thetravelandtourismcompetitivenessindexasatoolfor.docVIP

The Travel and Tourism Competitiveness Index as a Tool for Economic Development Larry Dwyer, Peter Forsyth and Wayne Dwyer 1. Introduction Travel and Tourism is a key sector in the world economy and is a catalyst for economic growth and development in many countries. In the lesser developed countries (LDCs) in particular it is regarded as important for poverty reduction. Tourism has the potential to generate foreign exchange, income and employment in destinations. It can help to diversify economic activity, enabling countries to redistribute wealth and jobs from more developed urban areas to regional communities. More generally, Travel Tourism creates important backward linkages with products and services sourced locally, producing beneficial effects for the local economy as a whole (WEF 2007). A growing tourism industry also can support economic development through improved infrastructure such as better water and sewage systems, roads, electricity networks, and telephone and public transport networks, as well as improved education, health and communication services, all of which can a enhance a country’s development prospects and the quality of life of residents. Tourism also has the potential to play an important role in promoting sustainable development, through the preservation of natural and cultural heritage (UNEP 2002).Tourism is growing rapidly in many developing countries. The World Trade Organization (WTO) estimates that LDCs derive over 43 percent of their total services trade revenue from tourism exports, with the Least Developed Countries deriving more than 70 percent (REF). According to World Travel and Tourism Council (WTTC) research, most new jobs in developing countries are created in tourism industries. For small island economies with largely international service, the UNWTO estimates that up to 40 percent of their GDP and jobs can be generated by Travel Tourism. The United Nations World Tourism Organisation (UNWTO) believes that to