Private Enterprise and Financial Markets > Environment
General Overview of Sustainable Tourism
International tourism is big business. It represents one of the world?s largest economic industries. Statistics produced by the World Travel and Tourism Council (WTTC) indicate that tourism generates 12 percent of global GDP, employs 200 million people, and transports nearly 700 million international travelers per year ? a figure that is expected to double by 2020. According to the World Tourism Organization (WTO), international tourism:
- accounts for 36 per cent of trade in commercial services in advanced economies and 66 per cent in developing economies;
- constitutes 3 ? 10 per cent of GDP in advanced economies and up to 40 per cent in developing economies;
- generated US$740 billion in tourist receipts in 2003;
- is one of the top five exports for 83 per cent of countries and the main source of foreign currency for at least 38 per cent of countries; and
- despite periodic upheavals such as the SARS outbreak and the crisis in Iraq, it continues to expand on average at between 4 and 5 per cent annually.
As it pertains to the Americas [1], forecasts for international tourist arrivals in the Americas show that it will increase from 112.4 million (2003) to 282.3 million in 2020. This represents an annual growth rate of 3.0 per cent over the period 1995-2020, a slightly below the world average of 4.1 per cent. Consequently, the overall share of arrivals in the Americas is expected to edge downwards to 18.1 per cent by 2020, losing its second place to the East Asia and the Pacific region. However, long-haul travel to the Americas will grow at a faster rate than intraregional travel.
The individual inbound country forecasts for the main tourist destinations within the Americas show that the United States, Mexico and Canada will remain the leading destinations (recording 2020 arrivals of 102.4 million, 48.9 million and 40.6 million respectively in 2020). The fastest growth rates, however, will be recorded by Cuba (9.2 per cent a year in the period 1995-2020), Argentina (5.1 per cent a year), Brazil (5.0 per cent a year), the Dominican Republic (5.0 per cent per year) and Chile (4.7 per cent a year).
For tourism to succeed today, it must be sustainable economically, socially and environmentally. To be sustainable it must be carefully planned and managed, especially at the community or destination level where the various impacts of tourism are most significant. Experience has demonstrated that destinations which fail to protect their resources and provide quality visitor experience are being overlooked in favor of those which do.
With 700 million people traveling each year, concern for the environmental and social impacts of tourism is growing, especially for people living in areas that are particularly rich in biodiversity and where biodiversity is the major tourism attraction. While tourism can lead to problems such as local congestion, waste, wear and tear on local resources and infrastructure, as well as habitat destruction and the displacement of local people and wildlife, it also has the potential to provide incentives for local conservation of natural resources and the restoration of ancient monuments and archeological treasures.
The IDB is conscious of the need to respond to the requests of the LAC region for improving tourism infrastructure, as an integral component to the development of the region and, at the same time, recognizes the challenges and the opportunities that the industry represents for the preservation of natural and social heritage of the region. The travel market has a strong potential given the region's abundant natural endowments, diverse cultures and rich historical heritage. As such the IDB understands the importance of striking a careful and equitable balance between new tourism development and social and environmental preservation.
[1] WTO does not segregate data for the North American Market which includes Canada, the United States and Mexico.
Last updated: 01/16/07
