on the tourist sector than any other major international
crisis in recent decades. The attacks had a particularly
severe impact on air transport, business travel and
long-haul travel. Worldwide travel reservations were
estimated to have dropped by 15% at the end of October
2001, although not every destination nor every part of the
tourism sector was badly affected (see WTO, 2001c). For
example, while air transport and luxury hotels have suffered
from considerable fall in demand, travel within the
same country or region, as well as travel by rail and road,
appear to have weathered the worst effects of the crisis,
or even benefited from it.
Nevertheless, initial forecasts of 3-4% rise in international
tourist arrivals for 2001, made before the
September 2001 attacks, were subsequently revised
downwards to around a 1% increase over the 2000 figures
(WTO, 2001c). The latest WTO (2002) data show
that there was an actual decline of 0.6% in international
arrivals, to a total of 693 million, in 2001. Given that the
northern hemisphere summer holiday season was coming
to end by the time the attacks took place, this significant
drop confirms that the short-term impacts of the attacks
were devastating to international tourism as a whole. The
last four months of 2001, in fact, recorded a drop of
almost 9% in arrivals worldwide and substantial decreases
in all regions of the world
It is worth noting, however, that this considerable
fall in international arrivals was caused not only by a
widespread fear of traveling generated by the attacks—
particularly in airplanes and to certain destinations—but
also by a downturn in the world economy. The economic
downturn that began in the United States during the first
half of 2001 had already been affecting the tourism sector
before the terrorist attacks were carried out. The
attacks aggravated the economic slowdown already
under way.4 The expected recovery in world tourism in
the near future will thus depend on the evolution of the
world economy, amongst other factors, including the possibility
of further terrorist acts or regional conflicts.
Some destinations will in any case experience a prolonged
decline in tourism revenues—regardless of any
world economic improvements—for various reasons,
including proximity to areas of regional conflict.
In the medium and long term, however, international
tourism is expected to resume its rapid growth, in view
of rising living standards and discretionary incomes,
falling real costs of travel, expansion and improvement
of various transport modes, increasing amounts of free
time and other factors. This helps to explain why WTO
(2001c) has reiterated its long-term forecasts, made
before the September 2001 attacks, of an average annual
growth rate in international arrivals of over 4% in the
period up to 2020. The number of international arrivals is
thus expected to reach the striking mark of 1 billion by
2010 and 1.6 billion by 2020