C H7.3:TCoM//5 World Tourism at the Millennium PENNSYLVANIA STATE UNIVERSITY JUL 181993 DOCUMENTS COLLECTION U.S. Depository Copy An Agenda for Industry, Government and Education U.S. Department of Commerce U.S. Travel and Tourism Administration April 1993 Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/worldtourismatmiOOedge World Tourism at the Millennium An Agenda for Industry, Government and Education U.S. Department of Commerce David L. Edgell, Sr., Ph.D. U.S. Travel and Tourism Administration April 1993 PREFACE For those of us who have dedicated much of our lives and talents to the business which we know as travel and tourism, it is ever surprising to find that so many of our friends, neighbors, and even colleagues do not really understand the broad policy parameters, integrative aspects or the magnitude of this great industry. Everyone is clearly aware that assembling automobiles is an industry. Petroleum is an industry. Agriculture, real estate, ranching, and fishing are tangible industries. But people seem to find it hard to relate to tourism as a major global industry, to be compared with manufacturing, mining and the world's vast networks of electrical communications, satellites and electronic devices. Even the friendly reader may be surprised to make this finding. Furthermore, most of us, both in and out of the travel business, have a difficult time seeing the "big picture" in the sense of understanding the many ramifications of tourism in the world's productive society, of its powerful political-economic interactions, of its immense potential as an important social force — in brief, tourism's impact on the world and the world's impact on tourism. This publication, by looking at travel and tourism within the context of world society, economics and politics, suggests that a world populace which understands the intricacies of tourism relationships within our everyday life ultimately will yield a higher quality of life. In the book International Tourism Policy, the author summarizes this learning concept somewhat as follows: International tourism in the twenty-first century will be a major vehicle for fulfilling people's aspirations for a higher quality of life.... International tourism also has the potential to be one of the most important stimulants for global improvement in the social, cultural, economic, political, and ecological dimensions of future lifestyles. But what is tourism, exactly? The term does mean different things to different people. Indeed, tourism is a wide-ranging business in that it includes products and services from infinite components of the economy. Beef and wheat grown in Kansas, grapes turned to wine grown in California, and garden vegetables and fruits produced in all parts of the world may serve to feed visitors in New York or Chicago or San Francisco. But huge new engines of industry are the essential driving forces of the tourism business. Jet planes are assembled for airlines, to be paid for ultimately by travelers. Buildings of steel and concrete are constructed for hotels and airports. Travelers buy automobiles or rent them, with access to six-lane highways to reach every park, camp, monument, state, city and village in America. Visitors pay admissions at the gates of sports events along with the 111 entrance fees at theme parks and other natural, cultural and archaeological attractions, as well as at theaters, concerts, museums, etc. These are some of the holistic building blocks which make up the tourism industry. In sum, the diversity and complexity of the U.S. travel industry reflects that of the individual segments of which it is comprised. The "tourism product" representing expenditures by U.S. and interna- tional travelers within the United States falls largely in the categories of transportation, lodging, food and beverages, entertainment, recreation, and incidental purchases. Distribution of products and services to the traveler involve U.S. airline, bus, taxi, and rail systems, automobile services, passenger ship, commercial lodging, and on down the line. U.S. Industrial Outlook 1993 figures indicate that these travel-related products and services translated into employment for 6,120,000 people in 1992 with projections for 6,290,000 in 1993. The economic facts of tourism speak for themselves. It is estimated that in the year 1992, American consumers of the tourism product within the United States spent over 308 billion dollars. Inbound tourists arriving from abroad in 1992 added 55 billion dollars, for a total of over $360 billion, all for tourism services within the United States alone. For the world, such expenditures on domestic and international tourism amounted to an estimated 3.5 trillion dollars, making tourism the most lucrative composite industry in the world. In the eyes of the consumer there are many objectives, in the endless permutations of the tourism trade. Tourists are people, energized by personal wants and needs. Their singular common denominator is that they are mobile and that by definition they are motivated to leave the place where they reside, to travel to another place or several other places which they would like to visit because of business or pleasure. Collectively, pleasure travelers' wants are endless: sunny hide-aways, panoramic vistas, exotic cultures, wilderness adven- ture, historic sites, and a tremendous variety of indoor events and activities as well: all of these things, each with infinite diversions. A basic purpose of this publication is to inform and update the reader on the complex nature of tourism and the immense mechanics of its implementa- tion. It also is designed to increase the knowledge about the industry in order to assist those people who plan, develop, market, manage and protect areas and facilities, infrastructure systems and a variety of support operations which hold an important key to the future progress of the tourism industry. It deals with the symbiotic ties between the economies of internal and international trade in tourism and the links to related non-trade issues, such as increased benefits from cultural exchanges, quality environments and the promotion of mutual humanitarian goodwill. It suggests that an increased dialogue on tourism issues, both locally and globally, must take place, in order to enhance and enrich the tourism product. It seeks to demonstrate that not only does IV international trade in tourism have an impact on the economic, foreign relations and social fabric of this nation, but also that its expected growth makes clear that tourism policy must be an integral part of overall policies and plans of governmental programs and private sector initiatives. Tourism policy in the United States needs to be cultivated and under- stood by everyone. Knowledge about the impact tourism policy has on com- petition, marketing, research, planning and development keeps tourism decision-makers better informed and more responsive to consumers while making prudent decisions that preserve and conserve environmental systems and other facilities. The goal of this decisionmaking is to improve the quality of tourism products and ensure user satisfaction. Only recently have we seen quality travel and tourism courses and programs of study increasing at colleges and universities or new and innovative training programs instituted at the tourism work place. Tourism, as a serious field of inquiry has developed slowly. Now, due to interest and recognition of its significant impact on the economy, we are beginning to see a rapid increase in substantive articles, research, books and documents. This recognition is generating interest in tourism policy which is beginning to find its place in the hierarchy of this nation's economic and social goals. This interest and recognition of tourism policy needs to take place today if quality tourism is to grow in the future. Tomorrow will be too late. This publication deliberately is as brief and non-technical as possible to appeal to a broad spectrum of interest in tourism; it is designed to provide policy makers in the public and private sectors, travel industry executives, professionals interested in tourism, college and university students, and the general public with an introduction and examination of the most important issues in tourism and its many components. It is organized to assist readers with different interests to find appropriate information. The author extends his appreciation to his many travel industry friends, colleagues, university associates and others for their enthusiasm, investment of time and energy, and patience in communicating important concepts and ideas which are the foundations for this look at World Tourism at the Millennium. Much of the editorial assistance and coordination of this publication has come from Henry Riegner. Of special note and help, beyond the call of duty, are substantive changes in the text, style and format to improve this document as contributed by Dr. Ginger Smith. Information, documents and other assistance has been graciously provided by Ron Erdmann, Wanda Barquin, Linda Harbaugh, and Terry Smith Labat which I greatly appreciate and wish to acknowledge fully. I am also deeply indebted for the research assistance and helpful comments of three graduate student interns who devoted many hours in reviewing, researching and assisting in this policy document: Jacqueline Arroll, The American University; Derek Liston, The Georgetown University; and Mary McChesney, The George Washington University. Also, a special note of thanks to Jean Arey (recently retired from USTTA) for reading and commenting on this document. Valuable support and clerical assistance was provided by Sheila Williams and Margie Parker. Without this help this publication would not have been possible. Any errors or omissions are the sole responsibility of the author. David L. Edgell, Sr., Ph.D. United States Travel and Tourism Administration U.S. Department of Commerce VI TABLE OF CONTENTS Page Preface iii Chapter I Introduction 1 Services Revolution and Tourism Policy 2 Overview of the Services Industry 2 Services in International Agreements 3 Services Within the United States 3 Tourism Defined 4 Tourism More Broadly Defined 5 Foundation of Tourism Policy 5 Endnotes 8 Chapter II International Tourism as a Commercial and Economic Activity 11 Global Importance 11 Services Export 12 Invisible Export 13 Travel and Passenger Transportation 13 Comparative Advantage 16 Employment 17 Income 18 Multiplier Effect 19 Economic Development 20 Tourism Impact on Local Economy 21 Rural Tourism in the United States 21 Endnotes 24 Chapter III Political and Foreign Policy Implications of International Tourism 27 Tourism Facilitation 28 Tourism and Foreign Policy 29 International Terrorism 30 International Tourism Policy for the United States 31 International Aviation 32 International Agreements and Understandings 34 Tourism Agreements 34 Trade and Investment Agreements 34 General Agreement on Trade in Services (GATS) 35 Helsinki Accord 36 vn Accord of Mutual Understanding and Cooperation in Sports 37 Intergovernmental and International Organizations 37 Organization of American States (OAS) 37 Organization for Economic Cooperation and Development (OECD) 38 Asia-Pacific Economic Cooperation (APEC) 39 World Tourism Organization (WTO) 40 Pacific Asia Travel Association (PATA) 40 Endnotes 41 Chapter IV Sociocultural and Environmental Aspects of International Tourism 45 Sociocultural Problems 46 Health and Tourism 48 Avoiding Sociocultural Problems 48 A New Means of Economic Development 51 Some Cases of Heritage Tourism 52 Sustainable Tourism Development: Concerns and Possible Solutions for the Environment 52 The Concept of Ecotourism 56 The Challenge 59 Endnotes 59 Chapter V Projections and Implications of International Tourism Through the Year 2000 63 Change in the World of Tourism 63 Assumptions 64 Basic Factors 64 Results Projected 66 Implications of Projections 69 Economic Issues 69 Technological Issues 69 Sociocultural Issues 70 International Political Issues 71 Environmental Issues 71 Travel Facilitation and Transportation Issues 72 Conclusion 73 Endnotes 73 Chapter VI Conclusions and Recommendations 75 Tourism Policy, National and International 75 Telecommunications Technologies of Tourism 76 Vlll Seasonality 77 Tourism and the Environment 78 Human Resources Development 79 Quality Services 80 Health, Security, and Safety 80 Political Change and Natural Disasters 81 Barriers to International Travel 82 Tourism and World Peace 82 Endnotes 83 Selected Bibliography 85 IX CHAPTER I Introduction The world is becoming a global village in which people from different continents are made to feel like next door neighbors. In facilitating more authentic social relationships between individuals, tourism can help over- come many real prejudices, and foster new bonds of fraternity. In this sense tourism has become a real force for world peace. Pope John Paul II Since the industrial revolution and throughout the last century, and indeed through the two World Wars, we have measured the wealth of nations almost entirely on the development of tangible goods: mining and manufactur- ing, agriculture and livestock — and on the construction of infrastructure: highways and dams and oceanliners, railroads, and other vehicles which transport people and tangible assets from place to place around the world. In recent years, scientific and technological discoveries have overwhelmed many of our older industries. A bright new world of innovation has flooded mankind with services ... consumer services — from telephones to facsimiles to a new age of computers, from cameras and movies to radio and television, from satellites to the universe of telecommunications. In this world of tech- nological devices and services we have founded a grand new service industry known today as tourism — an industry which makes use of many of these innovations and startling changes in the world's economy. International tourism in the twenty-first century will be a major vehicle for fulfilling the aspirations of mankind in its quest for a higher quality of life, a part of which will be "... facilitating more authentic social relationships between individuals..." and laying the groundwork for a peaceful society through global touristic contact. Tourism also has the potential to be one of the most important stimulants for global improvement in the social, cultural, economic, political and ecological dimensions of future lifestyles. Finally, tourism will be a principal factor for creating the potential for greater international understanding and goodwill, primary ingredients for peace on earth. In this view, the highest purpose of tourism policy is to integrate the economic, political, cultural, intellectual and environmental benefits of tourism for people, destinations and countries in order to improve the global quality of life and provide a foundation for peace and prosperity. 1 As the human race approaches the millennial threshold, the dynamic progress that has been made in international tourism will accelerate even more. This will be true even though the last half of the twentieth century witnessed tremendous changes in transportation and communication technol- ogy, the twin engines which have propelled enormous changes in worldwide tourism. It has been clear in the past, and will be true in the future, that peace and prosperity are the keys which best open the door to tourism growth. Mankind in the next century will anticipate that quality international tourism will encourage greater happiness and improve the human and social aspects of life while at the same time providing opportunities for economic development, job creation and international trade. As a way of introduction, this first chapter will position international tourism within the larger context of the worldwide services economy and set the stage for confronting the policy implications of tourism. There will be a special focus on the United States as the major services economy in the world and as the number one exporter of trade in tourism. This chapter will focus on the importance of tourism policy as a driving force for the growth of the industry in future years. Services Revolution and Tourism Policy The nature of the world's productive economic system is changing in a very dramatic way. No longer does the goods-producing economic base domi- nate as it has in the past. Instead, we have entered the services era. The United States is already in a "Services Revolution," much as the nation was in an "Agriculture Revolution" over 200 years ago and an "Industrial Revolu- tion" over 100 years ago. 2 Since World War II, the United States has moved steadily from a capital-intensive industrial economy based on physical re- sources to a diversified services economy based on human resources. It is difficult to define this transition because the country is in the middle of this services "explosion." The services sector, unlike the goods-producing sector, traditionally has not been able to attract the attention of policy makers. Recently, however, as the economic, political and social values of tourism have become better understood, the interest in tourism policy is beginning to increase. Overview of the Services Industry International trade in services is a diverse and fast-growing array of activities such as tourism, engineering, consulting, banking, transportation, motion pictures, insurance, franchising, construction, advertising and tele- communications. Services trade is now basic to the growth and improved productive system of the United States, even though recognition of its impor- tance in international trade has been slow in coming. This services-growth phenomenon is not just confined to the United States; it is happening around the world. Yet, more importantly, from a basic international economic per- spective, many countries are recognizing that they must capitalize on their comparative advantage in international trade in services to maintain or im- prove their competitive edge in the global market. 3 Chapter Two explains the economic and commercial aspects of tourism within the services context. Services in International Agreements Progress for the recognition of services in international agreements has only recently been gaining attention. Part of the delayed recognition has been due to a lack of accurate and comprehensive services data and because the service sectors in most countries are overwhelmingly oriented to the domestic market. This has also been true for the United States, but since 1984, domestic travel has grown only 38 percent to 1.4 million person trips in 1992. When compared to the 69 percent growth for international travel to the United States between 1984 and 1992, and coupled with the high per capita expenditures (5 times that of domestic travelers), it is no wonder that the travel industry is now looking more to the international market. In recent years there has been an effort to get barriers to trade in services recognized in an international context through the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement (NAFTA), bilateral air transport agreements, and through other regional and global international organizations such as the Organization of Economic Co- operation and Development (OECD), the Asia Pacific Economic Cooperation (APEC), the Organization of American States (OAS), and the World Tour- ism Organization (WTO). 4 It is safe to argue that most, if not all, countries of the world realize the growing importance of international trade in services in general, as well as the large role the travel and tourism industry plays in this sector. Since its inception the GATT (currently the only global medium of trade liberalization) has been devoted exclusively to lowering barriers (mainly tariffs) on goods and commodities. Finally in 1986, the GATT trade ministers agreed to study the impact of services trade on member country economies and to examine ways to eliminate service trade restrictions. The effect of these studies coupled with some hard negotiating resulted in the inception of parallel negotiations called the General Agreement on Trade in Services (GATS). The purpose of the GATS is to focus greater attention on the set of issues that arise in international discussions of trade in services such as air transport services, financial services, and the movement of natural persons (labor immigration); all of which have direct impact on the travel and tourism industry. Although the GATS has yet to be concluded, its existence alone is evidence of the greater policy recognition of trade in services. This agreement, as well as others negotiated on a bilateral or regional basis, can have a major impact on how countries conduct international trade in tourism well into the next century. Chapter Three explains these topics in greater detail. Services Within the United States Additional encouraging news for the services sector in the United States was the passage of the Trade and Tariff Act of 1984 which established the Service Industries Development Program. The program directs the Secretary of Commerce to seek ways of improving the international competitiveness of 3 U.S. service industries. The trade bill in many respects marks the coming of age of service exports, including tourism. The legislation gives the President the same authority to deal with unfair trade practices in areas such as tourism, transportation, insurance, communications, data processing and finan- cial services, as he or she has in the "goods producing sector." 5 The growth of tourism is part of the overall shift in the United States and other highly industrialized nations from prior strength in goods-producing industries to rapid increases in the service industries. 6 This metamorphosis into a service economy took place in the early 1940s when service industry employment topped 60 percent for the first time. As far back as 1968, Victor Fuchs noted: The United States is now pioneering in a new state of economic development. During the period following World War II this country became the first nation in which more than half of the employed population is not involved in the production... of tangible goods. The transition from an agricultural to an industrial economy, which began in England and has been repeated in most of the Western world, has been characterized as a revolution. The shift from industrial to service employment, which had advanced furthest in the United States, but is evident in all developed economies, has proceeded more quietly, but it too has implications for society... of revolutionary proportions. 7 Services today account for 68 percent of the Gross National Product (GNP) in the United States and for more than 60 percent of output produced and consumed in Western Europe. It is growing rapidly the world over. This segment of the U.S. economy employs 76 percent of the workforce. 8 The U.S. Department of Labor has predicted that, in the next decade, nine of every 10 new jobs created will be in the service industries. Tourism Defined 9 Tourism has thus far been included as part of the services industry and is included in the U.S. trade account as "business services." Yet, in terms of the balance of trade account, a more specific definition would be "travel and transportation." In the official U.S. trade statistics, under "Types of Business Services in International Trade," there is a separate category referred to as "travel and transportation" with the following definitions: • Travel: Services provided to U.S. citizens traveling abroad (U.S. imports) and international visitors to the United States (U.S. exports). • Passenger Transportation: Transportation provided by foreign carriers to U.S. residents for transportation abroad (U.S. imports) and by U.S. carriers to foreign residents (U.S. exports). 1(> 4 While these definitions serve to describe tourism data as part of the trade statistics in the United States, they generally represent the definitional ap- proaches taken by many countries in the world. Tourism More Broadly Defined Travel and tourism (these two words are used interchangeably in this text) mean different things to different people. To many individuals and policymakers travel and tourism is thought of only as that activity pursued with one's leisure time. In fact, it is far broader than that, considerably more complicated, and a very significant segment of the world's economy. A more detailed explanation will follow over the next several chapters. For now, it will suffice to say that travel and tourism has strong linkages to cultural pursuits, foreign policy initiatives, economic development and, as stated earlier, it provides an opportunity to increase worldwide understanding, mutual goodwill and peace. The tourism industry includes the buying, selling, and management of services and products (to tourists) which might range from managing a resort or airline to renting cars to operating a convention center or a cruiseship fleet. The tourism industry demands the most creative and innovative man- agers because tourism represents one of the most perishable products that exists. If the hotel rooms, airline seats or restaurant tables are not filled when they are available, they are gone forever. There is no opportunity to put such products in storage or to carry them in inventory. The tourism industry is also the most wide ranging in the sense that it demands products from other sectors of the economy. For example, the beef and wheat grown in Kansas helps feed the international visitors in New York City or Los Angeles. Airplanes must be produced, computer reservation systems developed, and steel and concrete manufactured for hotel construction. The point is that there is no other industry in the economy that is linked to so many diverse and different kinds of products and services as may be found in the tourism industry. In order to plan for and provide rational order to such a diverse and dynamic industry, it is necessary to develop policies to assist the decision makers in this complex industry. Foundation of Tourism Policy The focus on tourism policy in this country realistically began to evolve in 1974. Senate Resolution 347, co-sponsored by 71 Senators and unani- mously agreed to by the Senate on June 24, 1974, authorized the Senate Commerce Committee to undertake a National Tourism Policy Study. The purposes of the study were "...to develop legislation and other recommenda- tions to make the Federal role in tourism more effective and responsive to the national interests in tourism, and the needs of the public and private sectors of the industry." 11 In October, 1976, the Committee issued the Study's first interim report entitled "A Conceptual Basis for the National Tourism Policy Study." This report gave an overview of legislation which affects tourism, tentatively identified the national interests in tourism and listed some of the problems associated with the Federal role in tourism at that time. In June, 1977, a second interim report was issued entitled "National Tourism Policy Study Ascertainment Phase." This report detailed and ana- lyzed input from the tourism and travel industry on the issues, problems, and needs of the State and local public and private sectors of the industry, both in general terms and in terms of their specific relationships with Federal agen- cies and programs. The last phase, entitled "National Tourism Policy Study Final Report," was completed in April, 1978. It incorporated findings from the earlier reports and made recommendations for a national tourism policy for the United States. After considerable discussion of the Study, debates in Congress and the Executive Branch, and consultations with States, cities, and the private sector, a compromise piece of legislation, the National Tourism Policy Act of 1981 was passed by Congress and signed by the President (October 16, 1981). This Act, which amended the International Travel Act of 1961, redefined the national interest in tourism and created the United States Travel and Tourism Administration (USTTA), which replaced the United States Travel Service as the nation's government tourism office. 12 The principal mission of the USTTA under the Act is to implement broad tourism policy initiatives, to develop travel to the United States from abroad as a stimulus to economic stability and to the growth of the U.S. travel industry, to reduce the nation's travel deficit, and to promote friendly under- standing and appreciation of the United States abroad. Through the passage and implementation of the Act, the importance of tourism policy within the U.S. Department of Commerce has been elevated. For example, the Act provides that the USTTA be headed by an Under Secretary of Commerce for Travel and Tourism. This is significant for many reasons. Not only does it put the head of USTTA on a level equal to that of other Under Secretaries of Commerce, but it also signals a shift in U.S. policy to give the tourism industry more recognition and credibility. The Act specifically mandated that two important tourism policy bodies be established. The first, the Tourism Policy Council, was established to ensure that the national tourism interest is fully considered in Federal decision-making. This interagency coordinating council consists of the Sec- retary of Commerce, who serves as Chairperson; the Under Secretary of Commerce for Travel and Tourism; the Director of the Office of Manage- ment and Budget; a representative of the International Trade Administration; the Secretary of Energy; the Secretary of State; the Secretary of Interior; the Secretary of Labor; and the Secretary of Transportation. The heads of agencies which are not members of the Council may be invited to attend meetings whenever matters affecting the interest of those agencies are dis- cussed. The mandate of the Council is to "coordinate policies, programs and issues relating to tourism, recreation or national heritage resources involving Federal departments and agencies." The Council is also directed to "seek and receive concerns and views of State and local governments and the Travel and Tourism Advisory Board with respect to Federal programs and policies deemed to conflict with the orderly growth and development of tourism." The Council is not empowered to coordinate State, local or private sector policies, but only those at the Federal level. The second tourism policy body established was the Travel and Tourism Advisory Board. The Board advises the Secretary regarding the implementa- tion of the National Tourism Policy Act and advises the Assistant Secretary for Tourism Marketing on preparing marketing plans for the U.S. Travel and Tourism Administration. The most recent major piece of legislation regarding the tourism in- dustry, the Tourism Policy and Export Promotion Act of 1992, was signed into law by the President on September 30, 1992, and offers new directions for the operation of the United States Travel and Tourism Administration. It is an amendment to the International Travel Act of 1961 and authorizes funding increases over the next three years to concentrate efforts on assisting regions of the United States develop and distribute marketing plans and materials to potential and existing international tourism markets. Major actions of the legislation include conducting a study on the feasibility of consolidating USTTA's foreign offices into three regional offices, creating a career Deputy Under Secretary for Tourism Trade Development, initiating a program of technical and financial assistance to help regions, states, and localities in the U.S. to promote themselves effectively in the foreign tourist markets, and placing a greater emphasis on cultivating tourism trade with the newly emerging nations of Eastern Europe and the Common- wealth of Independent States (formerly the Soviet Union). In addition, this legislation calls for the creation of a Rural Tourism Development Foundation to assist in expanding international tourism to rural American destinations. The Tourism Policy and Export Promotion Act of 1992 may very well set the stage for the direction of U.S. tourism policy through the turn of the century. The focus of the legislation, however, is mainly on promotion and marketing, with the concentration of a greater proportion of resources on untapped markets and lesser known destinations. While the National Tourism Policy Act of 1981 and the Tourism Policy and Export Promotion Act of 1992 have been major breakthroughs in tourism policy in the United States, there still exists a lack of awareness and understanding about tourism policy in this country. The broad range of economic, political, and social implications for tourism — both on the domestic and on the international fronts — is yet to be realized. One way of focusing attention on this need for recognition is to examine the larger role that tourism plays in this country, beyond its marketing and promotional aspects. The tourism industry will be faced with some difficult challenges over the next several years. Technology, whether information technology or new aerospace developments, will have an impact on tourism. The industry will need to develop effective plans to deal with political violence and environmen- tal disruptions to the tourism market. New and better approaches to adjusting to currency fluctuations, whether due to changes in the value of the dollar, devaluations of currencies or inflationary conditions, need to be pursued. The way in which the industry responds to these policy questions, and new ones as they arise, will determine its direction and maturity in the future. Endnotes 1 For a more complete explanation of tourism policy and its impact internationally and in the United States, see David L. Edgell, St., International Tourism Policy. Van Nostrand Reinhold, New York, 1990. 2 David L. Edgell, "USA and the International Traveler." Tourism Management, London, December 1983, p. 308. The idea of comparative advantage was first formulated by the classical economist David Ricardo. He reasoned that: "If traders were left alone to pursue their own profit by buying in the cheapest and selling in the dearest market, the result of their activities in the long run would be that each country would come to specialize in producing and exporting those commodities in which its comparative advantage, as measured in labor cost, was greatest." Ricardo's concept is an important basis for free trade arguments. Today economists measure other costs besides labor. Comparative advantage theory, as used today, simply explains why a country capable of providing a wide range of goods and services at a lower cost than any other country should concentrate on selling that product or service for which its cost advantage is greatest and leave the production of other goods and services, in which it has a positive but lesser cost advantage, to other countries. For a discussion of the principle of comparative advantage, see David Ricardo, Principles of Political Economy and Taxation, Everyman's Library, New York, 1917, Chapter 7; see also Gottfried Haberler, The Theory of International Trade, the Macmillan Company, New York, 1950; Murray C. Kemp, Pure Theory of International Trade, Prentice Hall, Inc., Englewood Cliffs, N.J., 1964. 4 For a detailed description of what was agreed to at the GATT discussions in Punta del Este, Uruguay, in September 1986, see the Ministerial Declaration on the Uruguay Round. 5 A more complete explanation of the "Trade and Tariff Act of 1984" is contained in the Conference Report, 98th Congress, 2nd Session, U.S. House of Representatives, October 5, 1984. An interesting summary of the impact of this act on tourism can be found in Travel Industry World Yearbook, Child and Waters, Inc. , New York, 1985. 6 Edgell, David, Sr. "International Tourism and Travel." In Howard F. Van Zandt, ed., International Business Prospects 1977-1999. Indianapolis: Bobbs-Merrill Educational Publish- ers, 1978, p. 168. Victor Fuchs, The Service Economy, National Bureau of Economic Research, New York, 1968, pp. 1-2. The Coalition of Services Industries, The Service Economy, November 1986, p.l. ; In this paper, the term "tourism" is used synonymously with all aspects of travel and tourism unless otherwise specified. With respect to international tourism, this text uses the definitions recommended by the World Tourism Organization as follows: 8 a. Visitor: persons visiting a country other than that which is their usual place of residence, for any reason other than following an occupation remunerated from within the country visited. This definition covers two classes of visitors: "tourist" and "excursionist;" b. Tourist: temporary visitors staying at least twenty-four hours in the country visited and the purpose of whose journey can be classified under one of the following headings: 1) leisure, recreation, holiday, health, study, religion and sport; 2) business, family, mission, meeting; c. Excursionist: temporary visitors staying less than twenty-four hours in the country visited (including travellers on cruises). United Stales Trade Performance in 1988, U.S. Department of Commerce, Washing- ton, D.C., September 1989. " For a clear understanding of the issues discussed and the details of the comprehensive research undertaken, the individual reports of the National Tourism Policy Study should be reviewed. I_ There have been several articles written discussing different aspects of the national tourism policy. Some which may be of particular interest include: a. "U.S. Government Policy on International Tourism," Tourism Management, March 1984, pp. 67-70. b. "Developing State Tourism Policies," Destinations (American Bus Association), Janu- ary, 1985, pp. 30-31. c. "Policy Council Coordinates Government Tourism Programs," Business America, January 7, 1985, p. 36. CHAPTER II International Tourism as a Commercial and Economic Activity There are yet some other petty things which seem to have reference to this balance of which the said officers of His Majesties Customs can take to notice, to bring them into accompt: as namely, the expense of travailers. Thomas Mun, England's Treasure by Foreign Trade, 1620 Were Thomas Mun alive today, he would not refer to tourism as "...some other petty things..." but would instead include the "... expense of travailers..." as one of the more important entries into the international balance of trade account. The post World War II years have seen a world- wide increase in leisure time for millions of people in both the developed and developing countries. Indeed, shorter working hours, greater individual pros- perity, faster and cheaper travel and the impact of advanced technology have all helped to make the leisure and travel industry the fastest growing industry in the world. Global tourism today is indeed, an activity of considerable economic importance. The significance of tourism as a source of income and employment, and as a major factor in the balance of payments for many countries, has been attracting increasing attention on the part of governments, regional and local authorities, and others with an interest in economic devel- opment. Tourism's reputation is as a large and rapidly growing industry still plagued by low wages and instability, as an increasingly important tool for rural and cultural economic development yet also a major potential source of environmental problems. 1 Recognition of the importance of tourism is expand- ing in policy and practice. This increased awareness has been slow in coming and, even today, for the most part, has not captured the attention of most economic policy decision-makers. 2 Global Importance Tourism is an important source of income for most of the countries of the world. In 1992, worldwide international tourism arrivals were approach- ing 476 million travellers, generating gross tourist receipts of $279 billion not including passenger fares. Expenditures on travel abroad represented about seven percent of world trade, placing tourism among the three largest items in international trade. As a measurement for global employment, tourism is estimated to generate jobs worldwide approaching 100 million service work- ers. 3 Tourism is indeed a major sector of the world economy. When it expands or contracts, nations, including their government and people, are 11 economically affected. International tourism receipts represent an infusion of hard currency from outside the receiving economy; it has the same positive impact as material trade export earnings. Tourism is of critical importance as an export product in both industri- alized and lesser developed countries. But the extent to which tourism contri- butes to a country's foreign exchange earnings varies considerably. In most of the Caribbean nations, trade in tourism is essential. In countries like the Dominican Republic, Jamaica, and the Bahamas tourism accounts for almost 70 percent of foreign exchange earnings. According to the World Tourism Organization, tourism already is a strong component of the economy in major developing countries such as Egypt, India, Indonesia, and Morocco. In Mexi- co it is consistently among the top three earners of foreign receipts. In every European country, and in Australia and Canada, tourism is of great signifi- cance. It is one of the largest exports in the United States, having surpassed agriculture as an export in 1988. The benefits of tourism vary greatly but partly depend on the comparative advantage of the country as well as its socio-economic and geo-political interests in exporting tourism. For the United States in 1992, international tourist arrivals were ap- proximately 45.4 million, with international tourism receipts of almost $73 billion (including passenger fares). Expectations for 1993 are that almost 48 million visitors will have come to the United States and spent about $79 billion. Expenditures for domestic and international travel services for the United States in 1991 were estimated at over $363 billion and are expected to be almost $383 billion by the end of 1993 based on information from the U.S. Travel Data Center and the United States Travel and Tourism Administra- tion. 4 Projections for 1994 estimate international arrivals to the United States to total almost 51 million producing over $87 billion in international travel receipts. Combined U.S. domestic and international travel receipts for 1994 are expected to be over $404 billion. Yet, as important as tourism is from an economic point of view, it is not fully recognized as an important international economic policy issue. This chapter will explore the importance of international tourism and rural tourism development within the United States as a commercial and economic activity. It will seek to demonstrate the need for greater public policy awareness of tourism as an integral force in the economic development of the world and of the United States. Services Export The tourism export industry is a growing component of the international services sector. Tradable business services represent a wealth of intangible products exported by U.S. firms such as construction and engineering services as well as communications and management consulting services. Similarly, the value of tourism as an export includes all the revenue accrued through food, lodging, transportation and entertainment the U.S. provides to international visitors during their stay in the United States. 12 U.S. trade in business services has long been a positive factor in the overall U.S. current account performance which is rapidly growing since recent major improvements in services data have been made. 3 Improvements in services data have been mandated by Congress and implemented by the Executive Branch. As a result, it became apparent in 1988 that business services had a surplus of $13 billion, accumulating to $45 billion in 1991 thereby highlighting the increasing importance of trade in service industries. As a service export, then, tourism continues to gain considerable recognition and is distinguished from tangible goods and products. Invisible Export The tourism sector is highly diverse — part public, part private, and composed of many industries and many firms. It is estimated that there are more than one million enterprises involved in travel-related businesses in the United States, of which 98 percent can be classified as small in size. These firms include small-scale travel agencies, family-owned motels, restaurants, amusement areas, souvenir, gift, and other retail establishments. It also includes large corporations that own hotel chains, airlines, steamship lines, bus lines, railroads, rental car agencies, theme parks and airport catering operations. These individual firms collectively produce a travel product that is often referred to by economists as an invisible export. Tourism is invisible in the sense that, as an export product, it is not produced, packaged, shipped or received like tangible goods. The consumer brings him or herself to the point of sale, pays for the product (services) and at some point in the future or almost immediately receives the services. Even though tourism may be sold abroad, it is consumed within the United States, thus generating additional opportunities for selling other goods and services. Another aspect of tourism which is contrary to the export of goods is the way it is marketed. For example, at an export trade show, most manufactured products will be available for display and to touch, whereas tourism is not sold by means of the product's presence. It is sold by an agent who represents the product verbally and through visual aids such as brochures, posters, slides, films or video-tapes. Travel and Passenger Transportation 6 U.S. trade in travel and passenger fares has typically been in deficit, especially in periods marked by a strong dollar and strong growth in the U.S. economy (see Table 2.1). In every year between 1960 and 1988, except 1981 in part because of the high value of the dollar, the United States experienced combined travel and passenger fare deficits. In 1988, the balance in travel and transportation improved, and the overall deficit declined to $1.3 billion from $5.9 billion in 1987. In 1989, travel and passenger fares saw the first surplus since 1981. This surplus of $5.4 billion was the highest surplus ever in the 13 account and has grown to almost $17 billion in 1991. In 1991, travel receipts (including passenger fares) from international travellers totalled over $64 billion. Expenditures by international travellers within the country reached $48.8 billion. Passenger fare receipts totaled $15.6 billion. Table 2.1 U.S. BUSINESS SERVICES TRADE, BY COMPONENT, 1960-1991 (Millions of dollars) Total Business Services Travel Passenger Fares Year Exports Imports Balance Exports Imports Balance Exports Imports Balance 1960 6,290 7,674 (1,384) 919 1,750 (831) 175 513 (338) 1970 14,171 14,520 (349) 2,331 3,980 (1,649) 554 1,215 (671) 1980 47,584 41,491 6,093 10,588 10,397 191 2,591 3,607 (1,016) 1985 73,026 72,859 167 17,920 24,558 (6,638) 4,382 6,484 (2,102) 1986 86,241 79,892 6,349 20,529 25,913 (5,384) 5,545 6,554 (1,009) 1987 98,434 90,243 8,191 23,718 29,310 (5,592) 6,966 7,318 (352) 1988 110,636 97,930 12,706 29,665 32,114 (2,449) 8,925 7,768 1,157 1989 127,080 101,314 25,766 36,571 33,418 3,153 10,525 8,258 2,267 1990 148,638 116,583 32,055 43,418 37,349 6,069 15,140 10,608 4,532 1991 163,637 118,341 45,296 48,757 36,958 11,799 15,627 10,636 4,991 NOTE: Deficit [( )]. SOURCE: Compiled by U.S. Travel and Tourism Administration from U.S. Depart- ment of Commerce, Bureau of Economic Analysis, Survey of Current Business, June 1992. Graph 2.1 A Total U.S. Business Service Trade Balance 200 Q) O c CO co CO o Q. E CO ■£ O Q. X LU 150 - 100- 50 -50 — Exports -- — "t Imports Balance ___^-^" i— -" — — i i i i i i I I I I I I I I CO o ■D CO c o 1960 1970 1980 1985 1986 1987 1988 1989 1990 1991 Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, June 1992 14 Graph 2.1 B U.S. Travel Trade Balance 1960 1970 1980 1985 1987 1988 1989 O c (0 CO w ■e o Q. E co" ■c o Q. X LU Graph 2.1 C U.S. Passenger Fare Trade Balance CO o CO c o 1960 1970 1980 1985 1986 1987 1988 1989 1990 1991 Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, June 1992 15 The high value of the dollar in the early 1980s played a key role in enlarging this deficit. The strengthening dollar through early 1985 improved the price advantage of tourism services in many foreign countries, especially the major developed nations, but the decline in the dollar exchange rate in recent years did not result in major improvements. By 1988 the declining dollar served to accelerate the number of states, cities, and tourism businesses investing in the international market along with the rapid expansion of international routes to the United States by U.S. and foreign flag carriers helped change this chronic deficit into a record surplus. For the first time in recent history the United States in 1988 recorded a surplus in passenger transportation services (See Table 2.1). The SI. 2 billion surplus reversed the $0.4 billion deficit of 1987 and the record $2.4 billion deficit of 1983. The deficit in U.S. passenger transportation exports, primarily fares paid by foreign residents to U.S. airlines, expanded very slowly during 1981-85 ($1.4 billion in 1981 to $2.1 billion in 1985). In three short years the $2.1 billion transportation deficit changed to a $1.2 billion surplus in 1988. By 1991, that surplus had grown to $5 billion. Record 1988 receipts from passenger transportation exports of $8.9 billion were more than double the 1985 total, and by 1991 that figure had grown to $15.6 billion. Passenger transportation imports, primarily fares paid by U.S. residents to foreign airlines, stagnated noticeably between 1983 and 1986 after many years of consistent gains. These imports increased almost 12 percent in 1987 and then increased only 6 percent in 1988 to $7.8 billion. The travel fares payments maintained the 6% growth rate in 1989 and then rose dramatically in 1990 by 29% reaching the record $10.6 billion level. In 1991, passenger fares remained stable at $10.6 billion a result of the recession and Gulf War Crisis. As this information suggests, two factors strongly affected the balance in this passenger transportation surplus account: the number of U.S. travelers versus international visitors and whether they selected U.S. or non-U. S. carriers. The 1988 surplus appears to have reflected a substantial increase in the number of foreign residents using U.S. air carriers and increases in average fares. The expansion of U.S. carriers into the international market along with the replacement of weaker carriers by very aggressive carriers in recent years also helped increase the travel fare surplus. Combined with such trends as American tourism related investment overseas and the devaluation of currency, these factors strongly contributed to the current surplus in travel and passenger fares. Comparative Advantage The United States is often perceived as having a comparative advantage in internationally traded private business services. The economic theory of comparative advantage, in its basic interpretation, simply states that countries will specialize in producing and exporting those goods and services in which they have a competitive advantage in terms of land, labor, capital, technology 16 or other productive factors. 7 For example, a country which has petroleum, iron ore, agriculture soil, fishing waters or similar resources would concentrate on the development, production, investment and management of these re- sources to produce and export in these areas. The same is true for tourism. Good beaches, beautiful mountains, historic monuments and man-made attrac- tions as potential tourism products are as important to a country as revenue earning exports are to the production and trade of more tangible products such as oil and steel. In some respects, tourism is a superior export product because much of the productive capacity is less exhaustible and if implemented properly, may cause less disruption and pollution of the environment. The recent rise in popularity of "ecotourism," or nature tourism, has placed an even greater premium on the preservation of wildlands, rainforests, river basins, and other natural settings. Governments and private industry realize the long-term potential tourism has not only for generating revenue but also as a promoter of international peace and goodwill. Consequently, many countries are busy capitalizing on the comparative advantage they may have in the nature tourism arena. The comparative advantage for tourism can often aid develop- ing nations in earning foreign exchange more rapidly and with less difficulty than would be true for other products. It is interesting to note that interna- tional tourism was proportionately more important for developing countries than for industrialized countries, accounting for about one-third of their services trade. Tourism was the largest of four major service categories for the non-oil-exporting developing countries as a group. On the whole, indus- trialized countries had a deficit in the travel account, whereas developing countries had a surplus. There is probably no country in the world that has a greater compara- tive advantage in tourism than the United States. It has an abundance of natural resources as well as cultural diversity with tremendous tourism potential. It has great cities and thousands of interesting small towns and villages. Man-made attractions abound and there is a never-ending number of events, ethnic festivals and local celebrations of interest to visitors. Participatory activities are endless. There is swimming, scuba diving, sailing, surfing, boating, skiing (water and snow), camping, cave exploring, hiking, hunting, bird watching, tennis, golf, and on and on. In brief, the opportunities for participation in all aspects of tourism are the greatest in the world. Employment One of the reasons tourism is so important economically is that it is labor intensive. Since tourism employment is concentrated mainly in the services sector rather than the goods-producing sector, the tourism industry tends to be less automated; thus, much labor is used with relatively little capital. In the United States tourism is one of the three largest employers in 17 more than thirty states, generating about 6 million jobs and estimated payrolls totalling over $91 billion in 1991. Travel services directly generates more jobs than any other industry except health services. The future of the U.S. economy will depend on many new jobs to absorb new workers into an expanded labor force. The U.S. Department of Labor has predicted that, in the next decade, nine of every 10 new jobs created will be in the service industries. Tourism offers a promising source for those new jobs. The U.S. Department of Labor also predicts that by the end of this century, 80 percent of new entrants into the work force will come from growing minorities, women and immigrants. Travel and tourism will play a key role in providing employment opportunities for these groups which often encounter the greatest difficulty in finding work. Tourism is a particularly good potential source of jobs because it is both labor intensive and likely to grow in the future. This means that for each additional dollar expended on the growing tourism sector, more jobs will be created than in most other areas of the economy. Tourism, while demanding large numbers of highly skilled workers, well-trained and educated managers, has the further advantage to employ workers with less developed skills. Also, tourism often provides a first job to college students who may later move into other fields as well as those who stay in the industry. These are the two segments of the work force which have the highest unemployment rates and which are the most resistant to broad fiscal and monetary policy aimed at lower unemployment. 8 By way of illustration, the travel industry provides a disproportionately high number of jobs for the traditionally disadvantaged, i.e., Afro- Americans, Hispanics, Asians and women of all color. A recent survey indicated that this industry provided 970,000 jobs for Afro-Americans, (11.2 percent of total travel industry employment, compared to 10.1 percent nationally); 765,000 jobs for Hispanic-Americans (8.8 percent versus 6.9 percent nationwide); and nearly 4.6 million jobs for all women (52.9 percent versus 44.8 percent of total U.S. employment). Thus, policy efforts concentrated on stimulating the growth of the tourist sector are more likely to create jobs for lower skilled members of the labor force than the theoretically similar measures of tax reduction, government expenditures or increasing the rate of growth of the money supply. Income While creating jobs, tourism is an important generator of national income as well. International visitors make large expenditures in the United States on a wide variety of goods and services. In 1991, over $64 billion was generated yielding a substantial increase in income in the United States. International travellers from abroad are interested in general sightseeing, good dining, cultural activities and shopping for high quality goods which, in turn, represents a significant source of foreign exchange receipts. 18 In its broadest sense, tourism encompasses all expenditures for goods and services by travellers. It includes purchase of travellers cheques, transportation, lodging, attractions, meals, beverages, entertainment, souvenirs, car rentals, travel agency and sightseeing tour services. The full scope of international travel and tourism, therefore, covers the output of segments of many indus- tries. Tourist activities make use of the services of other industries, such as insurance, banking services, credit cards, auto clubs, park fees and taxi services. One advantage of the foreign visitor over the domestic tourist is that international visitors spend almost five times as much on tourism services pouring fresh rather than recycled dollars into the economy. The overall impact of tourism on the U.S. economy, however, is even greater than the actual expenditures for goods and services because of the economic phenom- enon known as the multiplier effect. Multiplier Effect An important point to bear in mind is that a nation's well-being is usually measured in terms of national income, the sum total of the flow of income as is generated from hand to hand. Economists have long realized that an increase in public or private investment in an economy increases national income by an amount greater than itself. Economists use the term "multiplied amount" because, as it changes hands, the initial investment is respent and generates new rounds of spending. MIT economist Paul Samuelson has pointed out that export earnings have the same multiplier effects on national income as an increase in domestic investment. International tourism receipts represent an infusion of fresh mon- ey from outside the economy and have the same impact on the economy as export earnings. What economists also tell us, however, is that the multiplier is a double-edged sword. A sudden drop in investment, export earnings or tourism receipts reduces national income by a multiplied amount. A decline of SI million in a nation's tourism earnings is, therefore, going to result in a decline of more than SI million in that nation's national income. This decline will not only affect sales, profits and employment in the tourism industry but also will affect the revenues of feeder industries which supply the tourism industry as well: agriculture, fishing, food processing and packing, floriculture, brewing and distilling, transportation, handicrafts and many others. An example of the multiplier effect is as follows: Monsieur A stays at the hotel of Mr. B one night and pays him S50. Mr. B uses part of the S50 to pay Mr. C, a hotel worker. Mr. C uses part of his wages to pay Mr. D the butcher, who then buys bread from Mr. E the baker, and the money originally spent by Monsieur A keeps moving through the U.S. economy until it generates a good deal more income than the S50 he spent on the hotel room. There are varying estimates of the magnitude of the tourism multiplier, and it will vary from country to country as well was within a country. But it 19 is likely to be between 2.0 and 4.0, meaning that a dollar expended on tourism in the U.S. will increase U.S. Gross National Product between $2 and $4. 9 Economic Development Tourism plays an important role in the economic and technological development of nations. It serves (a) to stimulate the development of basic infrastructure such as airports, highways, harbors, roads, sewers and electrical power; (b) contributes to the growth of domestic industries which supply the tourism industry, e.g., transportation, agriculture, food-processing, commercial fishing, lumbering, construction; (c) attracts foreign investment, especially in the building of hotels, and (d) facilitates the transfer of technology and information. 10 The transfer of technology has been particularly evident in the hotel industry, for example, as properties in developing countries have ac- quired computer-based reservations systems and contracted with North Ameri- can and Western European hotel corporations for management and manpower development services. In addition to computerized personalized client-profile records, foodordering systems and automated check-in and check-out facilities, business travelers of the very near future may expect to find in-room fax machines, multi-language voice mail, computer modems, voice-activated com- puters and video telephones at their fingertips. Many countries place strong emphasis on the demand and supply of tourism services as part of their overall economic development. On the demand side, it becomes necessary to first research the potential interests and motiva- tions of tourists. Then location and identification of the markets, pricing techniques and marketing and promotion become the main elements of de- mand analysis. The supply of tourism services is less well understood. Basic to the tourism product are several supply factors. Natural re- sources such as scenic land, good climatic conditions, flora, fauna, water, beaches and friendly people are essential to tourism development. Availability of water supply systems, sewage disposal plants, transportation, facilities, and related kinds of infrastructure are fundamental to meeting the needs of tourists. Also needed are hotels, restaurants, shopping centers, taxis, planes, buses; an almost endless list of supply components which tourists have come to expect as integral to a tourism experience. Less easily defined are some of the hospitality services such as friendliness of the host community, availability of the arts, entertainment and other attributes and activities which enhance the tourist product. The basic need is for careful planning not only to ensure that the demand and supply components are available, but to have a strategy for quality development of the tourist product. If tourists like a tourism product, the receiving country can reap the benefits. But unless tourism development is an integral part of a country's overall economic development plan, and there is a balanced approach to the development of tourist infrastructure and services, the economic benefits may be short-lived. Involving the local commu- 20 nity in the planning process is critical. Despite what may be fantastic natural resources, travellers who do not receive the service they expect at a destination will not return. This is far more important in the international market where culture, language, and values may be different from our own. Tourism Impact on Local Economy Almost every local community worldwide has some resource, attraction, activity, event or special interest or adventure opportunity that will motivate a traveller. It may be a special fishing hole, a unique place for photographing or painting, a backpacking or horseback trail, a good location for ballooning, or Whitewater rafting, some unusual festival or sporting events such as golf and tennis. The point is that there is hardly a place in rural or urban America that cannot accommodate the tourist. Even if the community itself is not a well-known destination, it still may be affected by tourism. It may be on a favorite route for travellers buying gasoline, goods, lodging, souvenirs, and services to visitors. It may not yet be an important travel destination, but it might have the potential for developing into a tourist product. Local benefits from tourism are usually in such categories as employ- ment, income, diversification of economic base, tax revenues, visibility and cultural benefits. Of particular importance to communities both large and small, is the fact that small businesses dominate the tourist/travel industry. For example, of the 1.4 million travel-related business firms in the United States, 98 percent of them are classified as small businesses. 11 Whatever the case, tourism provides an opportunity for a local community to become involved in the economic opportunities of this multifaceted industry. Rural Tourism in the United States The problems of rural areas are well documented. The decline of family-owned farms, the failure of various industries and the loss of mineral resources have created population loss, especially among better educated youth and skilled workers. Residents of rural communities lag behind in education. Across the country, the economic competitiveness of rural areas is declining, in part because rural communities are dependent upon too few sources of income. Much of rural America is, and historically has been, poor. Yet, the Federal Government has provided record levels of price and income support to farmers over the last decade. The "farm crisis" has now spread beyond the farm into businesses which traditionally have catered to the farmer. Economic planners say that new industries must be developed to replace those that are dying and are no longer competitive, that underdeveloped rural resources must be utilized and that rural Americans must be taught new skills. They also point out that non-metropolitan counties that depended on tourism, retirement income and specialized government-spending exhibited much greater stability during the 1981-82 recession than those that were 21 dependent on rural manufacturing, farming, coal mining or oil-drilling. Al- though agriculture remains the most important industry in rural America, it now employs relatively few people. Of America's 2,400 rural counties only approximately 400 are considered agriculturally dependent. Rural commu- nities seeking alternatives to economic development other than the once domi- nant industries of farming, ranching, and mining. Many areas are looking towards more sustainable resources as a development tool. Tourism is a highly viable option because its implementation relies on an area's cultural, historic, ethnic, geographic and natural uniqueness. Such changes are increasingly being viewed as opportunities for keeping rural communities economically viable. Defining rural America as all areas having less than 50,000 inhabitants, rural America includes about 25 percent of the U.S. population and 90 percent of its natural resources. Rural environments have vast expanses of land and water, and wide diversity in their mountains, plains, forests, grass- lands, and deserts that not only provide outstanding settings for leisure and recreation but are the basic commodities for a basic tourism product. In addition to acting as a stimulus to rural economies, tourism has the capability to preserve the environment in which it operates. The concept of tourism as an economic development tool for rural areas was studied extensively in 1989. As part of the 1988 budget process, Congress directed the U.S. Department of Commerce's tourism agency, the U.S. Travel and Tourism Administration, to undertake a two-part national study to determine: • the ways in which small business in rural areas can be promoted through travel and tourism, and • whether there is a need for federal policy concerning the development and promotion of small businesses in rural communities through travel and tourism, and whether or not there should be a federal program to support such a policy. To carry out this mandate, USTTA, through a contractor (Economics Research Associates), prepared The National Policy Study on Rural Tourism and Small Businesses in September, 1989. 12 A companion part of this study was a special Report of the Federal Task Force on Rural Tourism to the Tourism Policy Council (September 25, 1989). The National Policy Study was a catalyst for future planning and policy issues to come regarding rural tourism development. On January 22, 1990, the President ordered the implementation of the Report on Rural Economic Development for the 90s. This report reveals that any revitalization for rural America will be found in off-farm employment opportunities, especially in industries such as tourism, retirement living and commercial recreation. Giving additional support and recognition to the rural tourism develop- ment effort the President stated on October 28, 1991: 22 More and more rural communities are making tourism a part of the economic development option for the nineties. And the U.S. Travel and Tourism Administration along with other government agencies, is work- ing to put small town America on the tourist map. As part of that initiative, federal agencies will provide leadership for educational out- reach programs in rural tourism development. The President's official acknowledgement of rural tourism as a potential source of revenue, moving towards greater economic stability in small town America, has led to dynamic policy and leadership involvement by the federal, state, county and private sectors. A Rural Tourism Development Foundation was established under the Tourism Policy Export Promotion Act of 1992. This is currently comprised of nine members and will expand to a final total of 15 representing the tourism industry and state and local agencies. The Foundation, which is independent of the Federal Government, will play an important role in planning for the increased economic activity throughout rural America. Central to this initiative is USTTA's development of an educational outreach program that provides training for rural communities interested in tourism as an economic development tool. With this mission in mind the USTTA designed a "Train the Trainers" program that was implemented at the first National Rural Tourism Development Conference. The basic objec- tive of this annually planned Conference is to establish a cadre of professionals in every state capable of providing technical help, information, or other assistance to rural communities interested in tourism development. Critical to this objective is the need for developing a networking relationship between local, county and federal participants, along with the private sector, as rural tourism becomes an increasingly more important part of total tourism development. In April, 1992, the first National Rural Tourism Conference was held in Kansas City, Missouri, in April, 1992. Roughly 200 people attended the conference representing 43 states and Canada. Taking an active part in this workshop forum, each participant was able to see how these opportunities could be tailored to suit the needs of his or her home state or community. Since the majority of states were represented, the participants of the Con- ference are now being utilized as a nationwide human resource network that is committed to rural tourism as a means of local economic development. To continue providing both educational and networking opportunities, a Second Annual Conference on Rural Tourism will be held in Rapid City, South Dakota, April 26-28, 1993, in conjunction with the National Associ- ation of State Development Agencies (NASDA) Third Annual National Conference on Tourism Development (April 28-30). The purpose of the conference is to continue development and training of a nationwide team of individuals able to work with local community leadership to make their areas 23 attractive to tourism. The program seeks to define and establish municipal tourism policies that will assist state or political subdivisions in making tourism an economic development priority. 13 Small towns across America are beginning to realize that the develop- ment potential tourism offers is attainable through the marketing of their communities both domestically and internationally. Visitors from across the globe have expressed an interest in seeing the heart of America, the frontier, often on tourism routes or theme itineraries linking historical, cultural, and natural attractions. This is having an economic multiplier effect on a diversity of travel industry sectors — bus companies bringing international travelers to rural sections of the United States, the enhancement of Scenic Byways travel programming, and the conscientious integration of recreation and its by- products, such as recreational vehicular travel, with sustainable tourism devel- opment in rural areas. Distribution considerations include how tourism revenues interact with other economic opportunities within the community and within the family unit. The income that is generated by rural tourism, however modest, can be utilized to revitalize the community and encourage further economic investment. Endnotes ' Healy, Robert G., "The Role of Tourism in Sustainable Development," Durham, NC: U.S. Agency for International Development and Duke University Center for Tropical Con- servation, February 1992, pp. 32-33. An excellent compilation and analysis of the facts and figures regarding world travel is contained in Travel Industry World Yearbook — The Big Picture by Somerset R. Waters, Child and Waters Inc., New York, 1992. A more detailed discussion of the formation of tourism policy as an aid in the overall planning and management of tourism can be found in Chapter 3: "The Formulation of Tourism Policy — A Managerial Framework" (Edgell, 1987), in Travel, Tourism, and Hospitality Research, edited by J.R. Brent Ritchie and Charles R. Goeldener, NY: John Wiley and Sons, 1987. Also see "Role of Tourism in the International Economic Policy of the United States" presented by David L. Edgell and Stephen A. Wandner at the Western Economic Association Annual Meeting in Honolulu on June 22, 1978. ^ Estimates based mainly on information from the World Tourism Organization as well as on other sources. 4 U.S. Industrial Outlook 1993. "Travel Service," U.S. Department of Commerce, January 1990. 3 A special Benchmark Survey on trade in services during 1986 was conducted by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. Results of this survey were published in the October 1988 Survey of Current Business. The survey was conducted to the amended provisions of the International Investment and Trade in Services Survey Act. The BEA now uses the data contained in the Inflight Survey produced by the U.S. Travel and Tourism Administration, U.S. Department of Commerce. 1 Useful sources on the subject of services exports: Services Exports — A Critical Force in International Trade, Travel and Tourism Government Affairs Council, 1985. See also "U.S. Business Services Trade" in United States Trade Performance, U.S. Department of Commerce, September, 1989. See David Ricardo regarding the idea of comparative advantage in Principles of Political Economy and Taxation, Everyman's Library, New York, 1917. 24 i United States Travel and Tourism Administration, The Critical Role of Tourism in the Economy of the Caribbean Basin, "Multiplier Effect on National Income," Washington, D.C.: U.S. Department of Commerce, 1993, p. 29. Howard F. Van Zandt, Ed. International Business Prospects 1977-1999, Chapter Seven "International Tourism and Travel" (David L. Edgell), Bobbs-Merrill Educational Publishers, Indianapolis, 1978, p. 168. 10 See Hamid Mowlana and Ginger Smith, "Tourism in a Global Context: The Case of Frequent Traveler Programs," Journal of Travel Research, Winter, 1993, pp. 20-27 '. " Tourism USA (Guidelines for Tourism Development). Prepared by the University of Missouri for the U.S. Department of Commerce, Washington, D.C., (revised and expanded 1986), pp. 1-2. This Study is comprehensive and includes six Appendices. It gives a very clear and comprehensive analysis of rural tourism. The Study was prepared for the United States Travel and Tourism Administration by Economics Research Associates in association with The University of Missouri and the United States Travel Data Center, Washington, D.C., Septem- ber 1989. A partial indication of the implication of this Study for U.S. tourism policy is included in: David L. Edgell, Sr., and Mary Lynn Cartwright, "How One Kansas Town Used Tourism to Revitalize Its Economic Base," Business America, November 5, 1990, and in David L. Edgell, Sr., and Lee Staiger, "A Small Community Adopts Tourism as a Development Tool," Business America, April 20, 1992. In order to meet a number of needs of ethnic groups across the United States, USTTA is in the process of having a training package developed for ethnic tourism development which will be used to train and educate individuals in rural and ethnic communities. Following development of this comprehensive educational material, USTTA will host a national multicultural tourism development conference in late 1993, with workshops geared toward the specific needs of Native-Americans, Asian-Americans, African-Americans, and Hispanic-Ameri- cans. 25 CHAPTER III Political and Foreign Policy Implications of International Tourism Tourism is a simple continuation of politics by other means. Jean-Maurice Thurot, Economia, May 1975. The political aspects of tourism are interwoven with its economic con- sequences. Tourism is not only a "...continuation of politics..." but an integral part of the world's political economy. Therefore, tourism is, or can be, a tool used not only for economic, but for political means. 1 For obvious economic reasons, most countries seek to generate a large volume of inbound tourism. Expenditures by international visitors, as explained in Chapter II, add to national income and employment, and are a valuable source of foreign exchange earnings. Various measures are taken by governments to encourage travelers from abroad to visit their respective destinations. Most developed and developing countries conduct their national tourism promotion under the aegis of a government tourism policy covering promotion and marketing, infrastructure and training. Often this is in conjunction with associations of private sector tourism interests, joint public-private consultative bodies, and international and intergovernmental organizations. For many developing countries, such as Mexico or India, tourism policy, planning, and promotion consume a large proportion of federal funds and are conducted at the ministerial level. Prob- lems can occur due to lack of coordination between tourism policy and decisionmaking and recognition of the actual impact on the tourism industry. The lack of coordination between tourism and environmental policy highlights this separation. 2 Today most national governments and many provincial governments maintain travel promotion offices around the world to provide information to prospective visitors by mail or telephone, and through extensive advertising campaigns. Most of these tourism offices are located in the principal travel- generating countries of Western Europe, the United States, Canada, Mexico and Japan. Visas are issued freely for temporary visitors and other entry requirements are held to a minimum to avoid discouraging potential tourists. The United States is somewhat more restrictive than Western Europe, Canada, Mexico and Japan in its entry procedures; however, the United States has expanded the use of visa waivers to over 20 countries since 1991. Most governments in travel-receiving countries seek to stimulate the construc- tion of essential tourist facilities, such as hotels, highways and access roads, communications, and visitor attractions. Significant efforts are also devoted to conserving areas of natural beauty: lakes, forests, rivers, and mountains, and maintaining resort areas and cultural opportunities. Special events, entertain- 27 ment, and cultural activities are often supported by local and regional govern- ments. Other services performed by governments are necessary to support tourism, such as police protection and crime control, and maintaining good health and sanitary conditions. Tourism Facilitation A number of political, economic, and security factors influence gov- ernmental actions and regulations affecting tourism. Barriers on outbound tourism are sometimes imposed for political or security reasons. It is not unusual for governments to prohibit travel of their citizens to war zones or to territories of hostile nations where the government has no means of protecting the life and property of its citizens. The U.S. State Department, for instance, through its Citizens' Emergency Center, issues travel advisories to inform Americans considering travel abroad about adverse conditions they might find in specific countries. 3 Special precautions may also be taken when outbreaks of contagious diseases occur in foreign countries and when these measures may result in discouraging or inconveniencing tourists. Burdensome customs practices may be instituted for passenger safety, and to prevent smuggling. Another concern of governments is immigration control. Nearly all countries regulate the entrance of immigrants and enforce laws against illegal entrants. This continues to be a problem when social pressures are created by the need to care for jobless immigrants, refugees from civil or international hostilities, or simply the opposition of the local labor force when jobs are scarce. However, while taking into consideration concerns regarding security, drug trafficking and terrorism, in 1988 the United States implemented a program to waive the non-immigrant visitor visa requirements for residents of foreign countries. The program currently includes 21 countries. 4 According to a survey conducted in several of these countries, a significant percentage of travelers indicated that the visa waiver was a major factor in their decision to travel to the United States. Admitting international visitors and facilitating their travel within a nation's borders is a political action; therefore, a country's approach to international tourism is part of its foreign policy, as well as a part of its economic and commercial policy. 5 There are endless examples of the political and foreign policy implica- tions of international tourism. The history of travel contains numerous references to international tourism with political overtones, ranging from Marco Polo's vivid descriptions of the political events in the Orient to the uncertainty, lack of knowledge and myths associated with the "dark continent" of Africa prior to its exploration by the Europeans. The next few paragraphs are examples which illustrate the broad policy implications of international tourism in today's world. Increased contacts between persons of different cultures can lead to increased knowledge and understanding which, in turn, can contribute to a relaxation of tensions between nations. For example, the Shanghai Commu- 28 nique, signed in 1972 by the United States and the People's Republic of China, noted, in part: "The effort to reduce tensions is served by improving communications between countries that have different ideologies, so as to lessen the risks of confrontation through accident, miscalculation or misunder- standing." 6 There are numerous additional examples, but none more dramatic than what occurred in 1989 in Eastern Europe. Few individuals could have predicted the fall of the "Iron Curtain" in 1989 with the symbolic dismantling of the Berlin Wall. The once secretive Soviet Union of the Cold War will surely evolve into a very diverse and exciting region that is warm in hospital- ity, rich in culture and natural attractions. Improvements in the telecommuni- cations and transportation systems across the region, often referred to as the New Independent States (NIS), will make the mountains of Georgia, the ancient towns of the Ukraine and the unfamiliar faces of Kazakhstan better known and more accessible to interested international visitors the world over. Such changes will have profound effects upon East- West travel through the 1990s. The likely result will be a deeper understanding among people in the world, increased commerce and increased avenues for international cooper- ation. It will take some time before we know just what the political implica- tions of such human contact will eventually hold in store for us. Even in Cuba, where tourism was once denigrated by its people as a "bourgeois" habit, international tourism is returning vigorously as an economic factor of major importance. In Cuba's effort to earn hard currency, it is now aggressively encouraging foreign visitors. By 1989, Cuba saw 314,000 interna- tional visitor arrivals, mostly from Canada and Western Europe, which generated US$204 million in tourism receipts. Tourism and Foreign Policy The prospective economic benefits of tourism frequently influence the internal policies of governments. 7 In some corners of our globe, inbound tourism is used to showcase the accomplishments of the government or party in power and to increase understanding abroad of the government's policies. Sometimes this approach is successful; sometimes, it backfires. The point is that tourism expands the horizon of the tourist and presents the host govern- ment or community with a unique opportunity to influence visitors from abroad. Many countries, including the United States, sponsor numerous exchanges, cultural programs, lecture series and other events to make people of the world aware of country customs and standards of living. At the same time, a country must be made safe for tourism. Civil strife and disorders, such as those which wrecked Yugoslavia, and wasted large areas of South Africa, Northern Ireland and Lebanon, have seriously impeded tourism potential for many years to come. In 1991, the U.S. engagement in the Gulf War prompted a comment on the floor of the Japanese Diet that it would be a breach of honor for Japanese tourists to be vacationing in the 29 United States while it was at war. Within days, cancellations of pre-packaged Japanese tours decimated occupancy levels and tourism-related revenues for the State of Hawaii. 8 According to author Jean-Maurice Thurot, host countries develop an economic dependence on tourist-generating countries. This dependence can influence the foreign policy of the host country toward the generating country. This is especially true in nations needing foreign exchange, or hard currency, for economic development. Nations in the process of economic development need to buy key items, especially capital equipment and technology, from the industrial nations in order to speed their own growth. International tourism can be an engine of economic growth by providing an important source of foreign exchange. Most less-developed nations need tourist dollars for eco- nomic growth. Where governments suffer a deficit in their general trade balance, they soon recognize the significance of inbound tourism. In 1991, the United States enjoyed a $16.8 billion favorable balance (surplus) in the tourism sector of the economy, making a major contribution to reducing the national trade deficit. International Terrorism A discussion of political and foreign policy implications of international tourism would not be complete in today's world without the dark cloud of international terrorism and its impact on tourism. Terrorism is not new; it is an age-old economic and political weapon. Modern history books are full of accounts of terrorism, hostage taking and kidnapping. The infamous period of piracy on the high seas in the 18th and 19th centuries with its plunder and violence was a time of terrorism and pillage which wreaked havoc on the maritime industry. Today, media coverage and global attention to politically motivated terrorist activities can have severe and instant effects on international travel. Often, anti-terrorist actions such as the U.S. attack on Libya or the use of military personnel to attempt rescues of airplane hijack victims can have larger repercussions that may jeopardize the safety of Americans travelling abroad. The nature of such events is often enough to cause many travellers to reconsider their vacation plans. The response of governments and the private sector to the impact of terrorism in tourism is still significant. The U.S. Federal Aviation Admin- istration and its counterparts abroad continue to increase their inspection of airports worldwide, and airport authorities have increased security systems within the airports. Similarly, during times of international crisis, such as the Gulf War, airport security is significantly upgraded with extra precautions designed to ensure the safety of both domestic and international travellers. It will take a strong concerted effort and global cooperation for the terrorism of the eighties to be avoided in the future. 30 International Tourism Policy for the United States The International Travel Act of 1961, as amended, 9 22 U.S.C. §§ 2121 et seq., established a national tourism policy to encourage travel to the United States, reduced barriers to travel, and generally facilitated international travel. Section 2123 instructs the Secretary of Commerce, inter alia, to develop and plan a comprehensive program to stimulate and encourage travel to the United States, to consult with foreign governments on travel and tourism matters, to establish branches of official tourism offices in foreign countries, and to assist in training and education on travel and tourism matters. The Under Secretary for Travel and Tourism, who heads the U.S. Travel and Tourism Administration (USTTA) carries out those functions. USTTA has fostered international tourism policies designed to assist travel and tourism companies and travelers through its activities in interna- tional organizations and negotiations on tourism issues with other countries. These activities and negotiations are aimed at reducing barriers to travel and companies (including airlines) which provide tourism services as well as working together with other governments to facilitate bilateral tourism. USTTA also has programs to promote the United States abroad as a destination, to train and educate U.S. companies in how to market their services in the international market, and to determine the number of travelers who visit the United States as well as to project future trends and markets. In observing the National Tourism Policy Act of 1981, as amended, the United States has put more emphasis on broader policy goals which often affect foreign policy related goals. For example, under Title I of this Act, two of the twelve national tourism policy goals are to "...contribute to personal growth, health, education, and intercultural appreciation of the geography, history, and ethnicity of the United States", and "...encourage the free and welcome entry of individuals travelling to the United States, in order to enhance international understanding and goodwill..." Furthermore, Title II of the Act states that USTTA "...should consult with foreign governments on travel and tourism matters and, in accordance with applicable law, represent United States travel and tourism interests before international and intergov- ernmental meetings..." This latter provision of the Act gives USTTA the authority to meet, negotiate and discuss a broad range of international tourism issues either bilaterally or multilaterally. 10 Under the new 1992 authorization statute, USTTA will formally and systematically identify and analyze the impact of barriers to U.S. tourism interests and will provide funds to states and other entities to promote their regions abroad in major markets. Finally, USTTA chairs an interagency council which coordinates federal policies and programs which affect tourism so that the federal government can meet the goals of the national tourism policy. 31 International Aviation As international tourism is a critical economic factor in most host counties, all strive eagerly to participate in the cornucopia of international tourism earnings. Of particular importance are the earnings from civil avi- ation, which is the largest single component of the travel and tourism mega-industry. 11 The air transport industry throughout the world is in a period of profound change. 12 It is being transformed by pressures which will ensure that it is a totally different kind of business by the end of this decade than it was even 15 years ago. An industry which historically has been nationalistic and highly regulated is becoming a transnational and less economically regulated business. Predicting how the industry will be structured and will work by the end of this millennium is particularly difficult to do in early 1993 because of the myriad of philosophies, interests, and economic and financial pressures cur- rently felt. Given the influences at this point, however, it is likely that the industry will be dominated by a small number of very large airlines with global networks and communication systems. Depending on the outcome of policy decisions within the next couple of years, these mega-airlines could be free from many economic regulations, protections, and restraints that airlines have worked under since the early days of the industry. The one notable regulatory regime which is likely to remain in some form is competition rules, including merger controls. The central device for achieving a balance of benefits between countries has been granting market access based on reciprocity. Through bilateral agreements, countries limited "routes" to one or more "pairs" of cities in their respective territories, seating capacities, and frequency of flights. The United States has become a major advocate for liberalizing many of these constraints. Following deregulation of the U.S. airline industry, 13 interest emerged in the U.S. for liberalizing the international system. Airlines in other parts of the world have learned from the U.S. deregulation experience; some are now considering supporting governmental policies which will allow them to benefit from deregulation and the often- resulting economies of scope. In the European Community (EC), there is speculation that deregulation and liberalization could lead to a concentration of airlines in much the same way as in the United States. If policy decisions in the next few years liberalize rules on the limitation of foreign ownership in airlines, transborder mergers could radically change the structure of the world airline industry. The major barrier to the creation of truly transnational airlines is the entrenched proposition that air carriers should be substantially owned and effectively controlled by nationals of the nation in which they are registered. This pillar of aviation nationalism is now beginning to be questioned. Investment in airlines by foreign nationals is 32 already accepted in many countries, albeit with limitations, and there are now as many as 25 airlines in various countries that have significant foreign shareholdings. Trends in international aviation agreements and negotiations are evi- dence of the changes and tensions in the airline industry. In 1992, for example, France denounced its bilateral agreement with the United States in order to re-negotiate routes, capacity limitations, and other obstacles which they perceive as threatening their competitive standing. France has not favored the U.S. offer of "open skies." The European Community's efforts to integrate the aviation regimes of its Member States have raised questions of whether there will be bilateral or regional agreements negotiated in the future and has called into question the almost sacrosanct concept of cabotage in which only the airlines of a country can provide air transportation between points in that country. As early as the fall of 1990, the United States and Canada began consultations about "open skies." This concept is perhaps the ultimate de- regulation of civil air regimes. In late 1992, the United States and the Netherlands signed an agreement that opened their international markets to each other's airlines. 14 This agreement provided the right to operate between any point in either country without restriction, including service to any beyond points (so-called "Fifth Freedom Rights"), and the right to transfer passengers to an unlimited number of aircraft at the international gateways. The U.S. -Dutch agreement, as the first truly "open skies" agreement for the United States, joins a liberal agreement with Mexico, that while not "open skies" per se, provides the benefits of "open skies" in many respects. Diminished government ownership of airlines, or privatization, could reduce the number of incentives for protectionism and the air transport industry may be carried along by the tide of events pushing for the adoption of freer trade rules for products and other services throughout the world. The single European market, the North American Free Trade Agreement, the Mercosur Agreement, and the Australian-New Zealand Free Trade Agree- ment are all powerful indications of these pressures. Moreover, the Uruguay Round of negotiations on trade in services, despite the difficulties which it has encountered, is based on an agreed objective of achieving progressively higher levels of trade liberalization. In sum, if the current trends toward liberalization, privatization, foreign ownership, and transnational mergers continue, the structure and regulation of the international airline industry will be substantially transformed. Depending on world economic conditions and resultant political decisions, there may be more interest in allowing the development of a multinational industry. If that occurs, bilateral agreements will increasingly be seen to restrict such develop- ment and the case for a liberal multilateral agreement may well hold more appeal. 33 International Agreements and Understandings 15 The direction of international tourism is changing as the world changes, in all aspects of international affairs. The demise of the former Soviet Union and the opening of Eastern Europe has ended the era of the Cold War; tourism will prosper with its relatively low level of barriers to trade, and its enormous utility as an instrument for economic development. Tourism will also ride high on the crest of democratization, enjoying a tremendous potential for long-haul, two-way tourism — East and West. International cooperation between tourism-receiving nations is an area of great future promise in international economies. Tourism Agreements The United States has eight bilateral tourism agreements. 16 Their con- tents vary according to the needs of the two countries, but they share common goals. In the past, these agreements were negotiated and concluded in order to achieve an increase in two-way tourism trade; support the activities and efforts of national tourism offices; provide for the sharing of research, statisti- cal data, and other information; and facilitate the movement of travelers between the countries involved. These agreements also often encourage tour- ism investment, promote the security and safety of tourists, and work toward cooperation to achieve mutual goals in international organizations. Several of these agreements also call for consultations to solve problems or to find explore ways for increasing tourism. Several agreements acknowledge the benefits of education and training in tourism. All strive to enhance mutual understanding and good will among nations. Decisions to negotiate and conclude new agreements are made on a case-by-case basis, but are primarily based on whether a legally-binding agreement is needed to accomplish these goals or whether they can be accomplished by an memorandum of under- standing or normal diplomatic and trade relations. Trade and Investment Agreements Tourism has become imbedded in trade and investment agreements designed and negotiated for broad trade and investment reasons. These agree- ments might be on a bilateral or multilateral basis. They often establish rules for international trade and investment in products and services, many of which provide direct benefits for U.S. tourism interests. Under these agree- ments, U.S. companies are generally guaranteed national treatment for estab- lishing themselves in the other country and for advertising and selling in the other market; they also provide in many cases for the ability to repatriate profits, for protection from expropriation without payment, and for the ability to conduct business in the other country when in compliance with appropriate laws. A variation of trade agreements providing market access are our bilateral aviation agreements which provide route, capacity, and frequency rights. 34 Recent examples of trade and investment agreements which provide benefits and protection to U.S. travel and tourism interests include the U.S. -Canada Free Trade Agreement, which has a specific annex on tourism; the U.S. -Netherlands civil aviation agreement; and the U.S. -Russian Trade Agreement. Assuming the North American Free Trade Agreement is approved and adopted by the United States, Mexico, and Canada, it, too, will be a trade agreement which provides benefits to U.S. tourism interests. The much- awaited General Agreement on Trade in Services (GATS) under negotiation in the Uruguay Round is an example of a multilateral trade agreement that is expected to directly benefit international tourism. General Agreement on Trade in Services (GATS) There has been a world trend towards large free trade areas such as the European Economic Community, and the North American Free Trade Agree- ment (NAFTA). These understandings are emerging and replacing the global importance of many individual nations. As these economic spheres are emerg- ing, competitive participants in the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) struggle to continue talks to push for lower barriers to trade worldwide. The areas of discussion under the GATT Uruguay Round affecting travel and tourism fall primarily under what is known as the General Agreement on Trade in Services (GATS). 17 This is one area of GATT that has made significant progress. The current Uruguay Round of negotiations is the first to recognize officially the need for developing international trade rules with regard to trade in services. Consequently, the General Agreement on Trade in Services (GATS), which covers tourism and tourism-related services, is being negoti- ated in order to develop binding rules for trade in services. The GATS negotiations are "parallel" to the GATT talks, which means that although they are affiliated, the final agreement that is produced (if any) will be largely separate from a GATT agreement covering trade in products. Cur- rently, the Uruguay Round of talks, despite the preparation of a draft text of an agreement, is stalled due to persistent political differences. Like the GATT and other trade negotiations, the goal of the GATS has been to liberalize international trade policies. The theory behind this goal is that free (or freer) trade through the reduction or elimination of monetary (license fees), non-monetary (quotas), or other barriers to trade is mutually beneficial to all the countries involved. The elimination of barriers allows true price and quality competition to prevail, reduces transactions costs, and concentrates different countries' resources in the products where they have a comparative advantage. Specifically, the articles of the GATS explore such issues as market access (whether a product or service can enter a foreign market), national treatment (treating foreign business on par with similar domestic entities), and transparency (timely and accessible publication of rules, procedures and guide- lines governing conducting business in a foreign country). Another major area of concern is the application of these trade liberalization rules to all eventual 35 signatories including the developing areas of the world. The current draft text of the agreement includes provisions for actively increasing the participation of developing countries in global trade in services. This is especially important since many developing regions are quickly becoming significant tourism des- tinations and markets for international visitors. Improvements in telecommunications, transportation, and labor mobility are rapidly shrinking the globe. An agreement that creates understanding and cooperation on the international transaction of these businesses and others such as hotels, restaurants, and tour operators will have a great impact on facilitating and fostering international travel in the future. In essence, when higher quality travel-related services can be delivered without an increase in cost to the consumer, more people are likely to take advantage of opportunities to visit international destinations. Helsinki Accord One of the best-known international understandings containing tourism provisions is the 1975 Helsinki Accord, which was the Final Act of the Conference on Security and Cooperation in Europe (CSCE). The most familiar section, the Human Rights section, of this accord deals with the rights of people to migrate freely, but in the tourism sections the thirty-five nations — including the United States — acknowledged that more opportunities for tourism are essential to the development of cooperation among nations. With specific reference to tourism, the signatories to the Accord, among other points: (a) expressed their intentions to "encourage increased tourism on both an individual and group basis," (b) recognized the desirability of carrying out "detailed studies on tourism," (c) agreed to "endeavor, where possible, to ensure that the development of tourism does not injure the artistic, historic and cultural heritage in their respective countries," (d) stated their intention "to facilitate wider travel by their citizens for personal or professional rea- sons," (e) agreed to "endeavor gradually to lower, where necessary, the fees for visas and official travel documents," (f) agreed to "increase, on the basis of appropriate agreements or arrangements, cooperation in the development of tourism, in particular, by considering bilaterally, possible ways to increase information relating to travel to other related questions of mutual interest," and (g) expressed their intention "to promote visits to their respective coun- t. _• _ »18 tries. But the hopes of this Conference and the potential of tourism as an agent of political rapprochement will be realized only through the efforts of governments, national tourist offices, and private industry. Certainly the changes taking place in the European Community, Eastern Europe and the NIS are leading the nations of the Helsinki Accord toward the fulfillment of these goals. 36 Accord of Mutual Understanding and Cooperation in Sports In recent years, tourism, as a foreign policy tool, was exercised heavily by the U.S. Government. In 1980, after the Soviet invasion of Afghanistan, Americans were discouraged from attending the Moscow Olympic Games. There was more than a 75 percent drop in American travel to the Soviet Union during that Olympic Year. Tour operators abandoned travel to the Soviet Union and Eastern European markets through 1981. A somewhat similar situation occurred in 1984 when the East Bloc countries, (with the exception of Romania), spurred on by the Soviets, boycotted the Olympic Games in Los Angeles. To avoid such future happenings, the United States entered into an international agreement of "Accord of Mutual Understanding and Cooperation in Sports" which has been a step toward future cooperation in the Olympic Games. Further liberalization of rules for the 1992 Olympiad took into account the political, economic and even geographic changes that have taken place since the 1988 Olympics. The splintered area that was once the Soviet Union was allowed to compete as the Unified Team, and competi- tors were allowed to choose the Republic they represented. Intergovernmental and International Organizations There are a number of intergovernmental and international organizations of which the United States is a member and which are involved with international policy relating to problems and issues in tourism. Principal among these are the Organization of American States (OAS), Organization for Economic Cooperation and Development (OECD), the Asia Pacific Economic Cooperation (APEC), the World Tourism Organization (WTO), and the Pacific Asia Travel Association (PATA). Following is a very brief description of the involvement of these organizations with international tourism. Organization of American States (OAS) The OAS, headquartered in Washington, D.C., is currently composed of the 34 countries. 19 The general purposes of the OAS include seeking solutions to political, juridical, and economic problems among the members and to promote their economic, social, and cultural development. In fulfilling these purposes, the OAS held its first Inter-American Travel Congress in San Francisco in 1939. Much of the significant work of the OAS in tourism is accomplished through its Tourism Development Program formed in 1970. The main functions of this Congress are to assist member tourism authorities in developing and promoting their respective tourism sectors; support member states' efforts to create appropriate conditions for increasing the flow of tourism to the region; provide broad policy advice on tourism issues and coordinate with international bodies on tourism matters. Projects focus on topics such as financing mechanisms, facilitation, statistics and education and training. 37 The OAS, over the years, has viewed tourism as having broad policy implications beyond the narrow economic benefits so important to most of the member countries. At a "special" meeting of the Inter-American Travel Congress in Rio de Janeiro, Brazil, on August 25, 1972, the OAS formulated the Declaration of Rio De Janeiro, an important document which relates tourism to some of the broader issues. This document was reinforced through the Declaration of Caracas at the XIII Inter-American Travel Congress, Caracas, Venezuela, September 24, 1977. In May of 1992 at the 22nd General Assembly, the OAS formally recognized tourism as a priority issue, in a resolution strengthening technical cooperation in several areas. 20 It is likely this focus will continue to the end of the millennium and will include cooperative work on tourism planning, nature tourism, training in tourism, public-private sector partnerships, cruise tourism, and small enterprises. Organization for Economic Cooperation and Development (OECD) The OECD, headquartered in Paris, is a forum for consultations and discussions by the governments of 24 European and other industrialized countries for the purpose of coordinating policies and further developing their economies in a broad range of economic areas. Through various committees and working groups, the OECD conducts studies and negotiations to solve trade and related problems and to coordinate their policies for continued economic growth. The OECD Tourism Committee reviews and consults on specific tourism problems among member countries and publishes statistics and policy changes in a yearly publication entitled Tourism Policy and International Tourism in OECD Member Countries. A milestone was achieved in November, 1985, when the OECD Council adopted a new instrument on international tourism policy which set forth principles aimed towards facilitation of tourism for the 24 member countries. It is a major attempt at reducing constraints on tourism and setting in motion a process of liberalization. More recently, the Tourism Committee of the OECD held their 63rd Meeting in Paris, France, November 17-18, 1992. Among the key issues discussed that are expected to be on the Committee's agenda through this decade were rural development and tourism, standardization of statistical work, and relations with non-member countries. The area of rural tourism is one area of potential growth for member countries, and thus, the possibilities are being further explored. The OECD will begin by examining specific case studies on rural tourism and development to look at its potential for growth, benefits, and drawbacks. A second priority for the OECD is to improve statistical information collected and distributed in the tourism industry. In order to provide more standard statistics, and to avoid overlap between various organizations, the OECD, WTO and Eurostat are working together. One joint project is a questionnaire which will be thorough, but at the same time will reduce the number of reports that each nation must complete. Cooperation and coordina- 38 tion among these organizations is crucial to the development of the tourism industry, and is being recognized as such. A third area of importance for the OECD into the next millennium is relations with non-member countries, particularly Eastern European and Baltic countries as well as Russia. With the end of the Cold War and improved East- West relations, these nations are developing tourism industries, and there is a mutual effort to improve rela- tions between these nations and OECD member states. Asia-Pacific Economic Cooperation (APEC) Another organization which focuses on tourism and which recently achieved official status as an international governmental organization is the Asia-Pacific Economic Cooperation Group (APEC) representing 15 countries: Australia, Brunei, Canada, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, People's Republic of China, Philippines, Singapore, Taiwan, Thailand, and the United States. The purpose of APEC is to establish coordination of national economies for the benefit of countries in the Asian Pacific region as a whole. The specific goals are to sustain the growth and development of capital and technology in keeping with the principles of the GATT and to develop and strengthen the open multilateral trading system in the interest of Asia-Pacific and all other economies. APEC has ten working groups including Tourism, Telecommunications, and Transportation. Other groups include Human Re- source Development, Marine Resources, Energy, Trade Promotion, Trade and Investment Data, Investment and Technology Transfer, and Fisheries. APEC now has a permanent Secretariat located in Singapore. The Secretariat is to serve as a coordinating body and a central repository for all APEC docu- ments; the majority of the work, however, is to be carried out by the Working Groups. The U.S. Travel and Tourism Administration is the first country chair of the Tourism Working Group for APEC. It is working to coordinate activities with the telecommunications and transportation groups. Cooperation with member countries in the areas of tourism, telecommunications, and transportation will bolster U.S. efforts to compete effectively in the Asian- Pacific and world markets. It also will help to coordinate goals and efforts towards reducing barriers and to increase reciprocal travel between the Pa- cific-Asian region and North America. As the multilateral process of negotiations for tourism, telecommunica- tions, and transportation services falters with the stalemate of the GATT Uruguay Round, the importance of inter-regional tourism and trade agree- ments and organizations such as APEC becomes apparent. As tourism be- comes more and more embedded into the international political and economic framework, intergovernmental organizations and individual governments will continue actively to address policy issues affecting tourism. 39 World Tourism Organization (WTO) The only worldwide government organization dedicated to tourism is the WTO, headquartered in Madrid with 113 member countries. The organiza- tion was formally established on January 2, 1975. It provides a world clearinghouse for the collection, analysis and dissemination of technical tour- ism information. It offers national tourism administrations and organizations the machinery for a multinational approach to international discussions and negotiations on tourism matters. In addition to the government members, WTO has more than 170 affiliate members, which are private sector companies. Many of these entities are interested in international dialogue and the implementation of worldwide conferences, seminars and other means for focusing on important tourism development issues and policies. This agency has a Facilitation Committee which provides technical advice and service to its member countries, suggesting or proposing such measures as simplifying entry and exit formalities, or for reporting on other existing governmental practices which may impede the development of international travel. It also can develop a set of standards and recommend procedures for a draft convention to facilitate health and financial exchange control measures. While considerable progress has been made in utilizing tourism as an international policy tool for furthering economic development and improved communication, cooperation, mutual understanding and goodwill, there is much that remains to be accomplished. Barriers to international tourism continue to exist. While it may be overly-optimistic to expect that the WTO's motto, "Tourism: Passport to Peace," will be shared by everyone, it is a step in the right direction. What we do know is that when peace prevails, tourism flourishes. 21 Pacific Asia Travel Association (PATA) For many years, especially during periods of social and economic crisis, the tourism industry has formed associations, commissions or other similar bodies to exert collective influence on tourism policy and marketing. In addition to the World Tourism Organization (WTO) and the Organization for Economic Cooperation and Development (OECD), several other organiza- tions are centralizing and focusing on highly competitive regional groupings, to build a higher level of cooperation and coalition-building for the develop- ment of limited, geographic tourism areas. A significant example of this is the Pacific Asia Travel Association, known as PATA. In 1992, PATA celebrated it 40th year of tourism promo- tion for the Pacific Basin. This nonprofit corporation is comprised of over 2,200 worldwide travel industry organizations, including 77 government, state, and city tourism bodies, 59 airlines and several steamship lines serving the Pacific Rim as well as nearly 600 hotels, and about 500 travel agency groups. Over 15,000 individual volunteers are members of 76 PATA chapter or- ganizations worldwide. 40 PATA'S hallmark has been innovation and conservation. PATA, in fact, was an early leader in recognizing the need for an environmental ethic among those involved in the tourism industry. PATA has initiated the "PATA Code for Environmental Tourism." In this code, environmentally responsible tour- ism means tourism which recognizes the necessity of ensuring a sustainable future; it meets the needs of the tourism industry today, and does not compromise the ability of this and future generations to conserve the environ- ment. PATA's model for an environmental ethic for the travel and tourism industry foreshadows the power of industry coalitions in directing future tourism trends and their relationships with international economic affairs. Endnotes 1 See Hamid Mowlana and Ginger Smith, "Tourism as International Relations: Link- ages Between Telecommunications Technologies and Transnational Banking," in J.R. Brent Ritchie and Donald E. Hawkins, eds., World Travel and Tourism Review: Indicators, Trends and Forecasts, vol. 1, no. 1, Wallingford, Oxon, UK: C.A.B. International, 1991, pp. 216-218. 2 Healy, Robert G., "The Role of Tourism in Sustainable Development," Durham, N.C.: U.S. Agency for International Development and Duke University Center for Tropical Con- servation, February, 1992, p. 23. 3 On October 7, 1992, the State Department's Bureau of Consular Affairs announced a revision of its Travel Advisory program. The three categories of Travel Advisories, Warnings, Cautions and Notices, has been replaced simply by Travel Warnings and Consular Information Sheets. Under the new system, Travel Warnings are only issued when the State Department recommends that Americans avoid travel to a certain country. The State Department has Consular Information Sheets for all countries. These Consular Information Sheets include general information, such as the location of the U.S. embassy or consulate, unusual immigra- tion practices, health conditions, minor political disturbances, crime and security information and other pertinent information for a traveler. 4 The U.S. visa waiver program currently is in effect in Andorra, Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Japan, Liechtenstein, Luxembourg, Monaco, New Zealand, Norway, San Marino, Spain, Sweden, Switzerland, The Netherlands, and United Kingdom. Van Zandt, Howard F., Ed., International Business Prospects 1977-1999, Bobbs- Merrill Educational Publishers, Indianapolis, 1978, pp. 171-177. Shanghai Communique (February 27, 1972); a joint statement issued at the conclusion of President Richard M. Nixon's visit to China. See Hamid Mowlana and Ginger Smith, "Trends In Telecommunications and the Tourism Industry: Coalitions, Regionalism, and International Welfare Systems," in Frank Go, J.R. Brent Ritchie, Donald Hawkins, and Douglas Frechtling, eds., World Travel and Tourism Review: Indicators, Trends, and Forecasts, vol. 2, no. 1, Wallingford, UK: C.A.B. Interna- tional, 1992, pp. 163-167. ! See also Hamid Mowlana and Ginger Smith, "International Tourism and Political Instability: The 'Collateral Damage' of the Persian Gulf War," International Communication Program, School of International Service, The American University, Washington, D.C., March, 1992. The majority of statutory authority under which the U.S. Travel and Tourism Administration operates and administers the national tourism policy is found in the Interna- tional Travel Act of 1961 (Pub.L. 87-63, 75 Stat. 129), the National Tourism Policy Act of 1981 (Pub.L. 97-63, 95 Stat. 1011), and the Tourism Policy and Export Promotion Act of 1992 (Pub.L. 102-372). The 1961 and 1981 acts are codified at 22 U.S.C. §§ 212 ei seq.; the 1992 act was adopted on September 30, 1992, and amends the 1961 and 1981 statutes. 41 10 Business America, May 28, 1984, p. 2. " For and in-depth discussion on tourism and air transport, see "Tourism and Air Transport Background Paper," World Tourism Organization and Aviation Workshop, Madrid, April 27, 1992. Sections of this report are summarized here. Handszuh, Henryk. "Trade in tourism services under the Uruguay Round." Tourism Management, September, 1992, p. 2. 13 Deregulation in the United States, coupled with other economic conditions, have meant that weak U.S. airlines were unable to compete and failed or collapsed into opportune mergers or took refuge under Chapter 1 1 or the U.S. Bankruptcy Code. At the same time, the strong U.S. carriers have expanded aggressively into European and Asian markets and, as carriers of U.S. origin, offered increasingly more direct service from the huge number of U.S. points of origin, to the dismay of many major carriers from abroad. The most important lesson from the U.S. deregulation experience is that there are enormous marketing advantages in being a very large airline, which stem from improved marketing strength. This has come to be called "economies of scope" and include hub operations, control of distribution, price leadership, and "loyalty" campaigns. Very large airlines, such as American, United, and Delta, have demonstrated that these economies of scope are vitally important in the airline business. The outcome has been that the U.S. airline industry has become increasingly concentrated to the extent that five airlines now carry 95 percent of total domestic traffic. 14 In announcing this agreement, Department of Transportation Secretary Andrew Card made it clear that this agreement contained all the elements of the U.S. definition of open skies, including open entry, unrestricted capacity and frequency on all routes, flexibility in setting fares and liberal charter and cargo arrangements. 1 As a general guideline to the various types of international agreements and understandings, it is useful to note each country has its own jurisprudence relating to treaties and other legally binding international agreements and non-binding agreements. At the risk of over generalizing, the United States has treaties, Executive Agreements, and Executive-Congres- sional Agreements which provide binding international rights and obligations. These generally cover a broad range of issues on a specific topic such as trade or defense. An example of a treaty would be arms control treaties, while U.S. bilateral tourism agreements generally are Executive Agreements and the U.S. Canadian Free Trade Agreement is an Executive-Congres- sional Agreement. Whether a memorandum of understanding (MOU) between countries can be legally binding or non-binding depends on its wording and intent. MOUs generally cover more narrow, often more technical issues than treaties or executive agreements. Accords and understandings also occasionally are used, but whether they are internation- ally, legally binding or not depends again on their wording and intent. Even if such documents are not legally binding, the moral or political situation behind them could be substantial. Their concepts might even become part of customary international law after a considerable time because the community of nations follows and depends on the principles contained in them. Other types of documents between nations that might affect tourism interests include joint communiques and announcements. Generally, these are not legally binding. Their pur- poses are usually to mark an event of importance to the participants or to note the achievement of an understanding on a particular topic, but which does not legally bind a country. These agreements are with Argentina, Venezuela, Mexico, Poland, Hungary, Mo- rocco, Egypt, and the Philippines. 1 Handszuh, Henryk. "Trade in tourism services under the Uruguay Round." Tourism Management. September, 1992, p. 263. 18 The Conference on Security and Cooperation in Europe, Final Act (commonly referred to as the "Helsinki Accord") was signed on August 1, 1975, in Helsinki, Finland. Thirty-five nations have signed. Current OAS member countries include: Antigua and Barbuda, Argentina, the Bahamas, Barbados, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, 42 Mexico, Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Surinam, Trinidad and Tobago, the United States, Uruguay, and Venezuela. " "The Development of Tourism in Latin America and the Caribbean." OAS Executive Secretariat For Economic and Social Affairs. Report of the Secretariat, July, 1992. For an interesting explanation of recent moves by OAS countries towards the privatization of their tourism resources, see David L. Edgell, Sr., Ph.D., and Wanda Barquin in "Tourism and Air Transportation" in Privatization and Foreign Investment in Latin America, Institute of the Americas, 1993 forthcoming. 21 Journal of Travel Research, XXII, Number 3, Winter 1984, pp. 15-16. 43 CHAPTER IV Sociocultural and Environmental Aspects of International Tourism A guest never forgets the host who had treated him kindly. Homer, The Odyssey, 9th Century B.C. A primary motivation for travel is the opportunity to experience cultures found in other countries. Travel is essentially experiential; we travel to understand other ways of living, to see other natural settings, and to do things we otherwise would not do in our workaday lives. These needs profoundly affect how we view the world, making us more broad-minded and worldly as a whole, and more cognizant of both the lands we visit and the people who inhabit them. Sociocultural and environmental aspects of international tourism relate to the way people communicate with each other or simply their interactions with the environment. When a visitor has a positive cultural experience in pleasant surroundings he won't forget "...the host who had treated him kindly." The social and cultural impact of tourism is demonstrated in the ways in which tourism contributes to changes in value systems, individual behavior, community lifestyles and relationships, of tourists themselves and of the communities they visit. The social effects of tourism on host communities as well as tourism's interaction with cultural and environmental infrastructure and activities are important to acknowledge. These effects often overlap and are difficult to distinguish, much less to quantify or measure. The process of change can be subtle and only weakly indicative of the cumulative effect of a growing tourism component on the nature of local communities — the in- cremental intangible cost aptly described as "the tyranny of small decisions." By the time the magnitude of change is apparent, it may be too late to stop or modify the sociocultural and environmental impact of tourism. People and places can provide powerful attractions for travel. Visitors are interested in languages, impressions, manners, apparel, and environments that differ from their own. Cultural areas of interest include art, music, dancing, painting, sculpture, architecture as well as special events, celebrations and festivals. Additional attractions include food, drink, games, entertainment or other special forms of hospitality. The environment might be based on significant cultural or historical orientation, or it might be composed of a natural landscape such as a pleasant seashore, a magnificent mountain, a serene forest or it might simply be the hospitality or other social customs of human beings. The concern herein is to recognize that such experiences may be congenial or in some circumstances quite unpleasant, and to recognize the need for policy guidance to ensure that the future growth of tourism will allow for positive tourism experiences. 45 The current rapid growth and development of tourism puts special pressures on sociocultural and environmental planning. All too frequently there are complaints that tourism generates pollution, crowding, crime, pros- titution, and the corruption of the language, culture and customs of some local populations. This chapter will explore some of the positive and negative aspects of socio-cultural and environmental issues in tourism. Sociocultural Problems In the perspective of interracial visibilities, all culturally diverse groups in the American melting pot are important. The pride of ancestry in every race within our borders, and in their historic and cultural achievements, should be explored, respected and dignified. The French in New Orleans, the Swedes in Minnesota, the Greeks, the Russians, the Filipinos and the Por- tuguese — all of these must be understood and recognized as building blocks of our American completeness. E Pluribus Unum spells out this historic creed on every coin, in every purse and pocket of our people. This unique complexity as a multicolored, polyglot society may explain why we are the most active nation of world travelers, journeying within our own country, in our ancestral homeland, and readily venturing to every other land. For this reason, in our industry, we must begin to see and to feel the need for expressing our separate distinctions in order to strengthen our solidarity. The concept of cultural diversity in tourism is essentially new. The time will come when a multiplicity of cultural needs and contributions will be recognized and validated as tourism objectives far beyond the lure of exotic restaurants and native dancers. Meanwhile, we must go forward on a para- mount need for addressing ourselves to the four largest minorities in our population. Each of these major cultural groups: African-American, Hispanic- American, Asian-American, and Native-American, offers a rich heritage and culture that can provide both U.S. citizens and international visitors with authentic and stimulating experiences during their travels in the U.S.A. The challenge to each of these communalities is to develop a tourism program that fits within their historic values while continuing to appeal to their tourism and travel assets, and to their neighbors. It is clear that tourism has, in a short time-frame, led to a closer association and mingling of people of different races, creeds, religions and cultures; however, there is a growing concern that mass international tourism may have a detrimental impact on local cultures and customs or that a local area will distort its festivals and ceremonies to "stage" spectacles for the benefit of international visitors. This attitude illustrates the concept of au- thenticity; the trade-off between "living" culture practiced as a way of life and "manufactured" culture practiced for economic rewards. There is no apparent line of distinction between these two, and people will disagree on the extent to which the "true" culture is being seriously impaired. 46 The effects of social pathology entail many accounts of the role of tourism in adding social costs to a community through dangerous sports and associated activities, including gambling, prostitution, crimes of violence, rob- bery, and vandalism. Some of these are responses to direct tourist demands, but others are more complex and may begin through friction between host communities and tourists. The resulting indicators of stress are manifested in increased tension in lifestyles and added costs of law enforcement and property protection. Further indicators are economic in nature, such as increases in the cost of living — loss of public amenities and sense of place, higher rents, rates and costs of services, particularly where residents are required to pay tourist prices for commodities and access to local facilities. Pollution and overcrowding is a obvious sociocultural indicator in which the development of infrastructure, and the influx of tourists that follow, place insurmountable pressures on waste disposal systems, or where trash is discarded carelessly or noise or simply the tourist mass becomes unacceptable to the local residents. Thus, to some people tourism leads to the disappearance of traditional human environments or monuments, replacing them with towers of concrete, ideas, ethics, morals — in effect, threatening the whole fabric of tradition and nature. 1 In addition, there is concern that as such distortions arise, the host and guest become parts of separate worlds leading to even greater prejudices and misunderstandings. For example, in the book The Golden Hordes, Turner and Ash contend that modern day tourism is a form of cultural imperialism, an unending pursuit of fun, sun, and sex by the golden hordes of pleasure- seekers who are damaging local cultures and polluting the ecosystem in their quest. These authors feel that "tourism" damages the local culture of the host country, perverts traditional social values, encourages prostitution and hustling among "the natives." They purport that the results take the form of a proliferation of fabricated tourist-oriented cultural performances and the sale of cheap souvenirs masquerading as local "arts and crafts". 2 In other articles it is frequently mentioned that the attitude of the local population toward tourists is sometimes hostile due to the tourist's outlandish requirements for accommodations and services or due to the unreasonable wants and demands of a limited number of rude and arrogant visitors. Other problems cited include the fact that in many of the developing countries there is foreign ownership and management of tourist facilities which may create the feeling that local residents perform only menial tasks. Tourism may be regarded as a threat to the indigenous culture and mores. There is often a perception that tourists are mainly responsible for the deterioration in stan- dards of local arts and crafts as efforts are made to expand output to meet the tourist's demands. And, not infrequently, resort development has resulted in local people being denied access to their own beaches. All these factors can give rise to serious problems in the perception of tourists, sometimes leading to demands for limitations on the flow of visitors. 47 Health and Tourism The relationship between health and tourism is a complex issue that affects both host and visitor in a variety of ways. The health of both the local people and the sanitary condition of their environment can certainly affect tourist flows. Just as critical, however, is the impact of the health of the tourists themselves on the physical well-being of the population in the destina- tion countries as well as their environmental habitat. It is also important to recognize the significance of health and tourism as a reciprocal indicator of development. The subject of health and tourism is an issue under consideration by the Pan American Health Organization (PAHO) in the first four years of the current decade (1991-1994). Preliminary findings of a survey carried out recently by the PAHO indicate that poor coordination between the health and tourism sectors make it difficult to apply equable health standards in the tourism industry. The data also points to a general lack of information given to tourists on health conditions and requirements in destination countries. In regards to tourists' impact on a host population, it is important that the health sector collaborate with the tourist industry and media on the generation and dissemination of health information to tourists. The majority of tourists seek no health advise before they travel or may obtain it from non-medical and unreliable sources. Tourism affects the health of the recipient population by introducing foreign communicable diseases into the host area. It is becoming more widely recognized that health is seen not only as an indicator of human development but also as source to spur economic growth and thereby development. And if, as is the case in many countries, tourism sustains economic performance, then it has the potential to vastly improve the physical and environmental health of the population. Avoiding Sociocultural Problems While certainly there are numerous incidents where tourism does have a negative impact on an area, this need not happen. A carefully planned, well-organized tourist destination can benefit the residents through exposure to a variety of people, ideas, people, languages and other cultural values. Tourism can enrich the resident's sense of neighborhood pride by stimulating an interest in the area's background through restoration and preservation of historical sites. For example, some of the cultural richness in the African- American communities is being revived as potential for tourism development. 3 In New York City, the revitalization of Harlem has made that community a well-known tourist destination abroad. The myths, realities, folklore, and legacies of Harlem are now known around the world. It is increasingly being recognized both domestically and internationally for its cultural significance, landmarks, museums, churches, parks, and colorful night life. 4 48 Organized cultural tourism development can provide opportunities for local people to learn more about themselves, thus increasing feelings of pride in their heritage and a heightened perception of their own self-worth. For example, residents of Mexico City speak with great pride about their Ballet Folklorico, their National Museum of Anthropology and their Palace of Fine Arts. The Venezuelans speak longingly and affectionately about "La Feria de San Sebastian," a great festive event with cultural and other exciting celebra- tions which not only draws Venezuelan participation but also includes inter- national interest. In the United States even a highly localized heritage event such as "Cody Days," is a festive occasion for the residents of Leavenworth, Kansas. Celebrating a historical link to William F. Cody (better known as "Buffalo Bill") this celebration also serves as a positive cultural experience for visiting tourists. The local celebration of "Potomac Days Parade" in Potomac, Maryland, is an event that has grown into an international festival; here people of many different backgrounds ranging from Korea to Lithuania show off traditional clothes, food, and arts and crafts. These local celebrations started gradually but have grown into regular yearly celebrations to which both residents and visitors look forward. Tourism can also contribute to cultural revival. There are numerous examples where the demand by tourists for local arts and crafts has heightened the interest and maintained the skills of local artisans and crafts- men by providing an audience and a commercial market for their art. In the United States, a number of Indian ceremonies and dances owe much of their continued existence to the fact that tourists are interested in them. This has stimulated many local Indian tribes to revive and teach the new generations the meaning of such traditions. On the Waianae Coast of Oahu in the Hawaiian Islands, traditional native Hawaiian culture is being revived by the Waianae Coast Community Development Corporation (WCCDC). What be- gan as a lawsuit by the WCCDC against a major nearby resort developer ended as a cooperative and mutually beneficial relationship to foster native Hawaiian arts and crafts, dance and music. 5 The preservation of native cultures, whether expressed in local artifacts, historic sites or religious rites, strengthens the historic ties of a multiplex society. It is often this very diversity which is the primary tourism attraction. It is a contribution to the quality of life of the native residents as well as the tourists. But, it is often the tourists who provide the interest and the economic means to preserve and maintain this cultural heritage. The Manila Declaration (from the World Tourism Conference held in Manila in 1980) summarizes tourism's contribution to sociocultural and environmental benefits in these words: The protection, enhancement and improvement of various components of man's environment are among the fundamental conditions for the harmo- nious development of tourism. Similarly, rational management of tourism may contribute to a large extent to protecting and developing the 49 physical environment and the cultural heritage as well as improving the quality of life... tourism brings people closer together and creates an awareness of the diversity of ways of life, traditions and aspirations... 6 In other words, the sociocultural and environmental attributes of an area can enrich tourism in general, and provide different and unique opportunities for tourists to experience art, music, dance, food, literature, language, religion and history different from their own. At the same time, tourists bring to the local area sociocultural traits from their homeland. This cross-cultural mani- festation can have positive or negative results depending on the way tourism is handled in the receiving country. Numerous studies and reports from the Organization of American States outline potential approaches for better un- derstanding the cultural and environmental aspects of tourism. The World Tourism Organization has taken a strong interest in cultural and environmen- tal concerns for tourism. The WTO General Assembly, which met in Sofia, Bulgaria (September, 1985), adopted a "Tourism Bill of Rights and Tourist Code" which contains several articles outlining these concerns. Two brief excerpts suffice to illustrate the importance of this issue: ...1. Article VI. They (host communities) are also entitled to expect from tourists understanding and respect for their customs, religions and other elements of their cultures which are part of the human heritage. 2. Article VII. The population constituting the host communities in place of transit and sojourn are invited to receive tourists with the greatest possible hospitality, courtesy and respect necessary for the development of harmonious human and social relations... 7 In planning for international visitors, the host country must understand the great sociocultural variety in the backgrounds of the visitors as well as their reasons for their visits. Many people want the excitement of experienc- ing new and different areas of the world, but at the same time they may be apprehensive about strange languages, customs and social structures. Salah Wahab in his book Tourism Management, has one prescription for this paradox. He states: The tourist country should be sufficiently different to be exciting and diversified, offering the tourist the novelty and escape he seeks, but sufficiently similar in comfort and security conditions to the tourist's own country to make him feel relaxed and at ease. 8 Certainly one of the challenges for planning a balanced tourism product is being able to take into account sociocultural wants and needs of the visitor balanced with positive attributes for the host. 50 A New Means of Economic Development Once reserved for the oases of Las Vegas, Reno, and other smaller Nevada gambling towns, casino gambling has recently come to be a develop- ment tool in several rural areas and various Indian Reservations throughout the United States. South Dakota, Colorado and Iowa have all, in limited ways, legalized casino-style gambling with the hope of revitalizing historic communities and depressed areas. Researchers at the University of Colorado are conducting a comprehensive study, sponsored by the Aspen Institute, of the impacts and implications of gambling on the three Colorado towns and Deadwood, South Dakota, where gambling is now legal. The study is slated for completion in mid- 1993. Preliminary findings from this research indicate that gambling has direct impact on almost every aspect of life for the residents of the communities and that proper planning on the state and local levels is a key ingredient to managing these inevitable changes. 9 On September 23, 1992, The Wall Street Journal featured an article entitled "Casino Gambling Saves Three Colorado Towns. ..But the Price is High." 10 Author Marj Charlier discusses both the positive and negative impacts of gambling development on a community. On the bright side, revenue from tourism and gambling generates a large tax pool for both state and local governments. Gambling towns are flooded with cash from the volume of tourism resulting from this activity, and player fees. Using revenue from gambling the small town of Cripple Creek "poured $5.5 million into infrastructure improvements." 11 Along with reaping benefits from casino devel- opment, there are certain negative effects on local communities. The charm of small towns is destroyed and ...full-blown casinos owned by Las Vegas veterans and real estate devel- opers have swept in, swallowing many mom-and-pop businesses along the way. Water, sewer and traffic systems have been overwhelmed, crime has increased and the relative calm of local politics has been shattered. 12 Although new jobs are generated from the casinos, local businesses are often forced out due to excessive property tax increases for being located in a prime gambling district. Thus, it is clear that the experiences of current gambling communities must be closely examined when developing new areas. On November 3, 1992, Colorado residents voted conclusively against legalizing gambling in a number of towns across the state in favor of carefully studying the impact on the towns where it is currently legal. In the future, careful planning must be involved in the process of developing small towns into gambling centers in order to ensure a smooth transition that can be sustained by the local residents. 51 Some Cases of Heritage Tourism Some communities undertake the restoration of old buildings and historic monuments in an effort to maintain the color and culture of the area and to draw visitors to participate in local pageants and celebrations. In addition, there are examples of restored communities, like Williamsburg, Virginia, wherein a complete town or village becomes a replica of its historical and nostalgic past. Still others, like the Polynesian Cultural Center in Hawaii, seek to create visitor interest through the performance of dances and rituals of several different populations in one museum or geography of exhibits. While these efforts are often applauded, there are many detractors who are critical of such initiatives suggesting that these portrayals are artificial substitutes which demean the society and culture on display. An excellent example of a monumental effort to preserve a cultural, historical and environmental heritage through tourism is the five-nation re- gional project referred to as La Ruta Maya — the Maya Route in Central America. In an 81 -page article in the October, 1989, issue of National Geographic, author and editor Wilbur E. Garrett explains in great detail the opportunity that La Ruta Maya offers to "...increase environmentally-oriented tourism and sustainable, nondestructive development to provide jobs and money to help pay for preservation." To get five countries: Mexico, Belize, Guatemala, Honduras, and El Salvador, all to agree to cooperate in this ambitious regional project provides a model for other parts of the world. 13 Heritage tourism appears to be gaining widespread acceptance as both a part of the overall tourism effort and separately as an archeological attraction. Similar to other aspects of sociocultural tourism, heritage tourism often creates a source of community pride which helps to ease resentment towards visitors. It can also prevent displacement of residents' businesses, particularly in downtown areas which are often in need of economic revitalization. The key is to balance the complaints of local residents about such problems as traffic congestion and lack of parking brought on by visitors, with the potential for economic benefits for the community. It takes strong leadership and commu- nity support to overcome these obstacles and to explain the improvements that tourism can bestow on an area. In summary, a well-planned effort can reap economic benefits, preserve buildings of historic significance, and create pride in the community as well as offer a warm welcome to their visitors. Sustainable Tourism Development: Concerns and Possible Solutions for the Environment The concept of sustainability as a resource development and management philosophy is permeating all levels of policy and practice relating to tourism, from local to global. Sustainable management of the natural and physical environment, more than ever before, must coexist with economic, sociocultural, and health and safety objectives of localities and nations. Because of the 52 interdependence of ecological systems, tourism and the environment inevitably is of international concern and raises a number of issues for the tourism sector. These range from tourism's ability to raise per capita consumption levels in developing countries on a permanent and egalitarian basis to new considerations of decisionmaking power and control of the tourism and devel- opment agenda. Meeting the needs of present visitors and host communities and protect- ing and enhancing the tourism attraction for the future as part of a national economic resource are among the key elements of tourism sustainability. The relationship between tourists, host communities, attractions, and economic benefit is a complex relationship. Each element must maintain its own continuance in symbiosis with the others through development of a mutually beneficial, positive relationship. Competing funding priorities between public and private allocations only dramatize this need. Protection and preservation of the physical environment through minimization of use must be replaced by conservation through maxi- mization of economic return based on scarcity value. 14 Admissions to natural and historic places can be devised commensurate with uniqueness and fragility thereby providing for self-funding of site maintenance and improvements and the moderation of use. Sensitivity to the environment rapidly is becoming a major component of international tourism marketing strategies. Too often we see incidents where visitors become insensitive to their surroundings suggesting that tourists and the environment may not be entirely compatible. Some tourists want souvenirs such as unusual corals, exotic rocks or colorful sea shells. Others trample irreplaceable tundra or otherwise alter natural flora which can cause com- pounding biological damage to other plants and animals. Some people are tempted to chip off a fragment of an Indian abode, steal native artifacts, or otherwise desecrate man-made objects of historical and artistic significance. The environment in which tourism interacts is broad in scope including not only land, air, water, flora and fauna, but also the man-made changes in the environment. The tourist must plan for and adapt to societal differences as well, especially when travelling abroad. The "environment," in its broad definition, is what attracts the tourist in the first place. Often the greater the mixture of elements in a single trip — from rain forests to ruins to river rafting — the deeper and more memorable the experience. In other words, the attraction may be the ecosystem, the wildlife, the rich archeological discoveries, the climate or the culture which the tourist may have read about, or seen on the television screen. The important message is that whatever the environment may be, it must be nurtured, modified and protected for future generations. Recent commentaries paint a bleak picture for tourism's interaction with the environment. In an article entitled "Will There Be Any Nice Places Left?," a number of negative aspects of worldwide tourism are described.' Polluted beaches, urban blight, eroded landscapes, and sprawling slum-like developments are mentioned as frequent sights in tourism areas. Many devel- opments are demeaning to local residents, overcrowded, noisy, conducive to 53 traffic congestion, architecturally tasteless, or burdensome to the infrastructure. Much of these calamities are due to thoughtless tourism policies and careless planning. The world over, people have become increasingly concerned about all aspects of pollution whether it be industrial, noise, people, visual or tourism development. On June 1-12, 1992, delegates representing 150 countries gath- ered in Rio de Janeiro, Brazil, to discuss the environment at the United Nations Conference on Environment and Development (UNCED), better known as the "Earth Summit." Tourism in the environment was only one aspect of this conference. The need to balance the protection of natural resources, such as tropical rainforests, with economic benefits from the defor- estation of such regions has been a controversial issue. In light of catastrophes such as the Chernobyl nuclear disaster or the Valdez oil spill, it is clear that the environment needs to be protected. The fallout from Chernobyl was felt in areas as far away as Scandinavia. Chernobyl was never a big tourist destina- tion, but the tentacles of this disaster polluted huge areas over northern Europe. In Alaska, as a result of the Valdez oil spill, the direct effect on the sea life and the negative impact from the media has changed the perceptions of the area's attractions, seriously curbing the flow of tourism. Most of the evidence suggests that the development of tourism infrastruc- ture and facilities has generally caused less physical environmental damage than the clearcutting of timber, mineral extractions or industrial plants. Yet, there is still reason to be concerned for exploitation due to tourism develop- ment. This concern has given rise to ecological containment in an attempt to preserve the ecosystem and improve the quality of the global environment. The recognition of this need has important benefits for the long-term health of the tourism industry. Without the protection of the scenic splendor that is often the primary attraction to the tourist, the quality of tourism will surely deteriorate. The impact of tourism on the environment has raised sobering issues. The report of the 1973 European Travel Commission Conference on Tourism and Conservation forcefully articulated both the positive and negative factors in the interdependent relationship between tourism and the environment: First. ..environment is the indispensable basis, the major attraction for tourism. Without an attractive environment there would be no tourism... Second. ..the interests of tourism demand the protection of the scenic and historic heritage. The offer in the travel brochure must be genuine... In some countries, tourism... is seen by those concerned to protect the environment as their powerful ally. The desire to gain national income from tourism can impel governments to protect monuments or natural areas they might otherwise have neglected... 54 Third, tourism can directly assist active conservation ...can prompt men to contribute towards. ..conservation ...of (famous places such as) Florence and. ..Venice. The entry fees of tourists help to maintain historic struc- tures and parks. ..Tourist activity may provide new uses for old build- ings... And yet, despite these positive links, many conservationists feel that tourism can present a major threat to the environment. ..that countless hotels, roads and other facilities provided for the tourists ruin the beauties of the seacoast, disturb the peace of the country, and rob the mountains of their serene grandeur ...streets choked with tourist traffic, and. ..squares and market places turned into parks for visitors. 16 The concept of "eco-efficiency" in sustainable development is being used both nationally and internationally to describe those companies — and na- tions — taking advantage of the potential success value of incorporating mini- mum resource use and minimum pollution into public and private sector tourism practices: To practice eco-efficiency, tourism developers need to consider the envi- ronment creatively, throughout project design, construction and operation. Failure to do so could be costly and cause adverse public attention. Those who are responsible for delivering products and services to the visitor must examine their operations in light of sustainable resource management. This may involve any of the following actions: protecting the biosphere reducing, and disposing of, wastes adopting energy efficient practices minimising environmental risks undertaking "green" marketing mitigating environmental damage providing complete and credible environmental information for visi- tors incorporating environmental values in the management of operations conducting regular environmental audits' 7 Fortunately, more and more private/public and non-profit entities are recognizing the value of sustainable tourism development and are cooperating in efforts to set aside specific tracts of land for the protection of the natural environment. Without going into details, Bok Tower Gardens in Lake Wales, Florida, is a prime example of what can be done. The introduction to the Bok Tower Gardens brochure expresses the concept well: Bok Tower Gardens with its sweeping vistas and majestic tower is a place set apart. Here all living things are respected, all people are welcomed. Here is quietude, the day is measured by the light of early morning, noon and sunset. The birds sing but the fish in the moat and the dashing squirrels give a greeting. There is a majesty alike in the 55 clouds in the sky and the lilies by the path. Both the tower and a spider's morning web are masterful designs. This sanctuary is a place. It may also be an experience to be cherished and long remembered (The American Foundation, 1981). In sum, a partnership between public and private sectors will be critical to the success of sustainable tourism development and management: Throughout the world the natural environment is recognised as being under severe pressure. This recognition has crossed political and philo- sophical borders, and the concept of sustainability and stewardship for future generations has widespread support. 18 The development of long-term policies, rather than short-term fixes, is essential to guarantee that tourism growth occurs in a socially, economically, and environmentally responsible manner. The Concept of Ecotourism The term ecotourism was devised in the last decade as a fortunate and timely concept to mitigate the negative environmental impacts of tourism while still generating tourism revenues. It can be seen, in part, as a product of the environmental movement's enormous growth in the 1970s and 1980s: Nearly 7 percent of U.S. travelers, or 8 million adults, reported having taken at least one ecotourism trip (where travelers learn about and appreciate the environment). An additional 35 million adults are likely to take such a trip in the next 3 years, making the potential ecotourism market as large as 43 million U.S. travelers by 1995. 19 Early demographics of ecotourists described a young, male, well-educated traveler. Interest in ecotourism, however, appears to be spreading among other groups in the U.S. population, such as women and older Americans. 20 The term "ecotourism" may best be defined in its most general form as "an alliance between conservation and travel." 21 It has been further defined as "that kind of tourism which is based upon relatively undisturbed natural areas, non-damaging, non-degrading, a direct contributor to the continued protection and management of the natural areas used, and subject to an adequate and appropriate management regime." 22 Healy, in 1988, character- ized ecotourism as "tourism based directly on the use of natural resources in a relatively undeveloped state, including scenery, topography, water features, vegetation and wildlife." 23 The World Tourism Organization defines ecotour- ism as being "geared toward more creative and cultured tourists, respectful of natural and soci-cultural resources. ..requiring greater training, awareness and participation of the receiving population." 24 More specifically, then, ecotourism is an unusual idea that has the potential to defy the normal contentions of most other development-related issues. That is, we are actually witnessing the agreement of two historically 56 competitive sides — those who value environmental conservation at a higher level than revenue-generating enterprise, and those who may value productiv- ity and economic development at the expense of the environment. The unique vision is that we can have the best of both worlds. Potential tourism-related revenues from ecotourism give the environmentalists more credibility and economic justification in their efforts, and it allows developers to justify environmental conservation because economic revenues, such as value and pro- ductivity, can be generated through tourism. Ecotourism can embody "styles of development for the entire economy which are more community responsive, smaller in scale, and ecologically sustainable." 25 There are those who address the ambiguities surrounding the relative impact of tourism styles on the environment: It is possible that the person who flies to an area in a full-capacity jet, travels on large buses using a low per-capita amount of petrol, and stays in a large-scale hotel or on an off-shore cruise ship may be the true ecotourist. 26 Although ecotourism is not without its critics, in essence it appears to provide a productive use for environmental conservation and the preservation of the quality of life of local communities. 27 The developers' maxim of "highest and best use" is being satisfied, yet at the same time not at the expense of the environment. Additionally, the implication that ecotourists are somehow better than other visitor types is both real and wrong. The provision of recreation and leisure for the masses is legitimate, necessary for sustaining society, and an important responsibility of many protected areas. There is now real value in keeping the green places green and open spaces full of the diversity of wildlife — all created by the emerging global market for ecologi- cally based tourism. A number of studies on the socio-economic characteristics of nature of ecotourists identified visits to protected areas as the major reason behind travel decisions. In a World Wildlife Fund airport survey of departing tourists, this reason was cited by 46 percent of tourists surveyed in Belize, 41 percent in Costa Rica, 25 percent in Dominica, 65 percent in Ecuador, and 42 percent in Mexico. 28 Experiencing natural phenomena and being physically active with a similarly inclined group of people are key elements. Ecotourism, however, like any other form of tourism, requires careful planning to be successful. In the words of Peter Berle, president of The National Audubon Society: Ecotourism is big business. It can provide foreign exchange and economic reward for the preservation of natural systems and wildlife. But ecotourism also threatens to destroy the resources on which it depends. Tour boats dump garbage in the waters off Antarctica, shutterbugs harass wildlife in National Parks, hordes of us trample fragile areas. This frenzied activity threatens the viability of natural systems. At times we seem to be loving nature to death. 57 Two problems that very often arise in ecotourism development are the tension between traditionalism and tourism and the question of distribution (or redistribution) of the benefits of ecotourism. 29 We have already discussed the former of the these concerns in the beginning of this chapter, yet the latter deserves some attention here. The age-old question of the distribution of wealth has been, and contin- ues to be, a central focus of economists' work. Who gains and who loses by developing ecotourism in an area? A specialized branch of economics, cost- benefit analysis, tells us very basically that if we add up all the benefits of the development project including revenue generated, goodwill and educational enlightenment, and conservation, and we compare that number to all the costs involved for the people and environments that are affected, then we should only do the project if the benefits are greater than the costs. 30 The difficulties arise, however, when it is obvious that there are no mechanisms to ensure that those who are bearing the costs are duly compensated so that no one group or ecological system is made worse off or degraded by the development project. Resentment and other more serious problems are sure to arise when local changes take place that do not directly benefit the people in the area. To survive, ecotourism must be operative across natural, cultural, and socio- economic "environments" of local regions and polities. A simple example of the distribution question brings the theory to a practical level. Rural area residents would resent the allocation of major tracts of land, previously used for grazing, into parklands that are off limits to domestic cattle. There must be some compromise — the rancher must receive some form of reimbursement that equals or exceeds the loss in grazing land. In the end, the rancher should be no worse off. Recently, strategies such as compromised land-use zones, direct compensation schemes, worker retraining programs, and joint decision-making processes have been used in the United States and abroad to mitigate problems of the distribution of benefits asso- ciated with ecotourism development. 31 The promise of "a new partnership between conservation and tourism" is evident requiring the forging of new policy and management tools. Such issues as the development of appropriate guidelines, assessments, and monitor- ing for tourism within protected areas; the availability of resources for management; the existence of certification and training programs, and the commitment to policy formulation all are integral to ecotourism's long-term >n< * ss. 33 When properly organized, tourism can provide an incentive for the protection of national parks, the restoration of historical monuments and the preservation of cultural events. In many places in the world, the expenditures made by tourists are the economic means for protecting the environment. In a story in U.S. News and World Report, on May 4, 1987, Bruce Wilson from the Center for Conservation Biology at Stanford University said: "What has saved gorillas and cheetahs in Africa is the prospect of $500 million a year from safari-bound tourists." 34 Thus, tourism development by definition does not mean destruction; it can have positive effects on a region. 58 The Challenge It is already clear around the world that tourism has many serious negative connotations in relation to sociocultural and environmental desecra- tion. Yet, we may argue that there is a very natural interdependence of tourism and the culture and environment of a country. The potential positive interactions between tourism and both the physical and social environment were most eloquently addressed in a speech by the President of India, Giani Zail Singh, before the General Assembly of the World Tourism Organization in New Delhi on October 3, 1983. He said: ...Tourism can become a vehicle for the realization of man's highest aspirations in the quest for knowledge, education, understanding, accep- tance and affirmation of the originality of cultures, and respect for the moral heritage of different peoples. I feel that it is these spiritual values of tourism that are significant... Tourism has also made it possible for nations to develop strategies for the conservation of natural and cultural heritage of mankind. Planning for economic growth and development must go hand in hand with the protection of environment, enhancement of cultural life, and maintenance of rich traditions which contribute so greatly to the quality of life and character of a nation. The rapid and sometimes alarming deterioration of the environment due to pollution which is entirely man-made must be a matter for concern to all of us, who hold in trust on behalf of our peoples, the distinctive heritage of our respective countries... 35 Achieving a nation's quality of life through tourism is a sobering chal- lenge, particularly in the final years of this millennium. Yet, this intellectual transformation will never happen by itself. It will come to pass only as an integral part of a regimented policy and planning process for the development of tourism, driven by a universal understanding of the global environment. Endnotes 1 A good reference on cultural development and its relationship to tourism is contained in the Journal of the Mugla School of Business Administration , special issue entitled "International Tourism Congress." Louis Turner and John Ash, The Golden Hordes: International Tourism and the Pleasure Periphery, NY: St. Martin's Press, 1976. For a more complete explanation see David Edgell and Bernetta Hayes, "Cultural Richness in the U.S. Black Community Offers Great Potential for Tourism Development" Business America, September 26, 1988, pp. 8-9. 4 See David L. Edgell, "Tourism: An Economic Development Tool for Black and Minority Chambers of Commerce," Business America, February 15, 1988, p. 5. Karl Kim, Tourism On Our Terms: The Post- Industrial Playground, Denver, Colorado: Western Governors' Association, 1991. ' Manila Declaration on World Tourism, World Tourism Conference, Manila, Phil- ippines, September 27 - October 19, 1980. World Tourism Organization meeting of the General Assembly, Sofia, Bulgaria, September, 1985. 59 8 Salah Wahab, Tourism Management, London: Tourism International Press, 1975. Patrick Long, Jo Clark, and Derek Liston, Small Stakes Gambling In Rural Commu- nities: Policy Implications for State and Local Government, Study in progress, Washington, D.C.: Aspen Institute, 1992. Marj Charlier, "Casino Gambling Saves Three Colorado Towns. ..But the Price is High," Wall Street Journal, Vol. CCXX, No. 60, September 23, 1992. 11 Ibid., p. 5. 12 Ibid., p. 1. For a complete explanation of "La Ruta Maya," see National Geographic, October, 1989. 14 Ministry of Tourism, "Tourism Sustainability: A Discussion Paper," Issues Paper No. 2, Wellington, New Zealand: Ministry of Tourism, December, 1992, p. 4. This paper provides excellent background as a summary of tourism within the concept of sustainability. 15 Williams, Roger M. "Will There Be Any Nice Places Left?," Next, Septem- ber/October, 1980, pp. 76-83. 16 European Travel Commission, Tourism and Conservation: Working Together, London, 1974. 17 Ministry of Tourism, "Tourism Sustainability: A Discussion Paper," p. 8. 18 Ministry of Tourism, "Tourism Sustainability: A Discussion Paper," p. 11. 1; Department of Commerce, U.S. Industrial Outlook 1993 — Travel Services, Washing- ton, D.C.: U.S. Government Printing Office, p. 41-2. 20 Ibid. Susanne Sims, "Eco-tourism: What Does it Mean for Hawaii?," Hawaiian Beat, Hawaii Visitors Bureau: Honolulu, Vol. VI, No. 9, September, 1992. Valentine, Peter, "Ecotourism: What is it and why is it worthwhile." Paper presented at Ecological Tourism and Small Business in the Pacific Conference, Palikir, Pohnpei, Federated States of Micronesia: Economic Development Administration, U.S. Department of Commerce and Pacific Business Center, University of Hawaii, September 17-20, 1991. Also suggested in this paper are a variety of terms sometimes used for ecological tourism: nature- based tourism, nature tourism, natural history tourism, environment-friendly tourism, envi- ronmental pilgrimage, sustainable tourism, alternative tourism, ethical tourism, soft tourism (tourisme doux), nature travel, nature-oriented tourism, wildlife tourism, green tourism, special interest tourism, appropriate tourism, responsible tourism, community-based tourism, soft & hard tourism. Healy, Robert G., "Economic Considerations in Nature-Oriented Tourism: The Case of Tropical Forest Tourism," FPEI Working Paper. Research Triangle Park, NC: U.S. Forest Service Experiment Station. 1 World Tourism Organization, Economic Review of World Tourism, Madrid: WTO, 63. deKadt, Emanuel, "Making the Alternative Sustainable: Lessons from Development for Tourism," Discussion Paper No. 272, Brighton, UK: Institute for Development Studies at the University of Sussex, 1990. 26 Machlis, G. and Bacci, M., "Is Ecotourism Ideologically-Biased, Elitist, Short-Sighted, Anti-Democratic and Unsustainable?," paper circulated, IVth World Congress on National Parks and Protected Areas, Caracas, Venezuela, February 8-21, 1991, p. 1. 7 See also Boo, Elizabeth, Ecotourism: The Potentials and Pitfalls, Washington, D.C.: World Wide Fund for Nature, 1990. 8 See Healy, Robert G., "The Role of Tourism in Sustainable Development," Durham, N.C.: U.S. Agency for International Development and Duke University Center for Tropical Conservation, February, 1992, p. 7. See Goudberg, N.J., Cassells, D.S., and Valentine, P.S. "The Prospects for an Ecotourism Industry in Northern Queensland Wet Tropical Rainforests," in Goudberg, N., Bonell, M., and Benzaken, D., eds., Tropical Rainforest Research in Australia, Townsville, Australia: Institute for Rainforest Studies, 1991, pp. 25-38. An excellent and readable presentation of cost-benefit analysis is E.J. Mishan, Cost-Benefit Analysis, London: Unwin Hyman, 1990. 60 1988, p. A very good discussion of problems encountered with local people and indigenous populations when developing eco-tourism is contained in Nigel Hunter, "Tourism Aspects of Community Based Wildlife Utilization Schemes in Botswana", and John Webley, "The Effect of Eco-tourism on African Cultures and Lifestyles", both in the 7997 Proceedings of the World Congress on Adventure Travel and Eco-tourism, Englewood, CO: Adventure Travel Society. Valentine, Peter S., "Converting Echo-Tourism into Ecotourism: Guidelines for a Conservation-Tourism Symbiosis," paper for Directions for Tourism Conference, Alice Springs, Australia, April, 1992, pp. 8-9. These proposals for ecotourism appear in Valentine, Peter S., "Converting Echo- Tourism into Ecotourism," pp. 8-9. For further information, see results of Workshop on Managing Tourism in Protected Areas held at the IVth World Congress on National Parks and Protected Areas, Caracas, Venezuela, February 8-21, 1992. 34 For another good example of tourism and the environment "symbiosis" see, Valentine, Peter S., "Converting Echo-Tourism into Ecotourism, p. 10. Text of a speech by the President of India, Giani Zail Singh, inaugurating the Fifth Session of the General Assembly of the World Tourism Organization in New Delhi on October 3, 1983. 61 CHAPTER V Projections and Implications of International Tourism Through the Year 2000 It seems reasonable to assume that by the end of the century tourism will be one of the largest industries in the world. Herman Kahn, The Next 200 Years, 1976. In order to make reasonable projections for international tourism through the year 2000, we must be guided by carefully planned policies. These policies should be international in concept and interdisciplinary in approach and application. Essential principles must be developed based not only on eco- nomic benefits but also on ideals for human welfare and the quality of life, from international to local levels. Decision makers in tourism must utilize policies which optimize economic, technological, sociocultural, and environ- mental forces for the benefit of broad-based, yet integrated global objectives. 1 Making long-range economic projections for international tourism is a very uncertain business. There are innumerable sayings about the future — and the exercise of forecasting, especially in relation to tourism. American writer Mark Twain had it right when he said, "Prophecy is very difficult, especially with respect to the future." And the following ancient Chinese proverb was equally apt: "When you talk of the future, even the demons will laugh." 2 This task is compounded by tourism's increasing interdependence with rapid politi- cal and economic changes, technological and sociocultural transformations, and global ecological concerns characterizing today's international relations. To- morrow is unknown to us, and the more tomorrows we put together without attention to major tourism policy issues, the more likely it is that events will take an unexpected turn. Inevitably, intervening factors do exist, such as economic fluctuations, political situations, and developments which affect the safety of travel. Despite these difficulties, it is essential for policy and planning purposes, especially in terms of tourism development and infrastruc- ture planning, to develop some kinds of "guidelines for the future." The following is an attempt to analyze projections for international arrivals to the United States through the year 2000, and suggest what the implications of such projections may be. Change in the World of Tourism Those of us who have been involved with tourism have long accepted the fact that our industry is constantly changing. We know that this year's favorite island in the Caribbean may suddenly be lost to a hurricane, or that a 63 failure in the vineyards, or the rumble of an earthquake may send visitors elsewhere. The loss of one favorite destination may simply shift the visitor to a comparable area or resort. As serious as these catastrophes may be to stricken destinations, it would be a dangerous mistake to forget that there are other grave afflictions which strike our industry suddenly, with cosmic significance, like war and terrorism. But there are also other changes moving in our industry which work more slowly. These may be equal in cosmic dimensions, rather than in a simplistic exchange of target destinations. For example, in the dynamics of transporta- tion we must remember that in half a century steamships gave way to airplanes as the essential travel mode over all the world's oceans, and the deterioration of long-haul passenger railroad services across the U.S., and in many other developed countries, took place in favor of aviation. Now, slowly, in similar dynamics, the old-fashioned objectives of sandy beaches and scenic mountains are being modified by the inexorable threat to our natural environment. Tourism is no longer just sunning and skiing and seeing beautiful things in museums and cathedrals. A new intellectual compo- nent has been added to the complex mix of tourism; that rain forests and grasses are important; that spotted owls and eagles, and wolves and whales are important; that tigers and elephants are important; and that the sky and the sea are important and irreplaceable. Also, that people are important, that tribes and races are important. And, that if we disdain these concerns for only a few more decades, nothing will be important. Assumptions The projections of future international tourism to the United States through the year 2000, described here, have been based on some broad assumptions. First, these projections were developed assuming a relatively "steady state" growth in the economies of the United States and of those nations of the world which are the major sources of tourist visitors to the United States. Second, it is assumed that there will be no major natural disasters or other catastrophic economic effects on the tourism industry, such as a major energy crisis, or a continuing over-valuation of the U.S. dollar. Third, we assume that international impediments to travel will not increase, and, fourth, that political crises such as war, international terrorism, hijacking, and hostage-taking will not reach high enough proportions to have a detrimental impact on world travel. Basic Factors Why do we make projections of international tourism to the United States in the first place? Fundamentally, the reason for such projections is to answer the question: "What decisions have to be made over the next ten years by businesses and governments, at all levels, to assure that tourism can grow 64 in an orderly and environmentally responsible fashion?" In brief, policy and planning based on future predictions must be devised now in order to supply the goods and services for a quality tourism experience in the future. In some respects the demand for tourism is similar to the demand for most products and can be explained in traditional economic terms whereby the determinants are: • the price of the commodity (supply/demand) • the price of competing and complementary commodities • the level of personal disposable income • tastes, habits, and preferences of potential buyers 3 But, in reality, international tourism to the United States is influenced by a wider number of factors including: Economic • strength (or weakness) of the U.S. dollar • currency devaluations • international inflation • disposable income levels • health of the world economy: income and income distribution. • level of international airfares • supply of facilities: transportation, accommodation infrastructure, etc. Technological • introduction of new electronic communication and transportation tech- nologies: computerized reservation systems (CRS), electronic destina- tion marketing, customs and immigration systems, etc. • airline capacity and route agreements • deregulation, standardization, and privatization • intellectual property rights: ownership, control, access. Sociocultural availability of leisure time U.S. promotion abroad (private and public) travel barriers (international and domestic) political relations with source countries socio-demographic changes a more knowledgeable and demanding consumer growth in retiree tourist flows (aging of certain populations) Environmental • population changes and ecological capacity • government regulations on pollution and ecosystem degradation • sustainable tourism development 65 Other less quantifiable influences include the level of education and training, language, customs, cultural interests, personal traits, desire for a change, business needs, shopping, mental relaxation, physical health and safety, and spiritual well-being. The methodology utilized for the projections made in this paper recognize these factors only in an overall macro sense. Results Projected International visitor arrivals to the United States and international tourism receipts will increase substantially over the next ten years. Arrivals were about 39.5 million in 1990, generating $43.4 billion in receipts, exclud- ing transportation. In the first six months of 1992, inbound overseas travel to the United States, excluding Canada and Mexico, totaled 8 million arrivals, a 16 percent increase over the same period in 1991. In 1992, it is estimated that 45.4 million international travelers will visit the United States, 40 percent of which are from overseas. Table 5.1 and Graphs 5.1 and 5.2 illustrate the past, present, and future for international tourism to the United States relative to world tourism arrivals and receipts. Projections for 1993 call for approximately 47.9 million international visitor arrivals for the United States, generating approximately $60.1 billion in revenues (excluding transportation receipts). In the year 1995, it is estimated that there will be approximately 54.2 million arrivals to the United States producing $75.3 billion in revenues (excluding transportation receipts). For the year 2000, it is estimated there will be about 77.4 million international arrivals to the United States with approximately $132.1 billion in receipts exclusive of transportation. The growth projections for U.S. international visitor arrivals and re- ceipts, as shown in Table 5.1, are based on past tourism trends, expert opinions, and other factors. For both arrivals and receipts, the U.S. rate of growth is considerable and quite different from previous periods. The United States reached peak shares in percent of world arrivals and receipts during the Persian Gulf War of 1991-92. As shown in Table 5.1, trends for U.S. tourist arrivals and receipts are projected to return to their pre-Gulf War crisis growth patterns in 1993 through 2000. The important point is that there will be substantial growth in international tourism to the United States over the next ten years. International tourism, in fact, is likely to grow more rapidly than the U.S. economy as a whole and will become increasingly important in the international sector of the U.S. economy. Tourism is one of the largest and most rapidly growing industries in the international market. 4 In 1991 worldwide international tourism arrivals to- taled 449 million. World Tourism Organization projections see a conservative target of 650 million (optimistic forecast, 752 million) tourist arrivals in 2000 with a continued moderate growth of 3 to 4 percent a year during the first decade of the 21st century. Major contributors to this growth will be the fast 66 expanding outbound markets of Asia, the Middle East, and Central and South America, followed by Europe. In general, long-haul and intra-regional travel growth rates are predicted to exceed those of short, mid-length tourism. Table 5.1 WORLD & USA INTERNATIONAL VISITOR ARRIVALS & RECEIPTS 1960-2000 World USA USA World USA USA Year Arrivals Arrivals Share Receipts Receipts Share (Millions) (Millions) (Percent) (Billions $) (Billions $) (Percent) 1960 69.3 5.6 8.1 $6.9 $1.0 14.8 1965 112.9 7.8 6.9 SI 1.6 $1.5 13.3 1970 165.8 12.4 7.5 $17.9 $2.3 13.0 1975 222.3 15.7 7.1 $40.7 $4.7 11.5 1980 287.8 22.3 7.7 $102.4 $10.6 10.3 1985 329.6 25.4 7.7 $115.4 $17.9 15.5 1986 340.8 26.0 7.6 $139.8 $20.5 14.7 1987 366.8 29.4 8.0 $171.6 $23.7 13.8 1988 393.9 34.1 8.7 $197.7 $29.7 15.0 1989 427.9 36.6 8.5 $210.8 $36.6 17.3 1990 455.6 39.5 8.7 $255.1 $43.4 17.0 1991 455.1 42.9 9.4 $261.1 $48.8 18.7 1992(P) 475.6 45.4 9.5 $278.7 $55.2 19.8 1993(P) 503.6 47.9 9.5 $334.0 $60.1 18.0 1994(P) 533.4 50.9 9.5 $389.0 $67.3 17.3 1995(P) 564.8 54.2 9.6 $445.0 $75.3 16.9 2000(P) 752.0 77.4 10.3 $720.0 $132.1 18.3 P — Projected (Receipts are in 1992 USA dollars). SOURCE: Complied by Ron Erdmann, Market Research Analyst, U.S. Travel and Tourism Administration from World Tourism Organization and U.S. Travel and Tourism Administration data on world and U.S. international tourism arrivals and receipts, March, 1993. Globally, spending on travel and tourism represents nearly 10 percent of the world Gross National Product, generating a conservative estimate of $527 billion, or an optimistic projection of $720 billion, in worldwide revenues (excluding passenger fares). Expenditures on travel abroad represent about seven percent of world trade, placing tourism among the three largest items in international trade. With respect to employment, tourism creates nearly 100 million jobs, and is likely to employ even more people in the future based on its continued growth. Tourism is significant as a major contributor to balance of payments for many countries and is often used as a tool for economic development. Some of the social benefits of tourism, such as cultural interactions and expo- sure to different traditions, cannot be measured as precisely but are equally as important because of their contribution to international understanding. 67 CO c o CO Graph 5.1 International Arrivals to the U.S. yu 80 — 77.4 70 — 60 — 54.2/ 50 — 42.9/ 40 — 39.5__ — - 30 — 22J3 254/ 20 — \2A^ 10 t.6 i i i i i i 1£ )60 1970 1980 1985 1990 1991 1995 20 Figures after 1991 are projections based on current trends 150 o100 ■o c o w 50 9. CD O CD a: 1960 Graph 5.2 U.S. Receipts from International Visitors 132.1 48.8/ 75.3/ 10.6 17.9/ 43.4 1 2 \L-— i i l i i 1970 1980 1985 1990 1991 1995 2000 Figures after 1991 are projections based on current trends 68 Implications of Projections There are a wide number of implications which stem from the expected developments in tourism in the next ten years, for the United States as well as on a global scale. In discussing tourism among global leaders the following key areas must be on the agenda: Economic Issues First, international tourism may be reaching the point which, in terms of economic development, Walt Rostow called the "takeoff" into sustained growth, such that by the year 2000 we may reach a period of mass consump- tion of tourism. 5 This trend would be strongly supported by the anticipated relative decrease in the cost of transportation and savings from new commu- nication technologies and the large increases in real per capita income. Second, in the year 2000, the real income per person throughout the world will tend to be higher than it is today with greater equity in income distribution. As a result there will be some increases in the amount of discretionary income available for activities such as pleasure travel. This discretionary income will be spread more widely across the income pyramid than it is today, resulting in a larger proportion of the world's population travelling than does so today. International tourists will include more individuals from the lower end of the income distribution as well as those from the upper end who form the bulk of today's travellers. Third, the economic impact of international tourism will be more highly distributed than it is today. International tourism will become a more impor- tant part of the world economy as tourism grows more rapidly than other areas of the economy. There will be several results of this growth. A larger portion of jobs and income will derive directly from international tourism. The impact on the balance of payments will be greater. For the United States this will mean that a growing proportion of our export earnings would come from selling tourism services — to foreign tourists — rather than from exporting merchandise. And finally, selected state and local economies would be heavily supported by international tourism. Technological Issues First, assuming that aircraft technology and price reduction policies outstrip increases in the cost of jet fuel, the relative cost of tourism will be declining over the next ten years, particularly in the area of transportation. A decline in the relative price of tourism is important because the growth sector of air travel is in pleasure travel, which is more price sensitive than time sensitive. Price is of paramount importance, and scheduling is less important because pleasure travel plans generally are made with considerable advance planning. Second, technology will continue to have a large impact on the travel industry. For example, research is underway to develop an aerospace plane that could fly from the United States to Japan in about two hours and take 69 off and land at conventional airports. In-flight airline telephones and faxes financed through personal credit card charges are revolutionizing the relation- ship of business and travel. "With airplanes fitted out as flying offices, business travelers who once might have used the time to unwind instead are winding up working." 6 Third, information technology will continue to make changes in the travel trade, especially in the area of electronic marketing of tourism services and products. The question of who pays for updating computer data bases for national tourism industries, as well as how these services and facilities are selected and distributed to include unbiased displays and objective data bases that are widely available, are among the concerns. Criteria for selection of services and facilities to be included in electronic data bases must be unbiased and based on the objective of providing technological access to the greatest number of users. The computerized reservation systems of the major interna- tional air carriers are playing an increasing role in information management and services. The diversification and connectivity of these electronic informa- tion systems have stimulated growth away from the simple management of airline flight data, seating, and fares towards information "holding companies" for other airlines and vendors' products. Sabre users, for example, not only can book American Airlines flights but also flights from several hundred other airlines as well as rooms at over 20,000 hotels worldwide. 7 Sociocultural Issues First, as a result of much more widespread international tourism, there will be greater international personal contact between people and greater knowledge about the rest of the world. There will be more cosmopolitanism and less provincialism in the sense that traveling widely will be the expecta- tion of great numbers of people, and little of the world will be totally unknown or unfamiliar. There will be no "dark continents" because travel will shed light on the darkness. There will be a much greater possibility for creating a world of international understanding without sacrificing the cultural heritage of particular countries or regions. Second, the area of education and training also must be addressed. As tourism becomes more important to world economies, the need will arise for a highly educated and trained work force. Along with this is a need for well-qualified educators and trainers as well as greater numbers of higher quality texts and articles to address the issues in the future development and management of international tourism. Third, health, security, and safety cannot be ignored when addressing tourism problems. Tourism policies to combat disease, crime, and accidents need to be formulated and implemented. Transportation accidents, fatalities, and terrorism, for example, have become particular issues of concern. The World Tourism Organization needs to issue health and safety guidelines, and governmental authorities need to be able to ensure the safety of visitors and the security of their belongings through preventive and protective measures. 70 The host nation and localities also must be able to provide conditions of good hygiene and access to health services if they are to offer a quality tourism product. International Political Issues First, the role of international politics will have a great impact on the international tourism sector. Tourism may become even more sensitive to the policies of governments as it grows in size. Impediments to travel such as control of visas, passports, and foreign exchange will have the ability to constrain travel. Alternatively, elimination or amelioration of these impedi- ments will have the power to facilitate tourism. More nations are likely to have bilateral trade negotiations which include agreements for the mutual reduction of existing impediments. Second, when the trade ministers of the world agreed at the General Agreement on Tariffs and Trade (GATT) talks in September, 1986, to include "negotiations on trade in services" (GATS), they opened up opportu- nities for reducing barriers to international travel. If progress is made for tourism to be one of the first sectors for inclusion in negotiations on trade in services, then international tourism would grow even more rapidly. Third, expansion of airports, runways, and air traffic control systems raise political and jurisdictional questions. Additionally, there are several national and international aviation issues including bilateral and multilateral air transport negotiations which contribute to the complexity of domestic and international travel. Environmental Issues First, environmental issues will become increasingly important. As the number of tourists increase, the problem of "crowding" in tourist areas will become more acute, especially in areas which are limited spatially or in ability to absorb large numbers of people. Fragile natural environments such as the Alaskan frozen tundra or the Rocky Mountain soil above the timberline can be trampled and destroyed by tourist hordes. Museums and public buildings can quickly become overcrowded. There will be a greater need to plan for tourist growth to ease crowding and prevent damage to the natural environ- ment. One step in this direction is to reduce the seasonality of tourism. 8 Second, a related problem is the absorptive capacity of an economy with respect to tourism. This questions the ability of an area to supply enough tourist infrastructure and facilities to handle the demand of tourists. There can be limitations because of labor shortages, capital shortages, or land shortages. These shortages can be due to natural scarcity. There also may be alternative uses of resources which the local population finds preferable to setting them aside for tourism. Such resistance to using resources to increase absorptive capacity relative to tourism could become particularly important if local opposition to tourism increases because of environmental concerns. Activ- ities for promoting environmentally sound economic development, such as 71 sustainable tourism, were embodied in the United Nations Conference on Environment and Development (UNCED) held in Rio de Janeiro, Brazil, June, 1992. Third, the environment and natural ecosystems are key areas of concern in developing tourism and, consequently, are generating greater international recognition of the relationship of tourism to pollution and ecological deteriora- tion. Future tourism planning must take the environment into consideration when developing tourism infrastructure and facilities. Fourth, the technologies of transportation raise other concerns, some dealing with the environment. One problem is congestion, especially on highways, in addition to airport traffic both on the ground and in the air. These add to noise and air pollution. Travel Facilitation and Transportation Issues First, as tourism increases there will be greater demands on other sectors of the economy. For example, more airplanes, cruise ships and automobiles will need to be manufactured. Construction of hotels, restaurants and attrac- tions will continue. Agricultural products will be in greater demand. The list continues, but the outcome should be one of positive economic impact in a broad spectrum of the U.S. economy. Second, the recently passed Immigration Reform and Control Act of 1986, contains Section 217 "Visa Waiver Pilot Program for Certain Visitors." Under this section of the Act, the Attorney General and the Secretary of State are authorized to establish a pilot program to waive the visa requirements for 21 countries which qualify under the law. Tourists from these exempted nations can travel to the United States with valid passports without the need to obtain a tourist visa. This, however, does not waive the need for business and student visas. The original eight countries incorporated into the program were France, Germany, Italy, Japan, The Netherlands, Sweden, Switzerland, and the United Kingdom. Due to its success, the Visa Waiver Pilot Program was expanded on October 1, 1992, to include 13 additional countries: An- dorra, Austria, Belgium, Denmark, Finland, Iceland, Liechtenstein, Luxem- bourg, Monaco, New Zealand, Norway, San Marino, and Spain. Each year growing numbers of visitors coming to the United States use the visa waiver program which is resulting in increased pressure to make the visa waiver program permanent. Third, technological advances are revolutionizing and streamlining the federal inspection process into the United States and other countries of the world. There is an increase taking place in the number of machine readable passports and visas circulating internationally. This can speed up inspection considerably. The U.S. Immigration and Naturalization Service, for example, is considering the use of personal characteristics of individual hands, known as "hand geometry," as a computerized means of identification to speed up entry in certain cases. 72 Conclusion This preliminary analysis suggests that there are definite opportunities for growth in international tourism to the United States and other regions of the world for the next decade and beyond. This rosy picture does not mean the horizon is without problems, however. Global growth rates for travel are expected to continue, but to slow, which will increase competition among destination regions and countries for tourism revenues. Increasing awareness of the relationship of tourism to political, economic, sociocultural, and envi- ronmental factors will emphasize the need for increased professionalism in tourism policy, planning, and development strategies. Additionally, the growth in sophistication and distribution of communication technologies associated with information and financial flows across national boundaries has the potential for revolutionizing the day-to-day business of international tourism for the 21st century. 9 Last but not least, on the human scale, travel and tourism have social impacts on communities based on daily contact between international visitors and local residents. Tourism policy must be geared to accommodate local interests, to preserve values and natural and historic sites, and to promote the safety and comfort of the visitor. These often conflicting interests must be taken into consideration when developing international, national, and local tourism policies and understanding projections and implications for tourism as a global industry. The ultimate goal of planning officials and policy makers is to promote tourism growth based on solid economic and technological infrastructures that take aspects of the political and physical environment, community and cultural needs, and tourist safety and welfare into account. Through the cooperation of governments and tourism organizations, problems can be addressed and op- portunities maximized to enhance the prospects for international tourism to the year 2000. Endnotes 1 This chapter is based on David Edgell, Sr., and Ginger Smith, "Tourism Milestones for the Millennium: Projections and Implications of International Tourism for the United States Through the Year 2000," paper presented at the "International Forum on Tourism to the Year 2000: Prospects and Challenges," World Tourism Organization Conference, Acapulco, Mexico, October 22-23, 1992. See also David Edgell, Sr., and Ginger Smith, "International Tourism Policy and Management," in Goeldner, Charles R., and J.R. Brent Ritchie, eds., Travel, Tourism, and Hospitality Research: A Handbook for Managers, and Researchers, 2nd edition, NY: John Wiley & Sons, Inc., 1993 forthcoming. In addition, another good source of information for this paper is contained in David L. Edgell, Sr., International Tourism Policy, New York: Van Nostrand Reinhold, 1990. For a brief outline of some future international tourism trends, see David L. Edgell, Sr., Ph.D., "Trends in International Tourism Through the Year 2000," Trends, Washington, D.C.: National Park Service, Vol. 27, No. 3, 1990. 2 World Tourism Organization, World Tourism News, No. 10, Nov. /Dec. 1992. ^ A good detailed discussion of tourism forecasting is contained in Brian Archer's book Demand Forecasting in Tourism, Bangor, Wales: University of Wales Press, 1976. 73 4 Global trends, projections, and data for this paper were supplied by the World Tourism Organization's conference proceedings, "Expo '92: World Tourism Day," Seville, Spain, September 27-28, 1992. Walt W. Rostow, The Stages of Economic Growth, Cambridge and New York: Cambridge University Press, 1960. 6 Martha M. Hamilton, "Setting Up Shop in a 600 Mph Office," Washington Post, November 26, 1992, D1-D2. For a definitive review on this topic, see Gilbert Archdale, "Computer Reservation Systems and Public Tourist Offices," World Tourism Organization Report, Business Develop- ment Services for Tourism and Technology, London, England, April, 1992. Attempts to reduce the seasonality in tourism are underway in Europe. For a discussion of German efforts in this area, see "Staggering Holidays," Organization for Eco- nomic Cooperation and Development, Tourism Committee, mimeographed, Paris, January 1977. 9 For further examination of tourism, telecommunications technologies, and transnational financial flows see Hamid Mowlana and Ginger Smith, "Tourism, Telecommunications, and Transnational Banking: A Framework for Policy Analysis," in Frank Go and J.R. Brent Ritchie, eds., special edition, Tourism Management: Research, Policies, Practice, December, 1990, pp. 315-324. 74 CHAPTER VI Conclusions and Recommendations Travel and change of place impart new vigor to the mind. Lucius Annaeus Seneca, De Tranquillitate Animi, A. D. 60. Tourism has been expanding rapidly since the post-World War II period, and it may be expected to continue its dynamic growth beyond the year 2000. This is not to suggest that the industry will always grow smoothly; there is reason to believe that there will be occasional structural, economic, political, and philosophical impediments in the path of progress. In past years there has been inadequate public understanding of the economic and social importance of tourism. Recently, however, tourism has been getting more attention from the public and from governmental bodies as this industry grows in stature. Compared to other nations, the United States was a latecomer to tourism public policy. The United States Travel Service was established only in 1961. Twenty years later, the National Tourism Policy Act was enacted, replacing the title of United States Travel Service with the United States Travel and Tourism Administration and initiating major new policy amendments. The recently enacted Tourism Policy and Export Promotion Act of 1992, among a number of items, provides for the formation of a Rural Tourism Development Foundation and grants program aimed at stimulating the U.S. economy, using tourism as an instrument for economic development in under-used regions of the United States. Tourism Policy, National and International Worldwide tourism is an important activity of immense economic, tech- nological, sociocultural, and environmental significance. As a growth industry of increasing complexity, tourism requires definitive policy planning. The 1990s may very well be heralded in future years as the seminal decade for the formation of national and international tourism policies and understandings. This places the heavy burden of opportunity and responsibility on the shoul- ders of our tourism policymakers. In today's complex world, the effects of policy on the tourism industry will have far-reaching consequences for the whole panoply of individuals, organizations, institutions, and local govern- ments engaged directly or indirectly in tourism activities. There is cause for optimism in tourism's future; however, the growth of the industry must focus on an international policy. With the end of the Cold War, the definition of national and regional security is being recast from military into economic terms which acknowledge the importance of capital and information flows, of trade and investments, including trade in international 75 tourism services. The success of international tourism as a global industry in the future will depend on the policies formulated by today's decision makers for managing its development, growth, and maturity. As described in Chapter II, the United States has the resources for improving its comparative advantage in international trade. There is probably no country in the world that has a greater comparative advantage in tourism than the United States. It has an abundance of natural resources as well as cultural diversity with tremendous tourism potential. It has great cities and thousands of small towns and villages. This would suggest not only that the public and private sectors of this industry must learn to market their tourism products more effectively but also that trade policies need to be developed and implemented if the United States tourism industry is to be in a more competitive position internationally. Programs such as the "Visa Waiver" provision of the 1986 Immigration Reform and Control Act are examples of steps made toward improving the United States' position in international tourism. Yet, other policies at all levels of government and the private sector must be responsive to community-level demands for active participation in setting the tourism agenda and priorities for tourism development and man- agement. 1 The private sector industry should encourage policies and programs to help more U.S. tourism businesses enter some facet of tourism or expand their operations into markets abroad. To capitalize on this comparative advantage, there needs to be greater recognition by states, territories and the private sector of the opportunities for conducting business bringing visitors to U.S. destinations. Domestic tourism, of course, is a much larger, more familiar and easier market to enter, with fewer operating costs and restrictions. It must also be recognized that the tourism industry is composed mainly of small firms which often do not have access to international marketing intelligence or lack the knowledge of where to seek technical assistance or join with other destination areas for entering markets abroad. To achieve this objective, it is essential that the government continue its role in providing accurate and timely research, data, and educational publications for this growth market. Considerable progress has been made through USTTA cooperative mar- keting programs, regionally designed programs, as well as individual state and industry initiatives. Certainly one positive direction that some states have taken is the adoption of legislated, comprehensive local government tourism policies. USTTA, for example, has designed a "Model State Tourism Policy" which is available to serve as a starting point for a state or any other entity interested in recognizing tourism as a priority. Telecommunications Technologies of Tourism Rapid advancements in telecommunication technologies today provide a myriad of electronic travel marketing systems for the use of governments, organizations, and individuals. Existing systems are capable of establishing computerized data banks on services, prices, and individual consumers for 76 integrating reservations with other forms of financial and information flows. Such systems offer consolidation of diverse groups of suppliers into a single marketing partnership providing enormous international tourism promotional advantage for national governments. Developments such as these are globalizing the impact of communication technologies on international tourism and presenting a complex and challenging issue area for tourism policy and management today. One tangible result of the intense competition for lucrative electronic market share is the addition of technology and international communication programs to the organizational structure of governmental and institutional travel and tourism divisions. Another, less tangible result has been intra- industry concern (from the U.S. Tour Operators Association, for example) that certain technologies, such as airline computerized reservation systems (CRS), have the potential for discriminating against wholesalers, rural areas, land services, and other non-airline suppliers. Airline users of CRS are examples of powerful capital and information distribution networks now available in a growing international market in diversified tourism-related services. Developments in computer reservation systems and communication reflect the growing globalization of the interna- tional airline business. A few years ago there were fears in industry and government that CRS facilities would be totally dominated by two major U.S. systems: the Apollo system owned by United Airlines and the Sabre system owned by American. There were widespread concerns that the information displayed in these systems would be biased in favor of the owners and that they would have substantial unfair advantages in marketing their own ser- vices. There were also fears that the ownership and control of these two systems would enable them to charge unduly high prices for the services which they provided to other airlines. Two developments have substantially reduced these concerns. First, gov- ernments have taken action to impose codes of conduct on CRS operations to control bias in displays. Such codes have been introduced by the U.S. government, the European Commission, the European Civil Aviation Con- ference, and the International Civil Aviation Organization. Second, diversified ownership and control in the CRS field have occurred as a result of new CRS systems and new agreements between airlines. Competition between these information systems is proving more effective than government regulation in controlling bias and preventing excess charges. Seasonality A serious policy problem which a state tourism policy should address is the matter of seasonality. The seasonality of tourist demand must be aggres- sively confronted if we are to use our tourism resources effectively in the future. It is the seasonality of demand which causes under-employment, under-utilization of facilities and, in turn, a lowered productivity. The seasonality of tourism in the United States at large is aggravated by people's 11 desires to take their vacations during the third quarter when most schools observe summer vacation. Unlike the loss of tangible products, tourism's invisible services perish without a trace. While merchandise can be stored in inventory until it is sold, the "wares" of the travel industry have no "shelf- life." Unused hotel room-nights, cruiseship cabin-nights, airliner and railroad seat-miles, car rental-hours, motorcoach seat-miles and restaurant table-space are highly perishable commodities. Some countries in Europe have implemented "year-round school" poli- cies — or staggered school vacation schedules. This policy came about more than twenty years ago when, on the first day after schools had let out for the summer in Holland, Belgium and West Germany, there was a traffic jam on West German highways that lasted three days, not unlike the weekend trips between Washington, D.C., and Ocean City, MD. The U.S. tourism industry must begin thinking about alternative seasonality possibilities. Some progress has been made in modifying seasonality. Several states have pushed beyond Labor Day to start the school year, and others are considering this move. This serves to lengthen the tourist "season" and makes students available as much-needed workers in camps and resort areas. Some cities have turned to a year-round school system to avoid crowded conditions in the classroom. This leads to staggered vacations which have a positive impact on the travel industry. Positive policies to resolve the seasonality problem are needed in more states and cities. Tourism and the Environment Related to the problem of seasonality is a need to develop ways to resolve the problem of overcrowding and misuse of the environment. Many areas already suffer from pollution and a deterioration of the environment. There are beautiful and scenic mountain areas where lumbering collides with the demand for ski slopes becoming a hazard for avalanches in the winter and mud slides in the summer. There are mountain trails littered with beer and soft-drink cans, plastic, and other debris. One needs only to visit certain beaches to understand the crowding and pollution problems along our coast- lines. Some beachfront hotels are so clustered that the view of the beach itself is spoiled. Many tourism areas are overcrowded, noisy, tastelessly developed and environmentally polluted. In the words of an Organization for Economic Development (OECD) report, "tourism destroys tourism." 2 In the area of tourism and the environment, cooperating governments can make a difference through far-sighted decision making. Compare, for example, the "farsighted decision to build Charles de Gaulle airport outside of Paris with the two decades' worth of wrangling over the site of London's airports." 3 Some progress has been made to ameliorate these problems. Developers have been innovative and creative in tending to the needs of the tourist while at the same time improving the local area. For example, Baltimore's Inner Harbor, Boston's Faneuil Hall Square, Charleston and Savannah's historic preservation areas, and Old San Juan demonstrate that tourism interests and 78 government policies can go hand in hand with the environment. With the likelihood that tourism will continue to grow significantly over this present decade, it would be useful for the tourism industry to develop innovative tourism development policies which will accommodate the tourist without wreaking havoc on the environment. Human Resources Development As the tourism industry grows, policies need to be developed which foster an even more organized and mature industry. As Confucius wrote: "If you plan for a year, plant a seed. If for ten years, plant a tree. If for a hundred years, teach the people." Today, more emphasis must be on developing the capability for operating successfully in a rapidly changing economic and physical environment. Educational training programs are emerging in response to growing needs. Tourism education and training is already a big business. In question are the quality and direction of these programs. Appropriate programs exist for training unskilled and semi-skilled workers if the employer knows where to go or who to ask. The programs are more limited beyond the vocational training level. One of the best designed short-term programs to improve managerial and leadership skills is offered at the Executive Develop- ment Institute for Tourism housed at the University of Hawaii at Manoa. Another excellent short-term program is designed to provide additional train- ing to managers, supervisory personnel and management trainees from the hospitality, retailing and tourism industries, as defined in the series, Manage- ment Seminars on Hospitality, Retailing and Tourism, at the University of the U.S. Virgin Islands. Many states are now developing statewide hospitality training programs in conjunction with their universities. The "Colorado Loves Company" Hospitality Training Program, developed by the University of Colorado's Center for Recreation and Tourism, has components designed for both front-line service personnel and hospitality managers. Although these programs offer sections on international visitor hospitality training, there is a definite lack of accessible training programs for managers and service personnel who deal on a daily basis with the intricacies of international visitors. With tourism arrivals rising rapidly in the 90s, high quality training is essential for the people who will make their visits memo- rable. Many universities across the country now have undergraduate and graduate degree programs in tourism and hotel management for students interested in career development. One problem with academic training in tourism has been the paucity of tourism textbooks or other publications appropriate for teaching tourism courses. Fortunately, over the past ten years, more texts of higher quality have been written about tourism subjects than were written earlier. Progress is still to be made in fostering policies to improve tourism education and training, but the future is promising. 79 Quality Services In tomorrow's tourism market, consumers will be more sophisticated; they will demand a higher quality tourism product and expect a broader array of specialized travel services. The traveller of the future will have greater ability than ever before to obtain information about more destinations through the use of home computers and television videos. Opportunities for learning about specialized travel, whether it concerns tennis or skiing, educa- tion or culture, sandy beaches or white-water rafting, will be at the fingertips of the traveller. More specialized travel services will be in demand, ranging from: • foreign language-speaking airline personnel, tour guides, maitres d'hotel, waiters, telephone operators, and hotel concierge, reception desk, room service and cashier personnel; • foreign language tour cassettes on sightseeing buses and in museums, menus, hotel safety, laundry, security and instruction forms, and aircraft evacuation guides; • universal symbol directional signs in airports, train and bus terminals and public facilities such as convention centers, museums and concert halls; • foreign currency exchange facilities, and • special cuisine to accommodate religious considerations or personal preference. The question remains whether the United States will be ready to provide the services demanded by the increased number of sophisticated visitors from abroad. It may require broad policy changes ranging from increased emphasis on banks and other financial institutions on improving currency-exchange facilities, a better understanding by hotels and restaurants of foreign require- ments in food preparation, and greater recognition by the public sector of the need to provide more international signage. Health, Security, and Safety Health, security and safety will continue to be important policy issues for both the national and international agendas in the future. Policies to combat disease, crime and accidents need to be formulated and implemented. Some people will not travel internationally simply because they are afraid of becoming ill in a strange place. Many are concerned with the hygienic and sanitary standards applied to food and water. Additionally, there are accounts of ear and eye irritations from polluted swimming pools and beaches, infec- tions from rare insects, or contagious diseases. Injuries due to negligence by the visitor or as a result of unmarked dangerous facilities are also common. Even though international visitors make up a relatively small proportion of visitors to U.S. National Parks, they account for a large percentage of accidents. This problem has been partially corrected by increased numbers of 80 international-type symbol signs and other warnings being placed in potentially dangerous areas. Another fear for some international visitors is that of personal safety and the security of their possessions. The concern for bodily harm due to assault is a serious deterrent to travel. In addition, worrying about the possibility of being robbed causes people to avoid certain destina- tions or leads to a lesser quality visit because of possessions left behind. 4 Precautions of this kind have been voiced often enough in international tourism circles to cause policymakers to be gravely concerned. One interna- tional policy response was to include some of these concerns in the Tourism Bill of Rights and Tourist Code adopted (September 1985) by the World Tourism Organization. The Bill and Code include such references as: Article IV: c) ensure the safety of visitors and the security of their belongings through preventive and protective measures; d) afford the best possible conditions of hygiene and access to health services as well as of the prevention of communicable diseases and accidents. The implementation of such policies is important if international tourism is to grow in volume as well as in quality. Political Change and Natural Disasters The face of international tourism itself is constantly changing in concert with the new international relations of the 1990s. It is, for example, tourism's interdependence with contemporary affairs that also makes it vulnerable as an industry to the grave afflictions which can strike suddenly, with global significance, such as terrorism and war. Even more attention, at the policy level, needs to be devoted to preparing responsive travel industry management plans to counter long-term negative travel responses to terrorist attacks, military hostilities, or Chernobyl-type accidents and natural disasters such as earthquakes and tornadoes. If terrorism, hostage-taking and hijacking emerge in the future, there will be an even greater negative impact on tourism. Policies to improve the security of all modes of transportation must be developed and implemented. As buyers, suppliers, policy makers, and consum- ers, we know that this year's favorite island in the Caribbean or Hawaii may suddenly be lost to a hurricane or that a failure in the vineyards or rumble of an earthquake in California may send visitors to new destinations. Lack of access to one popular destination may simply shift travel to a nearby area, or it may dramatically redistribute tourism flows to entirely different regions of the world. What is at work is tourism's increasing interdependence with global affairs in every way imaginable — geographically, politically, economically, socially, and culturally. Change is a necessary response to this increasing worldwide interdependence, and perhaps no industry in the world today is better adapted than tourism to weather the vicissitudes as well as to reap the 81 benefits of change. By understanding tourism's interdependence in global affairs, we can both anticipate and become better managers of the rapid changes taking place within and outside of the tourism industry. As a result of this knowledge, we can better capitalize on tourism's unique resilience and dynamism as one of the largest and most diverse industries in the 21st century. Barriers to International Travel The problems confronting trade in international tourism services in the world are many and varied. Some are peculiar to individual aspects of tourism such as customs regulations, documentation formalities, and regulations affect- ing transport, lodging, and travel agencies. Others are more general in nature and apply to several aspects of tourism, such as market access and operation of subsidiary companies. Most of the problems do not lend themselves to quick solutions, particularly when actions are required by national legislatures or other deliberative bodies. In other words, the value of the international travel market in the world would be greater were it not for a number of non-tariff restrictions affecting travel and tourism services. Now that the General Agreement on Tariffs and Trade (GATT) has agreed to negotiations on trade in services, it is time to focus attention on tourism as a prime component of international trade. Barriers to international travel can seriously hamper the growth of tourism. The value of the interna- tional travel market would be greater were it not for a large number of institutional restrictions. A dramatic example was that of France in 1983, when the government adopted temporary restrictions on the number of trips and the amount of money that French citizens could take abroad. Although the restrictions were imposed for a serious deficit in trade payments and were subsequently rescinded, this action had a significant effect on tourist earnings of other European countries during the crucial summer vacation period. If barriers such as these can be eliminated or even reduced that will mean freer trade-in-tourism, higher tourism receipts, more job opportunities, and, equally important, increased political stability and more peaceful progress toward national and international goals. Tourism and World Peace A final policy issue which is considered here relates to the opportunity for increasing knowledge and understanding between peoples of the world through the growth of tourism. Worldwide tourism will mean greater personal contact and understanding by foreign nationals of the social, political, and economic habits and customs of the destinations visited. While certainly there are many sites where tourism does have a negative impact on an area, this is not normally the case. A carefully planned, well-organized tourist destination can benefit local residents through exposure to a variety of ideas, people, 82 languages and other cultural traits. It can add to the richness of residents' experiences by stimulating an interest in the area's heritage through restora- tion and preservation of historical sites. Organized cultural tourism develop- ment can provide opportunities for local people to learn more about themselves, thus increasing feelings of pride in their culture and a heightened perception of their own self-worth. Tourism can also contribute to cultural revival. There are numerous examples where the demand by tourists for local arts and crafts has heightened the interest and maintained the skills of local artisans and crafts- men by providing an audience and market for their art. This preservation, whether it be in local artifacts, historic sites or religious rites, forms the heritage of an area or country. In this light, the countries of the world, working through an organization like the World Tourism Organization, can search out venues and circumstances to advocate travel and tourism policies that promote goodwill, peace and mutual understanding. There are many other areas of tourism policy, including rural tourism development, which need attention as international tourism grows. The above issues suggest an agenda for tourism on the economic, foreign relations and social fabric of this nation. It is up to the public sector, not only at the Federal, but at the state and local levels of government to provide the leadership needed in order that future tourism growth fosters positive interna- tional trade policy in tourism. If such action is forthcoming, charting a course for world tourism at the millennium will help us reach the policy goal set forth at the beginning of this booklet: ...the highest purpose of tourism policy is to integrate the economic, political, cultural, intellectual and environmental benefits of tourism cohesively with people, destinations and countries in order to improve the global quality of life and provide a foundation for peace and prosperity. Endnotes 1 For a summary of key tourism policy issues, see "Interim Report: Global Assessment of Tourism Policy," Tourism Policy Forum, International Institute of Tourism Studies, The George Washington University, Washington, D.C., March, 1991. 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