RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/51
23 September 1998
(98-3690)
Council for Trade in Services
TOURISM SERVICES
Background Note by the Secretariat
I. INTRODUCTION1. At the request of the Council for Trade in Services, the Secretariat has prepared this Note on
tourism services as part of the information exchange programme.  For the purpose of conciseness, as
well as limited time availability, the focus of the Note is on international tourism (as defined below),
rather than on domestic tourism or tourism in general.  The Note is intended to serve as a background
to more extensive discussions by Council Members.
2. Tourism, broadly defined, is regarded as the world's largest industry and one of the fastest-
growing, accounting for over one-third of the value of total world-wide services trade.
1  H i g h l y
labour-intensive, it is a major source of employment generation, especially in remote and rural areas.
Tourism demand, both domestic and international, is directly related to income levels, and thereforehas prospered as global wealth has increased.  The arrival of low-cost air travel has radically
transformed tourism as a whole, but the industry  has expressed serious concern over the current
system of bilateral aviation agreements, arguing that protectionism severely limits tourism potential.
3. The supply of tourism services is characterized primarily by the cross-border movement of
consumers -- i.e. the consumer coming to the supplier, rather than the opposite as is the case with
many other services.  Tourism is actually composed, at least partially, of a signficant number ofservices sectors;  as a result, its full economic impact is often not clearly defined within national
statistics.  Tourism is also a highly "perishable" commodity, in the sense that unsold airline seats,
hotel rooms, etc. have no residual value.  The industry is highly infrastructure dependent, and relies
upon various transport services to deliver clients.  Immigration and entry/exit control regulations have
a direct influence on the supply on international tourism services.  Important challenges facing theindustry include environmental and infrastructure problems, as well as rapid technological change.
4. During the Uruguay Round, a Working Group on Tourism Services was formed, and a
number of meetings held.  At the request of the Working Group, the Secretariat circulated a document
entitled "Trade in Tourism Services", dated 4 July, 1990 (MTN.GNS/W/61).  The paper provided anoverview of:  tourism-related activities;  forms of trade in tourism services;  motivations and
                                                     
1 Sections of this Note rely upon the following documentation:  Economist, "Dream Factories:  A
Survey of Travel and Tourism", 10 January, 1998;  Financial Times, "Survey:  World Tourism", 18 June, 1998;
UNCTAD, International Trade in Tourism-Related Services:  Issues and  Options for Developing Countries,
(TD/B/COM.1/EM.6/2, 8 April, 1998) and other papers submitted for the Expert Meeting on Strengthening the
Capacities of the Tourism Sector in Developing C ountries, Geneva, 8-10 June, 1998;  World Tourism
Organization, International Tourism:  A Global Perspective, 1997, Madrid;  World Tourism Organization,
Seminar on GATS Implications for Tourism, 1995;  and World Tourism Organization, Tourism Economic
Report, 1998.S/C/W/51
Page 2
objectives for regulation;  and existing regulations.  Some basic statistics were presented, as well as
background information on the World Tourism Organization, an inter-governmental United Nations
affiliated institution.  A second Secretariat paper, "Classification of Tourism-Related Services", dated
23 October, 1990 (MTN.GNS/TOUR/W/1/Rev. 1) is discussed below.
II. DESCRIPTION OF THE SECTOR
5. Tourism and Travel Related Services, category 9 of the Services Sectoral Classification List
(MTN.GNS/W/120), is distinctly limited in scope.  Th e category is divided unto four sub-sectors, the
first three of which have associated listing under the United Nations' "Provisional Central Product
Classification" (CPC).  These sub-sectors, and their CPC numbers, are as follows:  A. Hotels and
restaurants (including catering) (CPC 641-643);   B. Travel agencies and tour operators services
(CPC 7471);  C. Tourist guides serv ices (CPC 7472);  and D. Other . No further sub-classifications are
currently provided for under W/120.  Tourism activities which are part of more general services
activities -- most notably many transport services, but also including certain business services;
distribution services;   and recreational, cultural and sporting services -- have typically been placed
within those general services categories.
6. Under the Provisional Central Product Classifi cation itself, CPC 641 (Hotel and other lodging
services) is divided into CPC 6411 (Hotel lodging services), CPC 6412 (Motel lodging services) and
CPC 6419 (Other lodging services), the last of which is further separated to include holiday camp
services, youth hostels, etc.  CPC 642 (Food serving services) is divided into full restaurant services(CPC 6421), self-service facilities (CPC 6422),  cat ering services (CPC 6423)  and other (CPC 6429).
The CPC 643 classification (Beverage serving services for consumption on the premises) is composed
of services without entertainment (CPC 6431) and those with entertainment (CPC 6432). Travel
agencies and tour operators services (CPC 7471 a nd Tourist guides services (CPC 7472) are not
further subdivided.
2
7. As noted in the Secretariat document, "A Qualitative Assessment of the Relevance of theChanges Resulting from CPC Rev.1  for Trade Nego tiating Purposes" (S/CSC/W/9, dated 9 October
1997, p.3), adoption of CPC Rev. 1 for tourism would not result in any great changes:  "As far as
hotels and restaurants are concerned the only changes are the aggregation of hotels and motels (onlyfive Members have offered only one of those two it ems and would have to redraft their entries), and
the aggregation of beverages services with and without entertainment (no redraft of entries needed as
the five Members that have gone into that detail have offered them both).  As far as travel agencies,
tour operators and tourist guides are concerned, the only change is the disaggregation of  " travel
agencies and tour operators services " (p 74710) into three categories:  travel agency  (r 67811), tour
operators  (r67812) and tourist information services  (r67813).  This may possibly encourage
commitments to be made on those subsectors as they would no longer have to be taken as a block."
8. The OECD notes that it is very difficult to define or measure tourism with any precision.
3  In
an effort to improve understanding, the "OECD Tourism Economic Accounts" were developed, and
the International Forum on Tourism Statistics was established in 1993 by the OECD and Eurostat to
further the exchange of views.  Cooperation also occurs with the World Tourism Organisation.4  The
objective is to develop "Tourism Satellite Accounts " in order to provide for comparable international
accounts as well as an improved analytical framework.  The satellite accounts attempt to measure
                                                     
2 Excluded from the CPC definition of Tourist guides services (CPC 7472) are services by own-account
hunting guides, as well as personal escort services.
3 OECD Internet site (http://www.oecd.o rg/dsti/sti/transpor/tourism/act/stats.htm).
4 In cooperation with the World Tourism Organization, an Annex on Tourism Related Services was
developed and added to the Provisional Central Product Classification (pp. 164-168).  The Annex collects therelevant tourism-related categories from the main body of the CPC.S/C/W/51
Page 3
tourism-related activity by determining what percentage of each industry is accounted for by tourism.
The satellite account methodology is already in place or under development in such countries as
Canada, Mexico and Egypt.
9. International tourism is defined by the World Tourism Organisation as occurring when a
traveller crosses an international border (Table 1).  The GATS definition of tourism in general, asreflected in W/120, leaves out many services activities, such as computer reservation systems,
transport, hotel construction, and car rentals, which are regarded by the World Tourism Organization
as key tourism-related industries.  The World Tourism Organization has stated that it is not satisfied
with the current GATS definition, and would like to have it revised in the next round of services
negotiations commencing in 2000.
10. During the Uruguay Round, the Secretariat circulated a document entitled "Classification of
Tourism-Related Services", dated 23 October, 1990 (MTN.GNS/TOUR/W/1/Rev. 1).  The paper
included an illustrative list of core tourism activities, based on the draft "Standard International
Classification of Tourism Activities" (SICTA) of the World Tourism Organization.  The SICTA
identified approximately 70 specific activities related to supplying tourism services;  in addition,
another 70 activities at least partially concerned the supply of tourism services.  An attribution ofSICTA activities to W/120 categories has been made by the World Tourism Organization (Table 2).
The Secretariat paper also noted that the main items of world-wide tourism expenditure, according to
the World Tourism Organization, were accommodation, meals, local transport, entertainment and
shopping.
Questions for further discussion:
* Would it make sense to expand the current GATS definition of tourism, as reflected in
W/120, to ensure that other tourism-related services activities are included when
Members make commitments in tourism?  Should Members consider only those aspects,such as hotel construction or management, specifically related to tourism?
* Would the SICTA listing be useful in helping future negotiators to negotiate
commitments in all services sectors affecting tourism?
III. ECONOMIC IMPORTANCE OF THE SECTOR AND ITS MAIN ECONOMIC
FEATURES
11. According to estimates by the World Travel and Tourism Council, an organization composed
of executives from the travel and tourism industries, tourism and general travel accounted for 10.7 per
cent of world-wide GDP in 1996, and is predicted to increase to 11.5 per cent by 2006.
5  International
tourism, by comparison, is significantly smaller.  The World Tourism Organization says that only
7 per cent of the world's population will be traveling internationally even by 2020, compared with
3.5 per cent in 1996.6  Nonetheless, international tourism has a very substantial impact on trade levels,
as well on foreign exchange earnings.  For developing countries, it is one area where they run
consistent trade surpluses:  in 1995, the net tr ansfer between OECD and non-OECD countries was
US$23.5 billion, up sharply from only US$6.2 billion in 1985.7 According to the World Tourism
                                                     
5 The great majority of tourism businesses are privately owned and managed, consisting predominately
of small and medium-sized enterprises.  Some travel businesses are government-owned, including travelagencies, reservation services, hotels, airlines, etc.
6 It should be noted that domestic and international travel are substitutes for each other, and highly
influenced by per capita income levels and general economic conditions.
7 These figures exclude net fare receipts:  for 1995, the net transfer from the OECD countries to the
non-OECD countries was US$3.5 billion.S/C/W/51
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Organization, world-wide international tourism rece ipts for 1995 (the most recent year available)
totalled US$484 billion, of which US$84 billion was international fare receipts.  This figure was
slightly more than one-third the value of total world-wide trade in services.
12. Tourism ranks in the top five export categories for 83 per cent of countries, according to the
World Tourism Organization, notably in Europe, the Middle East and the Americas, and is the leadingsource of foreign exchange in at least one in three developing countries.  Countries with the highest
ratios of tourism receipts to GNP are typically small island nations (Table 3).
8  Although much of the
gross tourism receipts (i.e. 50-70 per cent) "leak" out of these countries in order to pay for imported
tourism inputs, the ratio of net receipts to GNP remains much higher than for most larger countries.
For developing countries as whole, tourism receipts represented nearly 9 per cent of the value of their
merchandise exports in 1995, an increase from the 5.9 per cent level a decade earlier;  for developed
countries, the figure was 7.7 per cent, compared to the previous level of 6.3 per cent.
13. According to 1993 estimates of the World Tr avel and Tourism Council, tourism as a whole
employed one in ten workers world-wide, making it the world's largest employer.  The World
Tourism Organization notes, however, "The contri bution of tourism to employment and tourism's
potential to generate new jobs ranks as one of the paramount questions related to the social andeconomic importance of tourism.  However, it is difficult to make accurate assessments of its volume
and impact on the economy.  Unfortunately, reliable and comparable data about tourism employment
on the international level is very scarce".
9  Tourism has three types of effects on employment:  direct
effects resulting from expenditures by tourists;  indirect effects, such as the employment generated for
the firms which act as suppliers to tourism-related enterprises;  and induced effects on the economy asa whole resulting from expenditures deriving from the direct and indirect employment effects.  The
greatest difficulties in assessing the impact on employment result from the problems of defining and
measuring tourism itself, considering that only a few services sectors are exclusively devoted to
tourism, as noted earlier.  What statistical information is available is typically limited to information
on particular sub-sectors, such as the hotel industry, and for the more developed countries (Tables 4and 5, respectively).
14. The tourism sector is already a major employer in developing nations, and the importance of
tourism employment is increasing, due to the high growth rate of the sector relative to the domestic
economy as a whole.
10  UNCTAD notes that the tourism trade has traditionally been concentrated in
developed countries, but the share of developing countries has been rising gradually, and now
accounts for about one-third of the total.  Least Developed Countries are enjoying strong increases in
tourist growth, but their share of international arrivals and tourism receipts remains very small, at 0.7
and 0.4 per cent, respectively.  Examples of countries with rapid tourism growth (often from a very
low base) include Cambodia, Mali, Laos, Myanmar, Uganda and Tanzania.  The situation differs
greatly between countries, and heavily affected by political and economic instability as well as the
availability of transport facilities.  Considering the highly labour-intensive nature of tourism,
developing and least developed countries would appear to have strong potential comparative
advantage.11
                                                     
8 Travel and tourism accounts for over 25 per cent of GDP and 20 percent of employment in Caribbean
countries.
9 World Tourism Organization, Tourism Economic Report, 1998, p.87.
10 Even developed countries are also hoping for expanded employment benefits through tourism
promotion. Governments in OECD countries, however, have been under budgetary pressure to reducing funding
for tourism promotion.  At the same time, such promotion activities have often been criticised for inefficiency,lack of innovation and entrepreneurship, and expertise problems.  The result has been increased reliance upon
partnerships of various types, including intergovernmental and public/private sector partnerships.
11 According to the World Tourism Organization, the extent of employment generated by tourism in
these countries is partially contingent upon the "ability and willingness of local tourism businesses, operatorsand governmental bodies to develop plans, market effect ively and reach an appropriate target audience" (World
Tourism Organization, International Tourism:  A Global Perspective, 1997, p.226).S/C/W/51
Page 5
15. The World Tourism Organization has forecast th at by 2000, international tourist arrivals will
reach 702 million, and by the year 2010, 1.1 billion.  It should be noted that even international tourism
mostly involves travel within the same geographic region.  For 1997, as in several previous years,
France was again first in terms of international tourist arrivals, with 66.8 million, followed by the
United States with 49 million, Spain with 43.4 million and Italy with 34.1 million, according to WorldTourism Organization data.  Of the developing countr ies, China was sixth overall, Mexico was eighth,
Hong Kong, China sixteenth, Turkey nineteenth and Thailand twentieth.  World-wide arrivals totaled
612.8 million, a slightly more than 3 per cent increase over 1996.
16. International tourism receipts, excluding fares, have more than tripled in the past decade
according to the World Tourism Organization, growing at an annual rate of about 13 per cent.  For
1997, the United States was first in gross receipts , totalling US$75.1 billion, followed by Italy with
US$30 billion, France with US$27.9 billion and Sp ain with US$27.2 billion.  Among the developing
countries, China was eighth;  Hong Kong, China was tenth;  and Thailand was twelfth. The difference
in rankings compared with the list of internatio nal tourist arrivals is due to differences between
countries in average tourist spending.  World-wide receipts amounted to US$443.8 billion, a 2.3 per
cent increase over 1996.  Comparative data on international receipts and expenditures are presented inTables 6 to 9.
17. Most long-haul and transcontinental travel is by air, as well as much short-haul traffic, and
some locations for international tourism are acces sible only by air.  World Tourism Organization
statistics indicate that arrivals by air are over 90 per cent of total arrivals for a signficant majority ofdeveloping countries.  The advent of low-cost air travel, following the arrival of wide-bodied jets in
the 1980s, and the resulting rapid increase in the number of passengers, has been the major factor of
recent change in the tourism industry.  Currently,  the primary issues facing the transport aspect of
tourism as a whole include fleet planning (i.e. ef ficiently matching supply with demand), congestion,
safety and security, and environmental impact.
18. Statistics on the international hotel industry are incomplete and definitions vary, but as of
1995 there were an estimated 24 million hotel beds world-wide, representing nearly a 50 per cent
increase from 1980.  Total revenues for the same year were estimated at US$253 billion.  Europe
accounted for about 45 per cent of the total hotel capacity, followed by the Americas with about35 per cent and East Asia/Pacific with somewhat more than 14 per cent.
 12  Economics, technology
and logistics are said to be promoting mergers within the hotel industry.  In the United States, three-
fourths of all hotels are part of a chain, whereas the figure is only about one-fourth for the rest of the
world.  In these latter markets, the system of rating hotels according to a certain number of "stars" is
still more influential than the brand image generated by the marketing efforts of the major chains.
Some hotel owners are sceptical of government rati ng systems, however, due to reported past attempts
in certain countries to link them to taxation schemes and price controls.
19. Food costs are estimated at 18-20 per cent of tourism expenditures.  As a whole, food and
beverage outlets are highly sensitive to economic conditions, and therefore have a high turnover rate.
Although the share has been gradually declining due to changing consumer preferences, major
international hotels in the United States continue to derive about 30 per cent of their revenues fromfood and beverage sales.  Catering for in-flight and other transportation-related sectors is also an
important part of the food service industry.  Among independent food service establishments, the
growth of international franchising is an important trend.
20. In 1992, there were an estimated 67,000 travel ag ents world-wide, of which 47 per cent were
in the United States and 30 per cent in Europe, the Middle East and Africa.  Technological changes,
                                                     
12 World Tourism Organization, Tourism Market Trends: 1997 Edition - World, Madrid, 1997, pp. 35 -
 36.S/C/W/51
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including on-line services and ticketless travel, are significantly reducing the need for travel
intermediaries.  The travel agents most considered at risk are the small neighbourhood shops, and the
large firms serving corporate clients.  A second factor is that airlines in the United States have been
reducing the commissions they pay to travel agents.  In 1995, major U.S. airlines instituted a "cap"
policy on travel agent commissions in order to limit costs.  As a result, average commissions for
domestic airline ticket sales have since declined.  Hotel chains and cruise lines, however, are lessaffected as travel agent recommendations are still considered highly influential.
21. In situations of direct distribution of touris m services, the consumer makes reservations and
purchases directly from the service provider, e.g. an airline or a hotel.  With indirect distribution, the
intermediaries can be wholesalers (typically those who assemble tour packages), tour operators, or
retailers (e.g. travel agencies).  Advantages for the consumer are often lower prices, the ability to
compare alternatives and the opportunity to group and pay for an entire excursion as a single package.For many developing country tourism suppliers, sales and marketing are typically handled through
international tour operators, as the lack of resources for international marketing campaigns often
leaves these suppliers with few other options.
22. The rapid expansion of global distribution sy stems (GDS) and computer reservation systems
(CRS), reflect recent technological advances.  Unlike most other tourism-related services where a
physical presence is required, GDS and CRS are characterized by supply of the service on a cross-
border basis.  CRS are typically proprietary systems used to check flight availability, make
reservations and often to issue tickets.  The same systems often can also be used for hotel reservations
and car rentals.  GDS, on the other hand, are systems for "neutrally" grouping and displayinginformation from a range of CRS systems.
13  Some CRS proprietors have expressed concerned that
their data may be tampered with or presented in a biased manner;  therefore, various codes of conduct
have been devised to protect both the integrity and neutrality of the information contained within
GDS.14  A related issue is that some CRS are said to have monopoly distribution rights, thereby
preventing distribution of certain products via the GDS.
23. The expanding popularity of the Internet is promoting a further wave of rapid technological
change, one which is expected to accelerate the changing role of travel agents.  The advantage of
Internet is the ability to make travel products globally accessible at a much lower cost, the benefits of
which potentially could be extended to developing countries as their telecommunications systemsimprove. GDS and CRS are now interacting with Internet, and airline and other ticket sales through
the Internet are predicted to rise from US$800 million in 1997 to US$8.9 billion by 2002.  For many
suppliers, tourism marketing efforts are increasing focusing on Internet users.
Questions for further discussion:
* What might be the effects of the Asian economic crisis (and its global economic impact)
on international tourism?  Can the previous growth estimates still be considered
reliable?
* What are the potential benefits and risks for developing countries of the rapid
technological changes currently affecting tourism?
                                                     
13 The major GDS systems are Amadeus (covering 30 markets world-wide), Worldspan, Sabre, Galileo
and System One.
14 Codes of conduct or other regulations concerning CRS have been developed by Canada, the
European Civil Aviation Commission, the EU, the International Civil Aviation Organization and theUnited States.   Apparently, however, the regulations and codes primarily apply to airline schedules and not to
other types of information.S/C/W/51
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IV. REGULATORY STRUCTURE AND RELEVANT TRADE RESTRICTIONS
24. In 1990, the OECD published an Inventory of Obstacles to International Tourism in the
OECD area.  The study concluded that, by comparison with other service sectors, the tourism sector in
OECD countries was "remarkably free from protectionist and discriminatory practices".15  The July
1990 paper by the Secretariat on trade in tourism services noted that many of the regulations affectingtourism, such as equity limitations on FDI, tended to be by-products of general economic, political
and social concerns applying to a number of sectors.
16  In some cases, restrictions might be imposed
by both the services importer and the exporter. Such measures notably included immigration and
security controls,17 together with documentation requirements, as well as any restrictions on currency
movements which might be applied to individual tourists or tourism businesses.  Specific regulations
applying to the tourism sector might have such objectives as consumer protection, ensuring financial
responsibility, or the development of the local economy and the domestic tourist industry.  A lack ofregulatory transparency, or the denial of national treatment, might also act as general barriers to
international trade in tourism services.
25. Few studies apparently exist on the higher level of tourism trade which might take place if
existing restrictions were removed.  An UNCTAD representative has noted that strategies forstrengthening the competitiveness of the touris m sector in developing countries involved:
modernization of the regulatory framework;  streng thening institutional capacity (i.e. coordination and
planning mechanisms);  application of international standards;  and the strengthening of competition
rules.  A Swiss tourism representative has stated that tourism involves "economies of scope" rather
than economies of scale, due to the fact that that many different sectors of the economy -- most ofwhich are only partially concerned with tourism -- must cooperate together closely in respect to such
aspects as distribution systems and advertising.  Therefore, it is important for national tourism policies
to focus on the vertical nature of the sector in regard to marketing and policy development.
18
26. As noted by the World Tourism Organization, ad equate infrastructure must be in place (and
sufficiently maintained) to support any intended tour ism activities, both for domestic and international
tourism.  This most obviously includes airport facilities, port facilities road systems and
telecommunications, as well as water supplies, electric power and sewage treatment facilities.
Regarding actual tourism facilities, adequate consideration must be given to lodging and food, as well
as local transportation.  Developing countries also face significant cost and technical barriers to GDSaccess:  small airlines and tour operators find the booking fees of individual CRS prohibitively high,
and the "back office systems" in developing countries are also often insufficiently developed.
Grouping into associations could provide the necessary economies of scale for the CRS.  Also, GDS
could be developed on a national basis.  Standardization of electronic systems and interfaces could
also reduce costs.
27. According to UNCTAD, developing county tourism exports are hindered by the long
distances of many developing countries from the main tourist-generating centres, and the high air-
fares caused by low air traffic density.  Protectionist aviation policies, states the World Travel and
Tourism Council (WTTC), severely constrain the de velopment of tourism.  According to a WTTC
official, "Aviation protectionism pulls customers away from the whole travel and tourism chain –
from hotels, resorts, car rentals, computer reservatio ns systems, entertainment, cultural attractions and
                                                     
15 World Tourism Organization, Seminar on GATS Implications for Tourism, 1995, p.42.
16 The tourism industry has actually been an important part of the rapid world-wide growth in FDI.
According to UNCTAD, developing countries can encourage FDI in the tourism sector by undertaking
commitments under the GATS.  In regard to commercial presence for hotel services, however, it should be
noted that such practices as imposing high tariff duties on hotel equipment can be a major barrier to inward FDI.
17 A major issue for the movement of natural persons in the tourism industry concerns barriers in
situations not involving commercial presence (e.g. cooks for Indian restaurants).
18 World Tourism Organization, Seminar on GATS Implications for Tourism, 1995, pp.29, 48.S/C/W/51
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all the rest of our industry".19  A recent WTTC report strongly promotes aviation liberalization, noting
that, in most countries, the gross receipts from hotels and other tourist activities are substantially
greater than those of the national airline, and the "leakage" of foreign exchange earnings is
proportionately much less.20
28. A WTTC official has claimed that many bilateral agreements encourage inefficiency in airtransport by restricting market access, controlling prices and capacity, and protecting money-losing
state carriers.
21  In December 1994, the International Civil Aviation Organization held a world-wide
conference to examine international air transport regulation.  Although the "open skies" concept was
considered, developing country and some developed country members perceived this to be a threat to
their continued participation in international air transport.  The conference therefore concluded with
the decision that each State would choose its own pace for change, using bilateral, regional and
multilateral mechanisms.  Various options for gradual liberalization by developing countries werediscussed, including the liberalization of charter flights as an initial step.
29. According to the World Tourism Organization, su stainable tourism is roughly defined as the
meeting of the needs of present tourists and host regions, while protecting and enhancing
opportunities for the future.  "Sustainable development" can be defined as "a sustained improvementin the fulfilment of the needs of a population without exerting a negative impact on the environment",
and "ecotourism" defined as "responsible travel to natural areas which conserves the environment and
improves the welfare of local people.
22  Although mass tourism has often been blamed for
undermining the socio-economic basis of "traditional" local life, positive effects of tourism can
actually include the revival of local arts and handicrafts.
30. Strong motivations for environmental protection exist at both the industry and client levels.23
In 1995, the World Travel and Tourism Council, the World Tourism Organization and the Earth
Council released a joint environment plan, entitled Agenda 21 for the Travel and Tourism Industry:
Towards Sustainable Development.  The plan covers such issues as waste utilisation, energy and non-
renewable resource conservation, water management, local community involvement customerawareness and staff education and training.  Also included are mechanisms for the development of
consultative arrangements between government, industry, local communities and environmental
interests.
24  An example of initiatives at the government level is the ECoNETT environmental
communications network of the European Community.
31. Trade liberalization in the tourism sector, including the increased movement of natural
persons, has also led to increased demand for deve lopment of international standards.  The World
Tourism Organization has developed human resource quality, and is working on developing a range
of other quality standards, commencing with  thos e to be applied to tourism destinations.  The
                                                     
19 World Tourism Organization, Seminar on GATS Implications for Tourism, 1995, p.36.
20 World Travel and Tourism Council, Air Transport and Freer World Trade, Internet version
(http://www.wttc.org/).  Import leakage for small national airlines in developing countries is typically 65-70 per
cent of total operating costs.  A World Tourism Organization study, Aviation and Tourism Policies, stated that
some countries were spending more money protecting their domestic carriers than they generated through their
entire travel and tourism industry.
21 The World Travel and Tourism Council states that air service is the factor that is crucial to tourism-
driven development, not airline ownership.  Recent privatization initiatives may have reduced the incentive fordeveloping countries to protect their national airlines.  Potential problems, however, include the risk ofdomination by a single company.
22 Wolfgang Hein, Tourism and Sustainable Development, 1997, Hamburg, p.7.  It is important to note
that even ecotourism typically involves the use of fossil fuels and the emission of greenhouse gases as touriststravel to and from their destinations.
23 Many private tourism-related firms, notably hotels, for example, have instituted various types of
environmental programmes.
24 Internet site of the World Travel and Tourism Council (http://www.wttc.org/).S/C/W/51
Page 9
International Organization for Standardization (ISO) has formed a working group to examine
standards on terminology for hotel accommodations. Meanwhile, certification of standards conformity
is already occurring in countries such as France for tourism information centres.
Questions for further discussion:
* Is there a need to collect further information,  perhaps on a country-by-country basis, on
the tourism regulations not already mentioned in Members' Schedules?
* Would greater international acceptance, and use, of international standards facilitate
increased trade, including the movement of natural persons?
V. NEGOTIATIONS ON TOURISM SERVICES AND EXISTING COMMITMENTS
UNDER THE GATS
32. As of September, 1998, 112 WTO Members have made commitments in Tourism under the
GATS (Table 10).25  This level is greater than for any other sector, and indicates the desire of most
Members to expand their tourism sectors and to increase inward FDI as part of efforts to promote
economic growth.  In the view of the World Tourism Organization, the tourism sector was already
highly liberalized before the Uruguay Round negotiations;  few major obstacles remain.
33. Of the 112 Members, 66 referred to the CPC at  the level of the correspondence between CPC
and W/120, which is a mix of three-digit items (CPC 641, 642 and 643) and of four-digit items
(CPC 7471 and 7472), and three Members made commitments at the same level of correspondence,
but with the addition of sui generis  items.26  Seventeen other Members referred to the CPC in greater
detail (i.e. at the four or five digit level), and four others combined more detailed reference to the
CPC with sui generis  items.  Fourteen other Members referred to the W/120 items without quoting the
CPC and one combined reference to W/120 with sui generis  concepts.  Finally seven Members made
no reference either to the CPC or to W/120.  Also noted in the commitments were the relatively
important number of " sui generis   concepts" such as "hotel development", "marinas", "yacht and
leisure boat renting".
34. In regard to the level of market access and national treatment provided within Member
schedules, commitments by mode of supply vary widely for the Tourism sector as a whole (Table 11).
The percentage of Members placing no restriction on market access (i.e. a "None" entry in their
schedule for all subsectors where commitments are made) is highest for consumption abroad (at
49 per cent),  and lowest for the presence of natural persons (at 1 per cent).  Regarding national
treatment, the pattern is similar, with the percentage of Members having no restrictions on their
commitments at 52 per cent for consumption abroad and 11 per cent for the presence of naturalpersons.  Regarding "Unbound" modes of supply, i.e. those for which no commitments are made, the
level in respect to both market access and national treatment is highest for cross-border supply, due
primarily to a lack of technical feasibility, at 27 per cent and 24 per cent, respectively.  Table 12,
which presents a more detailed analysis by individual sub-sector, shows a similar pattern to that for
the Tourism sector as a whole.
35. The number of commitments made also varies wi dely by sub-sector.  Hotels and restaurants
(sub-sector A) shows the greatest number, with 112 Members (i.e. all) making commitments,
followed in order by sub-sector B, Travel agencies  and tour operators services with 89, sub-sector C,
                                                     
25 The schedules of Austria, Finland and Sweden are counted separately, as they have not yet been
integrated into the schedule of the European Community and its Member States.  Aruba, the NetherlandsAntilles and New Caledonia also have schedules, but are not counted separately.
26 This paragraph updates and revises information presented in document S/CSC/W/9, p.3.S/C/W/51
Page 10
Tourist guides services, with 54, and sub-sector D, Other, with only 13 commitments (Table 10).
Under "Other", a number of Members have given no description in their GATS schedule of what is
included;  other Members have listed specific activities, in one case including transport-related
commitments.  Of the 112 Members making commitments, 10 have made them in all four sub-sectors;
45 have made them in three subsectors, 36 in two subsectors and 21 in only the first sub-sector
(Table 10).  In other words, nearly one-half of the Members making commitments have done so inthree or more sub-sectors.
36. Among the most common restriction appearing in schedules, the cross-border supply of hotel
and restaurant services, as noted above, is often indicated as unbound due to lack of technical
feasibility.   An economic needs test is frequently required for opening new bars or restaurants;
citizenship requirements are sometimes imposed fo r liquor licenses and tourist guide licenses.  In
regard to commercial presence, market access is often guaranteed only to hotels in excess of a certainsize, e.g. 50 or 100 rooms, with access for hotels below that size subject to an economic needs test.  In
some cases licences are required for commercial presence, and in other cases commercial presence is
restricted to fixed equity limits.
37. An MFN exemption affecting Tourism has been taken by Mexico in regard to tax deductions
for individuals attending business conventions.  Under the Aviation category in the Transport sector,
Members have taken a significant number (16) of MFN exemptions for CRS;  exemptions are also in
place for a number of other aviation-related measures.  In addition, a substantial number of Members
have taken general MFN exemptions which may have an effect on the Tourism sector, most notably
preferential access measures for natural persons.
Questions for further discussion:
* Should more attention be drawn to the fact that liberalization in the tourism sector as a
whole is highly dependent upon commitments taken in other GATS sectors?
* Might Members wish to again consider whether a GATS Annex may be required in
order to formally recognize that tourism is in fact broader than the current GATS
definition?
VI. SOURCES OF ADDITIONAL INFORMATION
38. Relevant sources of additional information also include the following Internet sites:
27
- Air Transport Association (http://www.air-transport.org/)
- Caribbean Tourism Organization (http://www.caribtourism.com/)
- Hotel & Catering International Management Association (http://hcima.org.uk/)- International Air Transport Association (http://www.iata.org/)- International Association of Convention and Visitors Bureaus (http://www.iacvb.org/)- International Civil Aviation Organization (http://www.icao.org/)
- International Hotel & Restaurant Association  (http://www.ih-ra.com/)
                                                     
27 Source for the items on this list is the World Travel and Tourism Council's Internet site
(http://www.wttc.org/).S/C/W/51
Page 11
- Indian Ocean Tourism Organisation (http://www.cowan.edu.au/pa/ioto/)
- International Federation of Information Technology & Tourism (http://www.ifitt.org/)- Pacific Asia Travel Association (http://www.pata.org/)- Tourism Industries Network (http://www.tinet.ita.doc.gov/)- United Nations Industry and Environment Programme (http://www.unep.org/)- World Association of Tr avel Agencies (http://www.kenpubs.co.uk/watanetwork/)
- World Tourism Organization (http://www.world-tourism.org/)S/C/W/51
Page 12
Table 1:  Classificati on of International
Border
Workers
Temporary
immigrants6
Permanent
immigrants6
Nomads6
Refugees8Transit
Passengers7
Members of the
armed forces9
Diplomats9Representation
of consulates9Tourists1Same-day
visitors
Non-
residents
(foreign-
ers) Crew
members
(non-
residents)4Nationals
residing
abroadCruise
passen-
gers3Crews5 Day
Visitors2Main
purpose
of visitLeisure,
recreation,
holidays
Business &
professionalVisiting
friends &
relatives
Health
treatment
OthersReligion &
pilgrimagesVisitorsIncluded  in
tourismstatisticsTravellersNot included i n
 tourism statistics
1Visitors who spend at least one night in the country visited, but less than one year.
2Visitors who arrive and leave the same day for leisure, recreation and holidays;  visiting friends and relatives; business
dprofessional;  health treatment,  religion, pilgrimages and other tourism purposes, including transit day visitors en route to or
from their destination countries.
3Persons who arrive in a country aboard cruise ships [as defi ned by the International Maritime Organization (IMO), 1965] and
who spend the night aboard ship even when disembarking for one or more day visits.
4Foreign air or ship crews docked or in lay over and who use the accommodation establishments of the country visited.
5Crews who are not residents of the country visited and who stay in the country for the day.
6As defined by the United Nations High Commissioner for Refugees, 1967.
7Who do not leave the transit area of the airport or the port, including transfer between airports or ports.
8As defined by the United Nations High Commissioner for Refugees, 1967.
9When they travel from their country of origin to the duty station and vice-versa (including household servants and dependants
accompanying or joining them).
Source  :  World Tourism Organization as found in OECD, Tourism Policy and International Tourism in OECD Countries   .
(OCDE/GD(97)173, Paris, 1997.S/C/W/51
Page 13
Table 2: Attributing SICTA Tourism-dedicated Activities to the GATS Services Sectoral
Classification List a
Draft list
                                                     
a Some SICTA tourism-dedicated activities not concerned with  the supply of commercial services (administration,
trade-union services) have not been included in the list.  Some activities have been merged for presentation.Sector 1 - Business services
. buying, selling or letting of own or leased
tourism property
. real estate agencies for tourism properties. tourism property management. automobile rental
. motorcycle rental
. recreational vehicle, camper, caravan rental. rental of watercraft and related facilities. rental of bicycles
. rental of ski equipment. rental of tourism-related goods
. tourism and tourism market research
. tourism business and management consultancy
activities
. tourism architecture and engineering
. tourism advertising
. passport photographers. translation services. information bureau
. visitor and convention bureau
Note:  Neither SICTA nor the GATS classification specify travel clinics, travel assistance (related to, but different from,
travel insurance) and repatriation services (can be part of travel assistance).  Under "community, social and personal
services" SICTA includes "Travellers Aid Societie s" ("usually consisting of voluntary members").
Sector 2 - Communication services
Note: Neither SCITA nor the GATS classification specify destination data bases.
Sector 3 - Construction and related engineering services. construction of commercial facilities (hotels, etc.)
. construction of recreational facilities (ski areas, golf courses, marinas, etc.). civil works - transportation facilities
. resort residences - second homes, weekend homes
Sector 4 - Distribution services
. retail sale of travel accessories, luggage
. other retail sale of travel accessories in specialized stores. retail sale of skin diving and scuba equipment
. retail sale of ski equipment
. retail sale of camping and hiking equipment. retail sale of gift and souvenir shops
Note:  Franchising is mentioned by the GATS classification, not by SICTA
Sector 5 - Educational services
. hotel schools
. tourism degree programmes. recreation and park schools
. other tourism-related education
. ski instructionS/C/W/51
Page 14
Sector 6 - Environmental services
Note:  Environmental services outlined in the GATS (sewage, refuse disposal, sanitation and similar, and other services)
offer a vast scope for singling out touris m-related services (e.g. beach cleaning).  Environmental activities are not specified
in SICTA.
Sector 7 - Financial services
. travel insurance
. “all payment and money transmission services, including consumer credit, montage, charge and debit cards,
travellers cheques and bankers drafts” (GATS)
Note:  Under this title, GATS is more specific than SICTA, and the GATS Annex on Financial Services is more specific than
the overall GATS Services Sectoral Classification List.
           The term “travel insurance” is explained by SI CTA as “covering accidental death while travelling away from home”,
while it normally covers also medical assistance, hospitalizati on, emergency repatriation for health reasons and repatriation
of the body in case of death.
Sector 8 - Health-related and social services
. physical fitness facilities
. travel clubs
. traveller aid societies
Note:  Under health-related and social services, neither the GATS classification nor SICTA are specific about services and
activities aimed at providing speciali zed medical treatment to tourists.
Sector 9 - Tourism and travel-related services
. hotels and motels with restaurants
. hotels and motels without restaurants. hostels and refuges
. camping sites, including caravan sites
. health-oriented accommodation. other provisions of lodging. bars and other drinking places
. full-service restaurants
. fast-food restaurants and cafeterias. institutional food services, caterers. food kiosks, vendors, refreshment stands
. night-clubs and dinner theatres
. travel agents. tour operators, packagers and wholesales. ticket offices
. guides
Note:  WTO/UN recommendations regarding standard classification of tourism accommodation are more specific and use
different terminology than SICTA.
           Restaurants, bars and canteens have been shown to make allowance for the GATS classification of “Tourism and
Travel-Related Services”, although SICTA identifies such activities as partly involved in tourism but representing a mediumpercentage of sales to tourism, as well as a medium share of tourism purchases (between 20 and 60 percent)S/C/W/51
Page 15
Sector 10 - Recreational, cultural and sporting services
Note:  No SICTA-identified activity is classified as “dedicated” to tourism and those representing a medium percentage of
sales to tourism include:
. dramatic arts, music and other arts activities
. operation of ticket agencies
. other entertainment activities. amusement parks. museum of all kinds and subjects
. historic sites and buildings
. nature and wildlife preserves. operation of sporting facilities. activities relating to recreational fishing
. gambling and betting operations, casinos
. operation of recreational fairs and shows
Sector 11 - Transport services
. interurban rail passenger services
. special rail tour services. scheduled interurban bus services
. long distance tour buses
. local tour vehicles. cruise ships. ship rental with crew
. inland water passenger transport with accommodation
. inland water local tours. supporting land transport activities. supporting water transport activities
. supporting air transport activities
. scheduled air passenger transport. non-scheduled air passenger transport. aircraft rental with crew
Note:  Neither the GATS classification nor SICTA specify com puter reservation systems (CRS) services.  CRS services are
mentioned, however, in the GATS Annex on Air Transport Services.
Sector 12 - Other services not included elsewhere
. international tourism bodies
Source: World Tourism Organization, Seminar on GATS Implications for Tourism
, 1995.S/C/W/51
Page 16
Table 3:  International Tourism Receipts as Percentage of the Gross National Product (GNP)a
Twenty-five Countries Recording the High est Contribution of Tourism to GNP
1995 1990 1985
% of tourism
receipts to
GNPrank% of tourism
receipts to
GNPrank% of tourism
receipts of
GNPrank
Maldives 83.3 1 67.9 4 57.7 4
Anguilla 80.3 2 76.1 3 60.0 3
Antigua, Barbuda 72.3 3 85.6 2 70.7 2
Br. Virgin Is. 69.5 4 95.7 1 74.7 1
US Virgin Is. 60.8 5 51.9 5 51.2 5
Cook Is. 56.3 6 23.9 19 - -
St. Lucia 51.0 7 41.5 9 26.2 11
Macau 42.0 8 42.3 8 - -
Guam 41.7 9 40.6 11 32.1 9
Bahamas 41.6 10 45.5 7 46.1 6
Aruba 41.0 11 40.3 12 - -
Barbados 40.4 12 29.1 16 26.0 12
Guadeloupe 38.2 13 16.4 26 8.8 27
Jamaica 33.8 14 19.8 22 23.6 13
St. Kitts & Nevis 31.1 15 41.4 10 40.3 7
Gibraltar 29.8 16 49.8 6 12.2 22
Bermuda 29.6 17 30.5 15 32.2 8
Montserrat 28.0 18 19.0 23 22.2 15
Netherlands, Antilles 27.9 19 24.2 17 17.2 17
Martinique 27.4 20 17.2 25 6.6 34
Vanuatu 27.2 21 23.9 18 15.6 19
St. Vincent, Gren. 23.2 22 30.6 14 20.9 16
Grenada 21.7 23 18.0 24 22.8 14
Seychelles 20.9 24 35.6 13 31.3 10
Cyprus 20.8 25 22.2 20 15.7 18
Source:  Calculations by World Tourism Organization (WTO) on tourism receipts data supplied by c ountries/territories and
GNP data supplied by the World Bank , as found in World Tourism Organization, Tourism Economic Report, 1998.
aList limited to countries with both International Tourism Receipts and GNP available.  See appendix for reference tableS/C/W/51
Page 17
Table 4:  Employees in the Hotel Industry Worldwide, 1995
RegionEmployees
(thousands)%Rooms
(thousands)Employees
per
room ratio
Total 11,317 100 12,249 0.9
Africa 1,259 11.1 384 3.3
Americas 4,062 35.9 4,494 0.9
Caribbean 278 9.9 165 1.7
Central America 232 6.5 48 4.8
Northern America 2,268 4.2 3,754 0.6
Southern America 1,284 4.8 527 2.4
Asia-Pacific 2,862 25.3 1,701 1.7
North-eastern Asia 1,120 16.6 759 1.5
South-eastern Asia 731 7.1 565 1.3
South Asia 472 0.0 143 3.3
Australasia & Pacific 539 4.0 234 2.3
Europe 2,679 23.7 5,492 0.5
EEA 1,874 16.6 4,365 0.4
Other Europe 805 7.1 1,127 0.7
Middle East 455 4.0 179 2.5
Source:  Compilation by World Tourism Organization (WTO) based on data from the International Hotel Association, as
found in World Tourism Organization, Tourism Economic Report, 1998.
aRegistered hotels.
bEEA = European Economic Area, or members of the European Union and European Free Trade Association.S/C/W/51
Page 18
Table 5:  Employment in Tourism for Industrial Countries, 1993
Employment in Tourism
(thousands)Share of Employment of
Tourism in the Total Labour
Force (%)
total direct indirect total direct indirect
Greece 360 220 140 10.0 6.1 3.9
Spain 1,400 323 577 9.1 5.4 3.7
Switzerland 293 205 89 8.2 5.7 2.5
Italy (1994)a1,722 1,063 659 7.7 4.8 2.9
France 1,200 895 305 4.8 3.6 1.2
Netherlands 200 149 51 2.8 2.1 0.7
Belgium 74 55 19 2.0 1.5 0.5
Germany 1,800 6.5
Luxembourg 12 6.4
Australia 458 6.0
Portugal 250 5.6
Sweden 153 3.4
Denmark 97 2.6
Japan 990 1.6
Austria 586 13.9
United States 6,000 5.1
Canada 467 4.0
Norway 54 3.4
Iceland 4 3.0
Turkey 129 0.7
Source:  OECD, Tourism Policy and International Tourism in  OECD Countries 1992-1993;  Special Feature “Tourism and
Employment”, 1995, p. 14, as found in World Tourism Organization, Tourism Economic Report, 1998.
aSixth report on Italian Tourism, International Edition, 1996 , Presidenza del Consiglio del Ministri Dipartimento del
Turismo, pp. 59-77.S/C/W/51
Page 19
Table 6:  International Tourism and Fare Receipts and Expenditure
Economic Groupings Overview, Balance 1995 (including estimations for missing data)
Total
tourism and
fare balance
(US$ bn)International
tourism
balance
(US$ bn)International
fare balance
(US$ bn)
World 00 0
Org. for Economic Co-op and Development (OECD) -27.0 -23.5 -3.5
Non-OECD 27.0  23.5 3.5
Southern African Development Community (SADC) -0.5 -0.2 -0.2
Latin America Integration Association (LAIA) 1.6 1.9 -0.2
Association of South-East Asia Nations (ASEAN) 15.6 13.4 2.2
Indian Ocean Countries (IOTO) 20.9 16.4 4.4
European Union (EU) -6.8 -7.3 0.5
Oceania 6.2 5.4 0.8
Mediterranean Countries 58.1 57.7 0.4
Expanded Middle East 3.3 2.5 0.8
Classifications by the World Banka
Income group and Indebtedness
Low-income (=<US$725) 9.0 7.8 1.2
Low-income, severely indebted -0.4 -0.3 -0.0
Low-income, moderately indebted 5.2 3.3 1.9
Low-income, less indebted 4.2 4.8 -0.6
Lower-middle income (US$726-2,895) 13.4 11.7 1.7
Upper-middle-income (US$2,896-8,955) 9.7 8.9 0.8
Middle-income, severely indebted 6.7 6.7 -0.1
Middle-income, moderately indebted 5.2 5.4 -0.1
Middle-income, less indebted 7.4 4.9 2.5
Not classified by indebtedness 3.9 3.6 0.3
High-income -32.9 -29.1 -3.8
High-income OECD (>= US$8,956) -39.8 -34.8 -5.0
High-income non-OECD (>= US$8,956) 7.0 5.8 1.2
Major export category
Exporters of manufactures -64.3 -55.8 -8.5
Exporters of nonfuel primary products 2.7 2.4 0.4
Exporters of fuel (mainly oil) -7.9 -7.4 -0.5
Exporters of services 4.9 4.4 0.5
Diversified exporters 60.2  52.3 7.9
Not classified by export category 3.6 3.5 0.2
Source:  Estimations by the World Tourism Organization (WTO) based on data received from c ountries/territories and the
International Monetary Fund (IMF), as found in World Tourism Organization, Tourism Economic Report, 1998.
aExcluding countries/territories with a population less than 30,000 not classified by the World Bank.S/C/W/51
Page 20
Table 7:  International Tourism Balance of Account expenditure (excluding fare receipts)
Countries with the Highest Surplus, 1995, 1985 (>= US$1 bn)
Balance of Tourism Account
 (US$ mn)
1995 1985
Spain 21,161 7,141
United States 15,282 -6,796
Italy 15,032 6,473
France 11,199 3,385
China  5,045 936
Thailand  4,292 891
Turkey  4,045 1,158
Singapore  3,339 1,047
Indonesia  3,056 -66
Mexico  3,011 643
Macau  3,000 -
Austria  2,910 2,361
Greece  2,784 1,060
Australia  2,496 -856
India  2,345 626
Portugal  2,247 902
Argentina  2,239 376
Malaysia  2,119 -536
Philippines  2,028 957
Switzerland  1,728 746
Egypt  1,522 795
Dominican Republic  1,519 284
Cyprus  1,490 341
Czech Republic  1,245 -
Poland  1,200 -66
Bahamas  1,133 872
Tunisia  1,074 425
Source:  World Tourism Organization (WTO), as found in World Tourism Organization, Tourism Economic Report , 1998.S/C/W/51
Page 21
Table 8:  International Tourism Balance of Account (excluding fare receipts and expenditure)
Countries with the Largest Deficit, 1995, 1985 (<=US$ -02.bn)
Balance of Tourism Account
(US$ mn)
1995 1985
Germany -34,454 -8,061
Japan -33,566 -3,677
Russian Federation -7,287 -
Netherlands -5,693 -1,787
United Kingdom -5,664 751
Taiwan, China -5,171 -466
Belgium -3,496 -387
Kuwait -2,215 -1,885
Canada -2,208 -1,027
Brazil -2,148 299
Sweden -1,975 -777
Norway -1,835 -967
Venezuela -1,054 -181
Finland -667 -234
Denmark -608 -84
Iran -415 -481
Israel -364 552
Pakistan -335 -16
Korea, Republic of -316 178
Bangladesh -206 -22
Libya -206 -407
Source:  World Tourism Organization (WTO), as found in World Tourism Organization, Tourism Economic Report , 1998.S/C/W/51
Page 22
Table 9:  International Tourism and Fares Balance of Account
Category of Countries, 1995
(tourism & fares >=US$ +/- 1bn or fares >=US$ +/- 0.2 bn)
Balance of Account (US$ mn)
Tourism & fares Tourism Fares
Surplus on both tourism Spain 21,880 21,161 719
And fares (43 in total) United States 19,503 15,282 4,221
Thailand 4,995 4,292 703
Mexico 3,309 3,011 298
Malaysia 2,589 2,119 470
Portugal 2,579 2,247 332
Egypt 1,699 1,522 177
Dominican Republic 1,584 1,519 65
Cyprus 1,556 1,490 66
Tunisia 1,339 1,074 265
New Zealand 1,262 880 382
Jamaica 1,026 921 105
Colombia 373 29 344
Surplus on tourism, deficit Italy 14,147 15,032 -885
On fares (29 in total) France 10,566 11,199 -633
Greece 2,659 2,784 -125
Australia 2,472 2,496 -24
Philippines 1,925 2,028 -103
Argentina 1,884 2,239 -355
Switzerland 1,599 1,728 -129
Poland 1,148 1,200 -52
Bahamas 1,120 1,133 -13
Puerto Rico 739 995 -256
Deficit on tourism, surplus Netherlands -3,275 -5,693 2,418
On fares (22 in total) Belgium -3,248 -3,496 248
Kuwait -2,215 -2,215 0
Venezuela -1,029 -1,054 25
Finland -427 -667 240
Pakistan -6 -335 329
Korea, Republic of 642 -316 958
Deficit on both tourism and Japan -42,084 -33,566 -8,518
Fares (22 in total) Germany -35,163 -34,454 -709
United Kingdom -6,138 -5,664 -474
Canada -3,262 -2,208 -1,054
Brazil -2,624 -2,148 -476
Sweden -2,369 -1,975 -394
Source:  Calculations based on World Tourism Organization (WTO) and International Monetary Fund (IMF) data, as found
in World Tourism Organization, Tourism Economic Report, 1998.S/C/W/51
Page 23
Table 10:  Summary of Specific Commitments
COUNTRIES 09.A. 09.B. 09.C. 09.D TOTAL
Angola X 1
Antigua and Barbuda X 1
Argentina X X X X 4
Australia X X X 3
Austria X X X 3
Bangladesh X 1
Benin X 1
Bolivia X X 2
Botswana X X 2
Brazil X 1
Bulgaria X X 2
Burkina Faso X X 2
Burundi X X X 3
Cameroon X X 2
Canada X X 2
Central African Republic X X X X 4
Chad X X 2
Chile X X X 3
Colombia X X 2
Congo X X X 3
Congo R.P X X X 3
Costa Rica X X X 3
Côte d’Ivoire X X X 3
Cuba X X X 3
Czech Re public X X X 3
Djibouti X 1
Dominica X 1
Dominican Republic X X X 3
Ecuador X X 2
Egypt X X X X 4
El Salvador X X X 3
European Community X X X 3
Fiji X 1
Finland X X X 3
Gabon X X 2
Gambia X X X 3
Ghana X X 2
Grenada X 1
Guatemala X X X X 4
Guinea X X 2
Guinea-Bissau X 1
Guyana X X 2
Haiti X 1
Honduras X X X 3
Hong Kong X X 2
Hungary X X 2
Iceland X X X 3
India X X 2
Indonesia X X X 3
Israel X X X 3
Jamaica X X 2
Japan X X X 3
Kenya X X X 3
Korea, Republic of X X X 3
Kuwait X X X 3
Lesotho X X X 3
Liechtenstein X X X 3S/C/W/51
Page 24
COUNTRIES 09.A. 09.B. 09.C. 09.D TOTAL
Macau X X 2
M a l a w i XXXX4
Malaysia X X 2
Mali X 1
Malta X X 2
Mauritania X X X 3
Mauritius X X X X 4
Mexico X X X 3
Mongolia X X X 3
M o r o c c o XXXX4
Myanmar X X 2
Namibia X X 2
New Zealand X X X 3
Nicaragua X X X 3
Niger X X X 3
Nigeria X X X 3
Norway X X X 3
Pakistan X X 2
Panama X X 2
Papua New Guinea X 1
Paraguay X X X 3
Peru X X 2
Philippines X X 2
Poland X X 2
Qatar X 1
Romania X X X 3
Rwanda X 1
St. Kitts & Nevis X 1
St. Lucia X 1
St. Vincent & Grenadines X 1
Senegal X X 2
S i e r r a  L e o n e XXXX4
Slovak Republic X X X 3
Slovenia X X 2
Solomon Islands X 1
South Africa X X X 3
Sri Lanka X X 2
Suriname X X 2
Swaziland X 1
Sweden X X X 3
Switzerland X X X 3
Tanzania X 1
Thailand X X X 3
Togo X X X 3
Trinidad and Tobago X X 2
Tunisia X X 2
Turkey X X 2
Uganda X X 2
United Arab Emirates X X 2
Uruguay X X X 3
USA X X X X 4
Venezuela X X X 3
Z a m b i a XXXX4
Zimbabwe X X X 3
TOTAL 112 89 54 13 268
Legend:
09.A. Hotels and Restaurants09.B. Travel Agencies and Tour Operators Services
09.C. Tourist Guides Services
09.D. OtherS/C/W/51
Page 25Table 11:  Number of Countries by Mode of Supply - Tourism and Travel-Related Services
Market Access National TreatmentMode of SupplyFull Part No Full Part No
1) Cross-border Supply 33 49 30 37 48 27
29% 44% 27% 33% 43% 24%
2) Consumption Abroad 55 47 10 58 42 12
49% 42% 9% 52% 38% 11%
3) Commercial Presence 25 86 1 49 61 2
22% 77% 1% 44% 54% 2%
4) Presence of Natural Persons 1 105 6 12 90 10
1% 94% 5% 11% 80% 9%S/C/W/51
Page 26
Table 12:  Percentage by Sector and Mode of Supply - Tourism and Travel-Related Services
(Percentages in each Activity)
Cross-border Consumption  abroad Co mmercial presence Natural PersonsI. MARKET ACCESSFull Partial No Full Partia lN o F u l l Partial No Full Partial No
Hotels and Restaurants 31% 23% 46% 54% 37% 9% 27% 72% 1% 3% 91% 6%
Travel Agencies and Tour Operators Services 49% 19% 31% 65% 20% 15% 27% 67% 6% 1% 88% 11%
Tourist Guides Services 56% 7% 37% 78% 13% 9% 41% 54% 6% 0% 85% 15%
Other 38% 31% 31% 38% 54% 8% 23% 69% 8% 0% 92% 8%
Cross-border Consumption abroad Co mmercial presence Natural PersonsII. NATIONAL TREATMENTFull Partial No Full Partial No Full Partial No Full Partial No
Hotels and Restaurants 37% 21% 42% 58% 30% 12% 51% 46% 3% 11% 79% 10%
Travel Agencies and Tour Operators Services 55% 15% 30% 70% 13% 17% 64% 27% 9% 17% 69% 15%
Tourist Guides Services 59% 4% 37% 85% 4% 11% 76% 15% 9% 13% 67% 20%
Other 54% 23% 23% 62% 38% 0% 54% 46% 0% 23% 69% 8%
Note:  Percentages may not add up to 100 due to rounding.  Basis of total is listed sectors.
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