(ir-1:spective of what the
commodity)
is a general problem which is o,sting the Third World a lot5 usually it ,is one developing country competing against another for a particular market or capital. Because they act separately, it has not become obvious to public authoritieswhat mutual benefits can be reaped through joint action and co-opera¬
tion instead of this cut-throat
competition^ In the specific
caseof tourism, we should. observe that the product is available both in
the advanced countries and in the developing countries
(unlike
many other internationally traded
"items").
It. would pay the Third World, or. rather specific regions of it, to combine .together to bargain with the advanced world consumer and compete against touristoffer made by the latter world. In any case, trends in the. industry
indicate that the facilities and physical limitations existing in the
advanced countries are such that tourists will cone to demand more
and mere of the tourist product from the Third World region. In other words, there is not much economic sense in
hurrying(and
at sucha cost),when the trends are in favor, of the Third World, Joint
action and co-operation between them
(as
should indeed be the case in all their economicactivities)
would be more beneficial to them,The participation of Western capieal in the tourist sector of the Third World is treated elsewhere in this study,
IUOTO - Document for General Assembly in Caracas - see. bibliography
R/2640
Page 85
individually or as a group, than' the present strategy cf competing against each ether. If ne comes to think of it, what
results'
fromthe présent policy being pursued in the Third World is that
rthe
poor countries are subsidising the holidays
(and
the pleasure re¬quirements)
of the citizens of the richer world community.One of the reasons given in support of tourist development,
as opposed to other forms of earning foreign exchange is the stabi¬
lity
that this sector is said to display. The global growth rates-•ave been undoubtedly high. A major determinant for tourist demand
is the level of income and since world economic growth continues to qualify more and more people to become international tourists, there
is a bright future for the sector. Traditional export lines are
"no't moving and have a disappointing
history.*
Tariff and other trade barriers discourage the exportation of the new manufactures of the Third World into the advanced countries(assuming
the quality is good and production costs are low enough to make these goods competi¬tive,
otherwise).
Tourism is a field in which the developingcountries can participate in peace and relative security, the argu¬
ment goes.
But is1 it that rosy? World tourism displaying a steady rising tendency says nothing about the stability of the individu;!
country's share of the tourist business. Before we take up the stability aspect .at the country level, let us first point out what might cause fluctuations at the global level. Although there:is
an upward climb of average income in the advanced countries, we should
bear in mind tnat essentially tourism is a luxury consumption itemj
See, for example .'/Tourism's role in economic development" in IUOTO
-"Travel Research
Journal,"
Edition1972,
no. 2.Page
86
it is hit hard when economic recession sots in. Not only will per¬
sonal incomes drop "but governments are apt to impose restrictions
that affect travel
(one
only has to recall the British Governmentmeasures in connection with the Balance of payments problems and the 1967 pound sterling
devaluation).
There are conditions that must "be met once the sector is esta¬
blished, to keep the clients coming and earnings steady or rising.
It is usually the Third World that we hear has been a victim of this epidemic or that disaster
(which
advancement has eradicated fromthe developed
world).
Any such health hazard is enough to ruin thetourist industry - not only during the epidemic but some seasons afterwards. The foreign policy of the receiving country must be favorable, at least as far as its major toufist-generating countries
are concerned. Any "nasty" internal incidents will give bad publi-cityffor example, the accedental shooting of an enterprising tourist swimming in the wrong direction
(Zambia)
or a General Amin despatching people to places where their passports indicate they come from - theseare enough to affect tourism not only in Zambia and Uganda, but the
effects were felt in Tanzania and Kenya, There has yet not been a
complete recovery from the ill-effects of these incidents. The October
War is still affecting the tourist sector in Egypt
(whatever
favorable developments are taking place now, there can be no assurance thatthere will be no more wars in the Middle
East),
A particular factwhich is often realised a little too late is .that although tourism
has come to stay, the tourist product changes. It is a fashion sub¬
ject to variation and each country in the business has to read the trends. In some cases, the country may be able to adjust its program to suit the current demand. But where there is a change in tourist
demand from say wildlife and safari to beach resorts, land-locked Uganda will simply be out of the race. Development financing out of
tourism should therefore realise that in terms of stability, nothing
may have changed by a switch from primary goods exports to inter¬
national tourism.
R/2640
Page 87
NEED FOR PLANNING AND CONTROL OF THE TOURIST SECTOR
What we have said, about tourism and. development casts the
tourist sector in not a favorable light, to say the
least.
Theideal situation would be for any country that intends entering