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2	Outline of the Presentation Role of Tourism in Development Characteristics of Tourism Multilateral Approach: the WTO Agreement on Trade in Services WTO Negotiations on Tourism Bilateral and Regional Approach EPAs Conclusions
3	I. Why do Services Matter? Services are the fastest growing sector of the global economy, growing faster in services than in goods. In the last decade, developing countries as a group have experienced a four-fold increase in their services exports Efficient services play a critical role in achieving long term development and sustained growth It is often the intangible nature of services industries that results in an underestimation of their role in development.
4	I. Services – Vital for Economic Development Tourism contributes an average of 50 per cent of GDP of the CARICOM countries, in Antigua and Barbuda above 80 per cent or as little as in Haiti below 10 per cent Figures on tourism are not well reflected in national statistics perhaps due to the “intangible" nature of tourism and the wide variety of services it covers Performance of the services sectors can represent the difference between sluggish growth and rapid growth
5	I. Role of Tourist Services in the Caribbean Tourism is the most important earner of foreign exchange in ten of the fifteen countries that make up CARICOM and a significant contributor to employment Over 25% of jobs is generated by tourism Tourism is therefore one of the most important driver of growth and development
6	I. Contribution of Services to Economic and Social Development Services provide the infrastructure for all economic activities including health, education, finance, cultural and entertainment activities, tourism among many others The lack of development of an efficient services sector often results in an inefficient utilization or an inability to exploit the natural resources that a country may have.
7	II. Characteristics of Tourism Services Tourism is characterised by: cross-border movement of consumers (the consumer coming to the supplier) a highly “perishable” commodity – and highly dependent on infrastructure various transport services immigration and entry/exit control regulations
8	II. The Definition of Tourism-Related Services Tourism as a service sector under the GATS is very limited in scope It has four sub-sectors: Hotels and restaurants Travel agencies and tour operators’ services Tourist guide services other World tourism organisation SICTA* –70 specific services + 70 other activities related * Standard International Classification of Tourism Activities.
9	II. The Related Industries: Facilitation of Tourism Innovations Events Transportation Airports Hotels and accommodation Security Accessibility Tour Operators Infrastructure Skills Visas Shopping Public services
10	II. An amalgamation of a number of separate industries Transportation services Accommodation services Food and beverage services Travel agency services Recreation and entertainment services Tourist guide services
11	III. The Multilateral Dimension: the WTO The General Agreement on Trade in Services (GATS) establishes a “multilateral framework of rules and principles for trade in services with a view to the expansion of such trade under conditions of transparency and progressive liberalization, and as a means of promoting economic growth of all trading partners and the development of developing countries”
12	III. The General Agreement on Trade in Services (GATS ) Concluded as part of the Uruguay Round Agreements in 1994 • Services sectors covered under the GATS • Business and Professional Services • Communication Services • Construction and related engineering services • Distribution • Education • Environmental Services • Financial Services • Health related and social services • Tourism and Travel related services • Recreational, cultural and sporting services • Transport services
13	III. Four Modes of Supply
14	III. Pillars of the GATS GATS is composed of three pillars Framework Agreement – general obligations Annexes - eight Schedules of Specific Commitments on Market Access and National Treatment
15	"Permanent validity :" Permanent validity : Movement of natural persons Air transport MFN / NPF Telecommunications Financial services
16	"Temporary validity :" Temporary validity : Financial services Maritime transport Basic telecom
17	III. Difficulty with WTO classification under GATS Does not take into account other services activities such as transport, business, distribution, and recreational services that are directly linked to tourism services Proposal to expand coverage in proposed Annex on Tourism services
18	IV. Annex on Tourism As part of preparatory process for Seattle a proposal was presented In 1999 Dominican Republic, Honduras and El Salvador tabled proposal for Annex on Tourism The arguments for such an Annex: GATS definition too narrow GATS Article IV requirements not met Request-offer approach would not achieve liberalization New provisions for anti-competitive conduct
19	IV. The Alternative: the “Cluster” Approach Several Members Also proposed a “tourism cluster” The use of clusters would allow economic linkages to be more clearly recognised by providing a "checklist" outlining the economic interrelations between sub-sectors and thus, contribute to increasing the efficiency and coherence of services negotiations Revised Annex proposed with new cosponsors in 2001and discussed before the Hong Kong Ministerial Difficulties with Annex proposal for several reasons: Cluster approach – pressure and possibility of negative list approach Too comprehensive – difficult to negotiate on a sector by sector basis
20	IV. Different Commitments in different Modes Commitments by Mode of Supply vary widely: Consumption abroad is most liberal Movement of natural persons the most restrictive Commercial presence and movement of natural persons are key areas for future liberalization
21	V. Regional Approach: EPAs Negotiations between the CARIFORUM and the EU started in 2004, and were divided into four main areas: (i) market access (goods); (ii) services and investment; (iii) trade-related aspects and; (iv) legal and institutional issues.
22	V. Main commitments of both the EC and CARIFORUM The EC listed more sectors than the Caribbean countries. Probably the most noticeable outcome of the negotiations was: the inclusion of several commitments on mode 4 (movement of natural persons), especially with respect to contractual service providers and independent professionals.
23	V. EPA and Travel Related Services
24	V. Travel agency and tour operator services:
25	V. Opportunities for Public-Private Collaboration in Seeking Development Assistance The Agreement provides for development assistance in the following areas: The upgrading of national accounting systems to facilitate the introduction of Tourism Satellite Accounts; Capacity building for environmental management in tourism areas; The development of internet marketing strategies for SMEs in the tourism sector; Mechanisms to ensure the effective participation of CARIFORUM States in international sustainable tourism standard setting bodies, programmes to achieve and ensure equivalency between national, regional and international standards for sustainable tourism; and programmes aimed at increasing the level of compliance with sustainable tourism standards; Tourism exchange programs and training, including language training for tourism service providers. In addition Governments have a duty to facilitate the transfer of technology on a commercial basis to commercial presences in the CARIFORUM States; and facilitate the participation of SMEs in the tourism sector.
26	VI. Conclusion Negotiations are ongoing but given the present state of the Doha Negotiations the outcome may take on different shape Caribbean countries will need to define its negotiating interest – multilateral or regional – and act to ensure that trade in tourism services is addressed to play a role in sustainable development