Tourism, growth and poverty: Framework conditions for tourism in developing countries

Tourism in developing countries has grown rapidly in the past 20 years to the point where a fresh look at its underpinnings appears overdue. The industry itself realizes that the quality of growth is as important as quantity. Inevitably, growth and globalization have brought about a change in tourism's structure, driven by competition, consolidation among the main economic players and the revolution in information and technology. The recent Sommets du Tourisme, now in its third year, promoted by the Geneva/ Chamonix/ Mont Blanc tourism industry, took up these issues in December 5–7, 2001. This paper is a result of a presentation made at that Sommets du Tourisme on tourism, poverty and the World Bank Croup's role. The Bank Croup addresses tourism through its regular channels, including poverty reduction strategy papers (PRSP) and country assistance strategy process (CAS). Its interventions focus on public good issues, market failures, and gaps not filled by others. In this framework, this article reviews tourism as a sector that can contribute to sustainable development, including its economic, financial, social and environmental aspects. It argues that developing countries can compete favorably in world markets — they often have the framework conditions which give them a good opportunity to create the new products and services that consumers seek, often in as yet unspoiled areas. Growth and poverty are addressed, as are the policy conditions for making markets work, and assuring the sustainability of tourism's often all too fragile assets. Local communities are often left out of the decision‐making process that determines their future, leading to disenchantment with tourism; similarly, local communities may have difficulty dealing effectively with the burgeoning international travel industry. The paper underscores the importance of institutions, particularly the respective roles of government and industry, and partnership as a source of mutual inspiration. Some examples are offered here as illustrations of types of investment in sustainable tourism.