Potentiality of Tourism For Poverty Reduction

Lincoln Explorer, Volume 2, Number 1, September 2009, ISSN 1998-
5568
Potentiality of Tourism for Poverty Reduction
Prof. Dr. Zakaria Lincoln*
Abstract
The current paper has analyzed tourism as a tool for poverty reduction. It has discussed
understanding of poverty; dimensions and causes of poverty; poverty reduction action;
challenges and some proposals for poverty alleviation through tourism.
*President & Pro-Vice-Chancellor, IBAIS University, E-mail: president@ibais.edu
Potentiality of Tourism for Poverty Reduction 1

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Potentiality of Tourism for Poverty Reduction
Prof. Dr. Zakaria Lincoln
Introduction:
Poverty alleviation has become an essential condition for peace, environmental conservation and
sustainable development; besides being an ethical obligation in an affluent world, where the
divide between poor and rich nations seems to have increased in recent years.
The potential for tourism to play a significant role in the alleviation of poverty is increasingly
recognized by international bodies and national governments. In 1999, the United Nations
Commission on Sustainable Development urged governments “to maximize the potential of
tourism for eradicating poverty by developing appropriate strategies in cooperation with all
major groups, indigenous and local communities.”
In recent years, tourism has been increasingly recognized for its economic potential to contribute
to the reduction of poverty in developing countries. Its geographical expansion and labor
intensive nature support a spread of employment and can be particularly relevant in remote and
rural areas, where live three quarters of the two billion people under extreme poverty conditions.
Statistics show that tourism in LDCs is still limited: 2.6% of the world market share in terms of
International Tourist Arrivals (ITAs) and of International Tourism Receipts (ITRs). However,
the growth in ITAs has been faster in LDCs than in the developing countries as a whole: 42.5%
in the former and 30.8% in the latter between 2001 and 2005 (15.8% for the world). Also in
terms of ITRs: 50.3% growth in LDCs and 40.6% in the developing world between 2001 and
2004 (33.2% for the world). Tourism is better placed than many other sectors in relating to the
needs of the poor. There are a number of reasons for this, which is presented in the UNWTO
publication on Tourism and Poverty Alleviation. Tourism is consumed at the point of production.
This means that the consumers are much more aware of the production process and the
conditions of those who are providing them with the benefit. There is an opportunity for direct
interaction and for additional purchases to be made. Many of the poorest countries are actually at
a comparative advantage over developed countries in this sector. They have capital assets of
enormous value to the tourism industry - culture, art, music, landscape, wildlife and climate. This
can include, for example, National Parks, where visits by tourists can generate employment and
income for surrounding communities as well as helping in their conservation. Tourism
contributes to a geographical spread of employment. It can be particularly relevant to rural areas
where the above assets are often found. Three quarters of people in extreme poverty live in rural
areas, usually remote from the main centers of economic activity. Tourism can sometimes
provide a source of income in such locations while few other industries can do so. Tourism is a
more diverse industry than many others. It has the potential to support other economic activities,
both through providing flexible, part time jobs that can complement other livelihood options, and
through creating income throughout a complex supply chain of goods and services. It is labor
intensive, which is particularly important in tackling poverty. It also provides a wide range of
different employment opportunities - from the highly skilled to the unskilled. Tourism employs
more women and young people than most other industries. Providing economic benefits and
independence to women is very important in terms of supporting child development and

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breaking the cycle of poverty. It creates opportunities for many small entrepreneurs and is an
industry in which start-up costs and barriers to entry are generally low or can easily be lowered.
Tourism provides not only material benefits for the poor but also cultural pride, greater
awareness of the natural environment and its economic value, a sense of ownership and reduced
vulnerability through diversification of income sources. The infrastructure required by tourism,
such as transport and communications, water supply and sanitation, public security, and health
services, can also benefit poor communities.
The international community, under the aegis of the United Nations, adopted the Millennium
Development Goals (MDGs) in 2000 as a blueprint for solving urgent problems affecting billions
of people around the world, saving the planet from accelerated deterioration and building a better
world in the 21t century. The MDGs can only be achieved if all stakeholders, from the public
and private sectors and the civil society, work together and do their part. The World Tourism
Organization (UNWTO) believes that tourism - which has become one of the most dynamic
economic sectors - is in a very good position to contribute to the MDGs, especially the first one
regarding poverty alleviation.
Objectives:
The objectives of this study are:
• to analysis the poverty reduction strategy through tourism for enhancing a country’s
international profile
• to open the door to new investment
• to raise living standard
• to stimulated economic growth and
• to create new business opportunities.
Methodology:
This study is based on various books, journals and published secondary data mainly from the
World Tourism Organization and World Bank publication.
Literature Review:
In 2007, UNWTO has further intensified its efforts to raise awareness on the “Sustainable
Tourism for the Elimination of Poverty” (ST-EP) Program and to identify and implement ST-EP
projects that help the tourism sector work for the poor. At the 5 ST-EP forum in Berlin, March
2007, UNWTO launched a new brochure on the ST-EP initiative titled “Tourism can help in
Poverty Alleviation; what can you do?”. The brochure is intended to motivate all types of
stakeholders, including tourists, on different ways in which they can contribute to the ST-EP
Program. At the UNWTO General Assembly in Cartagena, November 2007, UNWTO presented
a new 40 pages brochure on the ST-EP Program, which includes ample information on the
collaboration with the Italian Government and the Italian-funded ST-EP projects.
At the beginning of 2006, UNWTO had received an initial contribution from the Italian
Government of € 391913.00 (Euros) for the implementation of seven ST-EP projects in
Nicaragua, Guatemala, Ghana, Mali and Colombia. The implementation of these projects had

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started in 2006, and continued in 2007. In May 2007, the Italian Government approved a new set
of 4 ST-EP projects in Guatemala, Nicaragua, Cape Verde and a Regional Project for West
Africa, with a total budget of € 330,000.00. In September 2007, another ST-EP project for Mali,
with a budget of € 24,500.00, was approved.
The seven ST-EP projects launched in 2006 have been completed in 2007 or are in their final
states of completion. The projects have actively contributed to making the tourism sector work
for the poor and have in some cases resulted in the formulation of new projects that will build on
the activities carried out in 2006 and 2007. The new ST-EP projects approved for Nicaragua,
Guatemala and Mali are an example of this, so are the new proposals for ST-EP projects in
Ghana and Senegal that have been submitted to the Italian Government in 2007.
In 2007, officials of the UNWTO Development Assistance Department have been on missions to
Benin, Ghana, Guatemala, Nicaragua, Mali, Togo and Senegal to meet with Italian NGOs, the
Italian Embassies, and National Tourism Administrations to review the implementation of
ongoing ST-EP projects, as well as to identify and make preparations for new ST-EP projects.
The Brussels Program of Action for the Least Developed Countries (LDCs) for the Decade 2001-
2010 clearly recognized the central role of tourism as “one of the few economic sectors through
which LDCs have managed to increase their participation in the global economy. It can be an
engine of employment creation, poverty eradication, ensuring gender equality, and protection of
the natural and cultural heritage. These facts principally result from the existence, in most LDCs.
of significant comparative advantages that are conducive to viable tourism specialization”. In
Brussels, governments agreed on a number of actions to be taken by development partners to
support LDCs in their development efforts. This strong acknowledgement of the Brussels PoA
on the role of tourism in the development of LDCs, and the corresponding recommendations for
international support included in the Program of Action, are an integral part of a growing
recognition of the key contribution that tourism development can make to equitable economic
and social progress and poverty alleviation. Tourism development, if properly developed and
supported, can indeed be a “quick-win” in overcoming the economic and social conditions that
prevail in LDCs and in accelerating their integration into the world economy.
Understanding Poverty:
There are differing definitions of poverty from those that deal strictly with economic conditions
to those that are broader in nature and consider a comprehensive view of the living conditions of
time less well-off portions of a society. This chapter provides various definitions of poverty used
by the World Bank, the Asian Development Bank and the United Nations who have a common
mission to reduce poverty and improve living standards through sustainable growth and
investment in people.
Since the 1950s attempts have been made to understand poverty at different levels. The most
commonly used measure of poverty has been income levels. However, there is now a recognition
that the definition of poverty goes far beyond this simple measure.
ADB in Fighting Poverty in Asia and the Pacific: Poverty Reduction Strategy (1999) defines
poverty as the deprivation of essential assets and opportunities to which every human is entitled.

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The document argues everyone should have access to basic education and primary health
services. Poor households have the right to sustain themselves by their labor be reasonably
rewarded and have some protection from external shocks. Beyond income and basic services,
individuals and societies are also poor, and tend to remain so, if they are not empowered to
participate in making the decisions that shape their lives.
The World Bank describes poverty in a similar holistic manner through its various dimensions:
levels of income and consumption, social factors, vulnerability to risks and access to sound
socio-political conditions. However, even today poverty is most commonly understood by
income levels and is measured against the poverty line set by the World Bank of one dollar per
day. There is a general consensus among development organizations and workers that to
effectively carry out the mission against poverty it should he understood in all its forms and
dimensions.
ESCAP looks at the various dimensions of poverty and states “Poverty essentially has three
closely interrelated aspects: poverty of money, poverty of access and poverty of power. These
make the working, living and social environments of the poor extremely insecure and severely
limit the options available to them to improve their lives. Without choices and security, breaking
the cycle of poverty becomes virtually impossible and leads to the marginalization and alienation
of the poor from society.
If tourism planners and policy-makers accept these broader definitions, then it is clear the task
facing tourism is more challenging than simply identifying how many people have been raised
from the basic income definition of poverty.
Different Dimensions and Causes of Poverty:

If tourism is to be an effective tool for poverty reduction it is important to understand the
dimensions and causes of poverty, and to identify what dimensions realistically can be addressed
by tourism development. Poverty can be observed in various forms and changes from place to
place, and over time, and personal insecurity perspective.
According to the World Development Report 2000/2001 (2001) the board causes of poverty are:
• Lack of income and assets to obtain basic necessities (e.g. food, shelter, clothing and
acceptable levels of health and education). Assets can be described as good health, the
skills necessary for achieving employment, access to basic infrastructure, money in
savings or access to credit. In addition, social assets such as a network of contacts and
reciprocal obligations which can be called on in a time of need can be essential in moving
from poverty to a state of well-being.
• A sense of being powerless and unheard in various social institutions. These concerns
include unfair sociological conditions where the poor are faced with inhumane treatment,
lack of protection against violence, intimidation and lack of civility and predictability in
their interactions with public officials.
• A vulnerability to adverse shocks linked to an inability to cope with them. The poor are
susceptible to various risks of health, natural of human-made hazards and often are

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incapable of economically, socially, physically and emotionally recovering from the

shocks.
While these are the immediate causes of poverty, there are also global causes of poverty, which
encompass issues such as national and regional economic growth, the impact of globalization,
inequality of income distribution and instability in governance. At the local level poverty
manifests itself in the form of poor health and access to good medical facilities, illiteracy,
irregular income, informal employment, lack of land tenure for housing, lack of basic
infrastructure, etc. At the national level it is reflected in GDP of the country.
Understanding the Difference between Urban and Rural Poverty:

An important dimension to understanding poverty is assessing the difference between urban and
rural poverty given that the characteristics of poverty in both areas are significantly different;
therefore the approaches and strategies to reduce poverty in these areas should be different. The
difference is especially important when determining appropriate measures and poverty reduction
strategies. While the dimensions of poverty in both urban and rural areas are not different, their
causes and manifestations are (as described in Table 1). There are many ways of defining urban
and rural areas and these vary from country to country. This paper defines rural areas as places
where the basic economic activity is agricultural in nature while in urban areas economic activity
is largely non agricultural.
In cities, the World Bank estimate of a dollar a day per person is often too low when considering
the urban poor has other non food-related costs such as transportation, education, housing, water,
sanitation, health care and medicines, etc. Due to the complexities of urban systems the higher
cost of living in urban areas and a diversity of factors such as tenure insecurity, urban
governance and policies and various other factors, urban poverty measures and strategies for
poverty reduction have to be different from those in rural areas.
Table 1: Dimensions and Causes of Urban and Rural Poverty
Dimensions of Cause in Urban Areas Causes in Rural Areas

Poverty
Income • Dependence on cash to purchase • Dependence on agriculture, natural
essential goods and services. resources that depend on climatic
conditions.
• Employment insecurity.
• Poor access to markets to sell produce.
• Unskilled wage work.
• Poor productivity.
• Lack of qualification to get good
jobs. • Lack of access to job opportunities.
• Inability to hold jobs clue to poor
health
• Inability to hold jobs clue to poor
health.
• Lack of access to job opportunities
due to the distances between work

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place and housing.

Health • Overcrowding and unhygienic • Lack of access to health care facilities
living conditions. due to tong distances.
• Living in residential areas that are • Low quality of public sector facilities
prone to pollution and natural and and Services.
human made hazards.
• Low quality of public sector facilities
• Exposure to diseases due to the and services.
poor quality of air water and tack of
sanitation. • Poor nutrition.
• Occupational risks.
• Poor nutrition.
Education • Constrained access to education due • Lack of access to schools of higher
to insufficient school size in rapidly education due to long distances.
growing cities.
• Low quality delivery of education.
• Inability to afford school expenses.
• Inability to afford school expenses.
• Personal safety/security risks deter
school attendance.
Security • Tenure insecure for housing. • Drug and alcohol abuse and domestic
violence.
• Drug and alcohol abuse and
domestic violence. • Property rights.
• Family breakdown and reduced • Exploitation of labors by landlords.
support for children.
• Social and income inequalities in
cities can lead crime.
Employment • Lack of housing. • Lack of access to information on rights
and responsibilities.
• Lack of Legitimate work permits.
• Lack of access to transport, electricity
• Social exclusion. and other communication links.
• Lack of access to job information. • Lack of formal business and
• Lack of rights and responsibilities community organization.
as citizens.
(Source: World Bank, 2000)
In rural areas, most livelihoods depend on access to land and/or water for raising crops and
livestock or access to forests and fisheries. In urban areas the poor depend more on income to
satisfy their basic needs; in rural areas the poor have access to various assets to satisfy their basic
needs such as self production of food and exchange of goods for other necessary goods.
Tourism in Poverty Reduction:

As a tool for poverty reduction, the challenge that remains is how and where tourism can
intervene to provide better opportunities, empowerment and security to the poor at the local
level, and boost economic growth at the national and regional level. Tourism can be an effective
tool to bring about these synergies. Pro poor tourism can be introduced simultaneously in rural

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and urban areas opening various opportunities and access not only for tourists but for local
residents. Since tourism operates through different geographical areas (e.g. mountainous, remote,
coastal, forests, and busy urban areas) it can he an important tool to affect poverty at the national,
local urban and rural levels. Tourism can increase opportunities for the rural poor in their own
communities. It has the potential to help reduce rural out-migration to urban areas, increase
employment opportunities for the urban poor and give them additional income to provide to their
families in rural areas. Also, tourism-related skills learned by the urban poor can he applied in
rural areas, helping to reverse the migration process.
Tourism is therefore an appropriate mechanism for poverty reduction. It not only contributes to
economic growth but can also have social, environmental and cultural benefits and costs.
Tourism provides employment opportunities by diversifying and increasing income which
reduces the vulnerability of the poor. Through increased national income (foreign exchange
earnings and taxation), additional funds can he diverted to poverty reduction programs. There are
several advantages due to inherent characteristics of tourism which make the sector conducive
for pro poor growth. These advantages are (as stated in Tourism and Poverty Alleviation. WTO,
2002):
• Tourism is consumed at the point of production increasing opportunities for individual

and micro-enterprises to sell additional products or services.
• The restriction of access to international markets as faced by the traditional sectors of
developing countries is not applicable to tourism.
• Tourism depends not only on financial, productive and human capital but also largely on
natural and cultural capital which are often assets possessed by the poor.
• Tourism is labor-intensive providing the poor, who have large labor reserves, with
opportunities.
• Tourism thrives on diversity, drawing from a large resource base which increases scope
for wider participation.
• Tourism provides important opportunities for women to find employment.
• Tourism directly respond to poverty reduction objectives since it:
 Unlocks opportunities for pro poor economic growth by providing formal and
informal employment.
 Creates profit and collective income from locally-owned enterprises.
 Facilitates social development by increasing access to infrastructure, providing
local people with the opportunity to access tourism infrastructure.
 Helps increase participation of the local communities in decision-making as
tourism products are often assets owned by the poor.
 Reduces vulnerability by helping to diversify income opportunities.
 Promotes environmental protection as natural amid human environment are the
life lines of tourism development.

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Along with these advantages there are disadvantages of tourism development. Understanding
these disadvantages is important in developing local level strategies for pro poor tourism
development. Some disadvantages are:
• Tourism can create high levels of foreign ownership which can lead to high levels of
economic leakage and minimized local economic benefits. However it must be
recognized that this is no industrial sectors.
• Tourism can impose high levels of non-economic costs on the poor, e.g. loss of access to
resources, displacement from agricultural and housing land.
• Tourism is vulnerable to economic and political changes at the originating market as well
as social and political changes at the destination. The causes and characteristics of
poverty (discussed above) create certain barriers to pro poor tourism development. Some
of these barriers are identified by Jamieson et. al. (2002) and include:
 Lack of education and training.

 Lack of access to credit to finance tourism development
 Lack of organizations to coordinate activities.
 Relatively poor access to tourism infrastructure and assets at times.
 Lack of tourism market knowledge.
 Regulations and red tape.
 Inadequate access to available. as well as potential tourism markets.
 Lack of government programs targeted to the tourism-related informal sector.
Using tourism as a tool for poverty reduction in urban areas is more challenging than in rural
settings, due to the complexity of the decision-making environment, nature of the urban
economic system and the nature of urban poverty. When one considers that within the Asian
region more than 50 percent of people now live in urban areas and the proportion of poor in these
areas is steadily growing, there is an urgent need to understand the use of tourism as a tool for
development. There is a great deal of research and demonstration that must be carried out to
better understand how to include participation of the urban poor in the tourism industry. There is
also a pressing need to understand how to ensure equitable income and benefits distribution
generated by tourism in complex urban settings. While participation of the urban poor in tourism
activities may he perceived as difficult on one hand, there are examples on the other hand of the
industry taking the initiative to set up systems to distribute food and items to the poor thereby
contributing to their quality of life.
Approach to Pro Poor Tourism Growth:

Pro poor tourism intervention requires the development of approaches which reduce the negative
impacts or costs of tourism development and enhance the positive impacts of tourism on the
local community and the national economy as a whole. Pro poor tourism can have the following
impacts:
• Increase demand for goods and services provided by the poor.

• Increase the asset base of the poor.
• Support diversification.

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However, there are some conditions that need to he fulfilled for successful pro poor tourism
which include the following actions:
• Strategies must be supported by national level plans.

• Strategies must be adapted to local conditions, target markets and interests of the poor.
• Involvement of stakeholders is essential with recognition of the poor as legitimate
stakeholders.
• Holistic development and poverty reduction efforts should be adopted.
• Pro poor tourism product development must be linked with mainstream tourism sill
products.
The Role of Local-Urban Authorities in Promoting Pro Poor Tourism:

In meeting the challenge of pro poor tourism it is important that local governments view tourism
as an essential element of the overall management and planning process. It is important that they
adopt tourism planning and processes that support sustainable and pro poor tourism, local area
officials must build their capacities to participate effectively in tourism destination management
process. There are a number of areas where capacity must be developed (mentioned later in this
manual).
It is important for local officials to work effectively with both the public and private sectors in
the planning, management and creation of visitor experiences and attractions. Officials must
monitor and assess the impact of tourism in order to guide policy and the plan-making process.
Some of the overall planning and management roles they can play are illustrated in Figure.
Based on these potential roles some of the undertaken by local level officials are:

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Position and
Marketing
Research
Segmentation
Branding
Political Packaging Information
Commitment Service
Policy Quality Control

Development
Environmental
Planning and Management
Sustainable
Regulations • Housekee
Management of
Planning ping
Tourism at Local
Coordination • Public
Level
Regulations Environmental
Improvement
Events and
Attractions Organization
and
• Planning
Safety and Management
of Events
Security • Facilitate
• Development
Attractions Partnerships
• Facilitate
• Manage
Public
Attractions
Environment
• Set up
Tourism
Councils
Figure: Local Level Involvement in Tourism Planning and Management
Specific Local, Neighborhood & District Level Interventions:

Local governments must developed policies and programs that work at both the local level as
well as the neighborhood and local district levels. The overall policy framework and
administrative structure must create an environment that enables the principles of sustainable pro
poor tourism to occur. It is important that poverty reduction using tourism work at both the
citywide and neighborhood/local levels.
Specific Poverty Reduction Actions:

While there can be no argument that well planned and managed tourism can provide social and
cultural benefits for the poor, it must also he recognized that accomplishing that task will be

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complex and difficult. To meet the challenges related to poverty reduction in tourism the
following actions should be considered:
• Development of demonstration projects designed to enable tourism professionals and the

poverty reduction interests to assess appropriate strategies to adopting a pro poor tourism
approach.
• Training packages designed to assist a range of stakeholders to be more effective in
encouraging and supporting pro poor tourism development.
• Development of specific training programs and technical assistance approaches that can
be employed in poor communities with a tourism potential.
• Development of planning aids such as workbooks and videos to assist in the management
process.
• Development of indicators that will allow governments, aid agencies and industry to
measure success in poverty reduction.
• Regional workshops to share experiences and provide an opportunity for convincing key
decision-makers on the need for poor tourism development.
Infrastructure Development:
Meeting tourism demands requires investment in infrastructure that may also meet community
needs. Tourism planning must look ahead to infrastructure needs, ensure that priorities and time
lines are established and funding obtained. There is little point in developing attractions if there
is a deficiency in basic services that will lead to problems for residents or visitors. As well the
public sector must anticipate infrastructure needs resulting from private developments, otherwise
capacities will be exceeded and both the private and public sectors will consequently suffer.
Details on infrastructure issues can he seen in Chapter IV.
Developing Pro Poor Products and Attractions:

Since the primary involvement of the poor in the tourism industry can be with the operation and
management of tourism facilities and products, it is important to carefully consider the pro poor
development of products.
Tourism an Efficient Tool to Fight Poverty in Developing Countries:

There are two main types of reason that make tourism an especially suitable sector for
developing countries’ sustainable economic development. The first one refers to the very nature
of tourism:
• Tourism is consumed at the point of production; the tourist has to go to the destination,
opening opportunities for local businesses of all sorts, and allowing local communities to
benefit through the informal economy, by selling goods and services directly to visitors;
• Tourism is a more diverse industry than many others, having the potential to support
other economic activities, both through providing jobs that can complement other
livelihood options, and by creating income throughout a complex supply chain of goods
and services;
• Tourism is labor intensive, which is particularly important in tackling poverty. It provides
a wide range of different employment opportunities especially for women and young

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people - from the highly skilled to the unskilled - and generally it requires relatively little
training;
• It creates opportunities for many small and micro entrepreneurs, either in the formal or
informal economy; it is an industry in which start-up costs and harriers to entry are
generally low or can easily be lowered;
• The infrastructure required by tourism can also benefit poor communities (transport and
communications, water supply and sanitation, public security, and health services);
• Most developing countries have a comparative advantage in tourism over developed
countries. They have assets of enormous value to the tourism industry - authentic culture,
art, music, natural landscapes, protected areas, wildlife and climate;
• Tourism provides not only material benefits for the poor but also cultural pride. It creates
greater awareness of the natural environment and its economic value, a sense of
ownership and reduced vulnerability through diversification of income sources.
The second group of reasons refers to the evolution of tourist movements over the last two
decades:
Firstly, tourism is taking an increasing importance in the economy of poor countries. In 2005,
international tourism in developing countries generated foreign exchange earnings for more than
200 billion US$, a huge amount for these economies, and four times the amount earned in 1990.
Table 2: International Tourism Receipts (US$ billion)
1990 2000 2005

World 273 483 682
High income countries 223 357 477
Developing countries 50 126 205
Source: UNWTO, 2006 (based on the World Bank Atlas classification, July 2006)
Secondly, tourist arrivals are growing much faster in developing countries than in developed
countries, as shown in the following tables.
Table 3: Average Annual Growth in International Tourist Arrivals by

Type of Countries, 1990-2005 (%)
7
6
5
4
3
2
1
0
World Developing High Income
Countries Countries

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Table 4: Market Share in International Tourist Arrivals
100
90 28.60 35.20 40.30
80
70
60 71.40
64.80
50 59.70
40
30
20
10
0
1990 2000 2005
High Income Countries Developing Countries
Tourism is the Primary Source of Foreign Exchange Earnings:

In spite of many difficulties that have affected tourism over the last few years - including natural
disasters, health scares, oil price rises, exchange rate fluctuations, military conflict and terrorism,
as well as other economic and political uncertainties - international tourist arrivals worldwide
have continued to grow steadily, exceeding all expectations in 2006 to reach 842 million. The
tourism receipts corresponding to these arrivals reached US $735 billion in 2006. These figures
demonstrate once again the resilience of the industry; they reflect the unstoppable desire of
people to travel and devote part of their income to this purpose.
Tourism growth in recent years has been characterized by two main trends; firstly, the
consolidation of traditional tourism destinations, like those in Western Europe and North
America; and secondly, a pronounced geographical expansion. Indeed, there has been a
substantial diversification of destinations, and many developing countries saw their tourist
arrivals increase significantly. The growth rate in international arrivals for the low and lower-
middle income countries between 1990- 2006 was 271.9 per cent. Among the 30 countries with
the largest poor populations, there were ten countries with a growth in international arrivals
between 1990 and 2001 of over 200 per cent. It is notable that this rate of growth is significantly
greater than that achieved by developed countries.
Figures from the year 2000 indicate that tourism was the primary source of foreign exchange
earnings in the 50 Least Developed Countries (LDCs). This excludes the petroleum industry
which is a source of revenue in only three of the LDCs. Significantly, tourism ranked third
among the major export sectors for both developing countries and LDCs. Tourism is a principal
export for 83 per cent of developing countries, and the principal export for one third of
developing countries.

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Table 5:
(million) Market Share Average Annul

(5%) Growth (%)
1990 2000 2006 1990 2000 2006 1990- 2000-
2000 2006
World 436 684 846 100 100 100 4.6 3.6
Developing Countries 112.8 233.8 333.4 25.9 34.2 39.4 7.6 6.1
50 Least Developed 2.9 6.3 11.4 0.7 0.9 1.3 7.9 10.5
Countries (LDCs)
Other low & low middle 43.8 100.5 162.5 10.0 14.7 19.2 8.7 8.3
income countries1
Upper-middle income 66.1 127.0 159.5 15.2 18.6 18.8 6.7 3.9
economies1
High income countries and 323.2 449.7 512.8 74.1 65.8 60.6 3.4 2.2
other
Source: World Tourism Organization (UNWTO)
(Data as collected by UNWTO, September 2007)
UNWTO’s Activities in the Field of Poverty Alleviation Through Tourism:

At the Johannesburg World Summit on Sustainable Development in 2002, UNWTO launched
the initiative “Sustainable Tourism as an effective tool for Eliminating Poverty” (ST-EP),
inviting UN agencies, governments, donor agencies, NGOs and other stakeholders to join in a
concerted effort to make these mechanisms work. Since 2003, UNWTO has undertaken a
number of activities to materialize the ST-EP program and make tourism work in favor of the
poor.
The Organization has aimed, in the first place, at improving the capacity of national tourism
administrations and local authorities in developing countries to devise and implement poverty
reduction policies, plans and projects, through the development of sustainable forms of tourism.
With this purpose, UNWTO has organized eleven regional training seminars on tourism and
poverty reduction between 2004 and 2006, in order to build capacities among public officials,
NGOs and communities in developing countries, with a total participation of over 1,000 officials
so far.

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Continuous research activity by UNWTO has led to the publication of four reports, providing
evidence of the impact of tourism in reducing poverty levels, as well as recommendation on how
to maximize these impacts.
UNWTO has established the ST-EP Foundation in December 2005, whose sole aim is to
promote poverty elimination through the provision of assistance to sustainable tourism
development projects. The ST-EP Foundation is based in Seoul, Korea, whose government has
provided the first 5 million US$, plus the office and administrative facilities.
The ST-EP Foundation works in close cooperation with UNWTO, coordinating its research and
project activities with those of UNWTO’s Departments. It also cooperates with other
international organizations, development agencies, governments, foundations, corporations,
associations and individuals willing to contribute to poverty alleviation through sustainable
tourism.
UNWTO Recommendation to Governments in Connection with Tourism and Poverty

Alleviation:
1. Mainstreaming: ensure that sustainable tourism development is included in general

poverty elimination programs. Include poverty elimination measures within overall
strategies for the sustainable development of tourism;
2. Partnerships: develop partnerships between international, government, non
governmental and private sector bodies, with a common aim of poverty alleviation
through tourism;
3. Integration: adopt an integrated approach with other sectors and avoid over- dependence
on tourism;
4. Equitable distribution: ensure that tourism development strategies focus on more
equitable distribution of wealth and services - growth alone is not enough;
5. Acting locally: focus action at a local/destination level, within the context of supportive
national policies;
6. Retention: reduce leakages from the local economy and build linkages within it.
focusing on the supply chain;
7. Viability: maintain sound financial discipline and assess viability of all actions taken;
8. Empowerment: create conditions which empower and enable the poor to have access to
information and to influence and take decisions;
9. Human rights: remove all forms of discrimination against people working or seeking to
work in tourism and eliminate any exploitation, particularly against women and children;
10. Commitment: plan action and the application of resources for the long term; and
11. Monitoring: develop simple indicators and systems to measure the impact of tourism on
poverty.
Each Stakeholder can Help for Poverty Reduction:

Have considerable influence on government policies, and can therefore require that specific
public measures are in place to address poverty through tourism development. Bilateral and
international agencies should:

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 Recognize tourism as an economic force in tackling poverty and promote the inclusion of
it as a key sector within PRSPs, supporting tourism as a form of sustainable development.
 Require from governments tourism policies that address poverty issues to be in place as a
condition of finance.
 Join the ST-EP Foundation as full members, taking a major role in shaping its policies
and decisions, and funding ST-EP projects.
 Provide technical assistance and financial support for specific tourism initiatives which
address poverty, ideally in coordination and co-operation with the ST-EP program and its
Foundation.
 Share knowledge and experiences in poverty reduction through tourism.
National and Local Governments:
Are often in a position to influence the location and nature of new tourism development and
should seek to benefit poor communities in so doing.
Governments should:
 Include tourism in strategies and action programs on poverty reduction and vice versa.
 Use planning controls, incentives and contractual relationships with the private sector to
promote sustainable forms of tourism that directly benefit the poor.
 Make legislative changes that improve the ability of poor communities to benefit from
tourism.
 Provide assistance to micro, small and medium- size, and community-based enterprises in
tourism.
 Introduce guidelines and standards which encourage poverty reduction actions by tourism
enterprises, and give recognition to them.
 Implement a marketing strategy that promotes relevant, poverty reduction oriented
tourism products.
 Ensure that tourism negotiations in the CATS framework make a contribution to
sustainable development.
 Use appropriate indicators to monitor tourism impact on poverty.
Non Governmental and Civil Society Organizations:

Have a particularly valuable role to play in networking and forging relevant linkages, in
representing and championing the poor, in capacity building and in identifying social programs
that can be supported through tourism income. They should:
 Represent the poor and build linkages between bodies.

 Build the capacity of poor communities to take decisions about tourism.
 Support MSMEs, community-based tourism enterprises and the informal sector.
 Identify social projects that could he supported by tourism enterprises and visitors.
 Identify and promote good practices.
 If appropriate, join the ST-EP Foundation as full members and fund its projects.

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Destination Management Organizations:

 Which may be local authorities, private public partnerships or possibly protected area
bodies, have a critical role to play in issues such as developing local supply chains and
improving the relationships between the informal economy and visitors. They should:
 Build local mechanisms for working together with the local poor.
 Develop local linkages with the rest of the local economy, i.e. address and enhance the
supply chain.
 Help to develop and market new products that engage the poor.
 Improve information to visitors and tour operators regarding tourism products that favor
the poor, and how they can help in reducing poverty levels at the destination.
 Help the informal sector to engage with visitors.
 Use income from tourism to support poverty related initiatives.
Tourism Enterprises:
Both local and foreign, have to engage in Corporate Social Responsibility actions:
 Hotels and restaurants should focus on improving their supply chain in poor
destinations, preferring local goods (furniture, food items, handicrafts, etc.) and services
(transport, guides, etc.), especially those produced by poor communities.
 Tour operators and tourism service providers should include concern for poverty as
part of their commitment to corporate social responsibility. This must be reflected in
employment policies, supply chain management and support for local communities.
Generally speaking, all tourism operators should:
 Provide relevant information to their guests on poverty matters.

 Make commitments to economic and social aspects of sustainable development.
 Adopt employment policies that provide opportunities for the poor.
 Work with others to develop a local, poverty reduction oriented supply chain.
 Directly support initiatives and projects that benefit the poor.
 Develop and sensitively promote products that involve poor communities.
 Provide visitors with information about activities which will benefit local communities,
and encourage their support.
 Cooperate with the ST-EP Foundation in funding projects at the destinations in which
they operate.
Tourists:
Tourists can do a lot to make their trip an enjoyable experience and a socially responsible one.
They can:
 Before the trip, get better informed about their potential destinations in poor countries
 Select those destinations, tourism products and services that show a commitment to
poverty reduction

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 At the destination, purchase local goods and services at fair prices, spending money
locally, respecting heritage, and helping to promote local employment
 Help local populations develop their own social projects, or support with donations local
initiatives aimed at improving living conditions
Seven Mechanisms for Poverty Alleviation through Tourism:

In order to deliver practical benefits to the poor, a clear understanding is required of the ways to
effectively channel visitor spending and associated investment into improved income and quality
of life for people in poverty, so as to ensure that all possibilities are considered and used
effectively.
The ST-EP Program presented seven different mechanisms through which the poor can benefit
directly or indirectly from tourism. These mechanisms have become an important philosophy of
the ST-EP initiative and have been widely disseminated and incorporated in ST-EP projects,
studies, seminars, training and related conferences. An overview of each mechanism is set out
below:
Employment of the Poor in Tourism Enterprises:

This mechanism involves undertaking measures to increase the level of the poor working in
tourism enterprises. Indeed, the relationship between tourism enterprises and the employment of
local people is symbiotic, in that both sides stand to benefit considerably. This addresses poverty
directly by enabling the poor to develop their own skills; by allowing for the possibility of a
large number of people to benefit directly; and raising the standards of service. It is important
that the provision of education and training is strengthened so that the poor may respond to such
opportunities, and any social or cultural barriers are removed.
Supply of Goods and Services to Tourism Enterprises by the Poor or by Enterprises

Employing the Poor:
One of the fundamental conditions to achieving poverty reduction is in ensuring that goods and
services in the tourism supply chain, as much as possible, come from local sources at all stages.
The objective would be to maximize the proportion of tourism spending that is retained in local
communities and to involve the poor in the supply process. Such a measure would help support
traditional forms of rural activities and skills enhance the quality and identity of the local tourism
product and help establish stable sources of business.
Direct Sales of Goods and Services to Visitors by the Poor (Informal Economy):
One of the main ways in which poor people seek to earn income from tourists is through selling
produce and services, such as fruits, handicrafts or guided tours, directly to them. Where visitors
engage with this informal economy, it can be a successful direct route to providing income to the
poor, and it can provide visitors with a colorful and rewarding experience. Information provision
to tourists on available local products is important, as well as training to local people to ensure
their products meet the quality requirements of visitors.
Establishment and running of tourism enterprises by the poor:

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This involves the establishment and management of more formal tourism enterprises by the poor,
either individually or at a community level. These may include accommodation establishments,
catering, transport, retail outlets, guiding and entertainment. Advantages of enterprise formation
at the local level are that it places power and control in the hands of the local people, it can
guarantee investments for the longer term and it enables enterprises to establish a scale of
Tax or levy on tourism income or profits with proceeds benefiting the poor:
This mechanism relates to the revenues that are earned by national or local government from
tourism which can be used to reduce poverty, It has the advantage that all of the poor can benefit
from tourism without being directly engaged in the sector. The extent to which state revenue
earned from tourism is put towards poverty alleviation will depend on national priorities and
programs. Taxes or levies raised locally, for example through levies on bed-nights or entrance
fees for protected areas, can often be used fully or partly for community benefits. Transparency
in the application of local taxes is essential, as well as consultation with the private sector to
avoid deterring the industry and travelers by imposing too high taxation levels.
Voluntary giving/support by tourism enterprises and tourists:

Voluntary support in money or in kind, given by visitors or tourism enterprises to the poor can
act as influential drivers for local poverty reduction. Various studies have pointed to a
willingness amongst tourists to give something back to the area they are visiting. Many tourism
enterprises are also committed to provide sponsorship to development initiative in the areas
where they operate. Local NGOs or trusts may help develop mechanisms for the collection and
dispersal of donations. Beneficiary schemes clearly showing tangible local impact and
community involvement have a high chance of attracting sponsorship and visitor support.
Investment in infrastructure stimulated by tourism also benefiting the poor in the locality,
directly or through support to other sectors:
Tourism development, particularly in a new, remote or rural location, can include investment in
new infrastructure, such as roads, water and energy supply, sanitation and communications. With
careful planning, such infrastructure can also bring positive benefits to the poor, by providing
them with basic services and opening up new and faster routes to access markets. The main
challenge is to make sure that new tourism development is not consuming resources at the
expense of local communities, but rather offering them the chance to gain new access to them.
Pending challenges and some proposals:

Notwithstanding the efforts undertaken by UNWTO, other UN and bilateral assistance agencies
and NGOs, as well as governments of LDCs to the extent of their abilities, the potential of
tourism to act as an engine for sustainable development, poverty alleviation and the achievement
of several other MDGs in these countries is far from being fully realized.
The main specific constraints -in addition to those of a general nature such as political instability,
insecurity and corruption affecting all areas of activity- that prevent such potential to be fully
developed are:
1. The high proportion of economic leakages, outside the local economy. In many
developing countries and in practically all LDCs, a generally high percentage of the

5568
foreign exchange income generated by international tourist arrivals leaks out of the
economy. This leakage can be in the form of repatriation of benefits of foreign tourism
companies, fees to hotel management companies, remuneration of foreign staff and, last
but not least, imports of goods and services to respond to the tourists’ needs.
The less diversified the economic structure of a country, the higher the level of imports
and of leakages. But even in countries where the economy is capable of producing many
of the inputs required by the hotel industry, such as agricultural produce, textiles and
furnitures, the tendency is towards importing such goods to ensure quality consistency
and regularity of supply.
Much can be done by governments, and particularly by the foreign and domestic hotel
and tourism companies operating in LDCs, to improve this situation in order to reduce
the leakages and increase the linkages between the tourism industry and other local
economic activities. UNWTO is currently engaged in action research projects in this
respect, working with hotel trade associations and governments of a few developing
countries with a view to find the most suitable operational mechanisms to better integrate
tourism with the rest of the local economy.
Professional training of local people at middle and senior technical levels, to allow them
to replace foreign staff in hotels and other tourism establishments is another way of
contributing to reduce the leakages and retain a higher proportion of the tourists’
expenditure in the country.
2. Insufficient awareness among national and international financial authorities about the
real potential of tourism, and especially about the need to carefully plan and decisively
support its sustainable development. It is often believed that tourism can develop and
bear fruits for the host society solely through the action of private investors, which in the
case of most LDCs is mostly foreign. This concept has proved to be wrong. even in
countries that have managed to attract tourism FDI and tourists. To become a sustainable
development opportunity in LDCs tourism requires, in addition to natural and cultural
attractions that are abundant in most countries, at least the following conditions:
a) the involvement of the local people in all aspects and stages of tourism development,
management, operations and monitoring;
b) the definition of a clear long term strategy and carefully designed master plans to respect
the environmental, social and cultural constraints in each country and destination and the
implementation and respect of such plans by all concerned, including private investors
and operators:
c) intensive capacity-building and training of both, national public officials at central and
local levels, and training and empowerment of local communities, to allow them to
become active stakeholders and beneficiaries in the tourism development process;
d) infrastructure support -at least in terms of transport, basic utilities and
telecommunications- without which tourism development is impossible. The
responsibility for the provision of such infrastructure is usually outside the realm of
tourism authorities.

5568
3. Lack of coordination among the many actors that intervene, directly or indirectly, in the
tourism development process. This lack of coordination is observed at the national level,
firstly among different government departments that make decisions on tourism related
issues, for instance concerning transport infrastructure, or natural protected areas, or
education, without considering the implications these decisions may have on the tourism
sector.
LDC governments, at the highest political level, need to understand well the potential of
tourism and especially its unique position, as compared to other economic activities, to
generate entrepreneurial and employment opportunities even in the most remote places
and suitable for everyone. They need to provide a high-powered political framework for
this potential to develop, committing the involvement of all senior ministries, and not
assuming that the tourism authority alone will be sufficient to generate all the conditions
for that development to take place.
4. Secondly, there is often a lack of cooperation and coordination between the public
institutions concerned with tourism and the traditional tourism private sector for
establishing social requirements associated to tourism investments and operations in
LDCs. This lack of cooperation is also manifest between these two stakeholders and the
community-based organizations or single microentrepreneurs that have created a tourism
offer, but that remains outside the mainstream marketing and promotional channels.
National governments as well as the large tourism trade associations could do much more
to generate employment amongst the local poor in LDCs, improve the local supply chain
and support traditional farming, fishing and small manufacturing activities linked to
tourism. This could be done through voluntary agreements, technical assistance to local
suppliers, provision of training for local people to become employees, and even through
regulations regarding employment, levels of pay, import duties and the like.
In most tourism destinations of LDCs a considerable percentage of tourism revenues

“leaks back” to external service providers and to source markets in developed countries,
due in part to the lack of quality local supply. Therefore, the development of local
capacities and the enhancement of linkages with local and national economies can greatly
improve tourism’s contribution to reduce poverty levels.
5. Similarly, the lack of coordination is also common among the UN and bilateral agencies,
as well as international financial institutions and NGOs that provide assistance to LDCs,
either in tourism or in sectors that affect tourism.
UNWTO has made efforts in recent years to attempt a higher degree of coordination with
the aim of increasing the effectiveness of the technical and financial assistance granted to
these countries in connection with tourism. Some progress has been made in this regard,
especially with a few UN agencies and a couple of bilateral agencies. But overall, the
lack of ODA coordination remains and is often expressed in the form of incompatible

5568
projects, or isolated projects that become unviable, or repetition of inconclusive analysis,

etc.
The World Tourism Organization could certainly increase its coordinating role within the
UN family, initially through the United Nations Tourism Exchange Network recently
established to exchange information among the agencies. But the Organization could also
extend its role to act as a catalyst for consistency and synergy among all the technical and
financial assistance granted by a myriad of organizations to LDCs in the field of tourism.
Only with such a coordination and consistency the assistance granted will truly achieve
substantive objectives and realize the potential of tourism towards sustainable
development and poverty alleviation. But to exercise this coordinating role effectively.
UNWTO would need to be financially supported from sources other than the regular.
programmatic contributions of its Member States.
6. Lack of commitment of the private sector. The private sector, especially that with an
international vocation, though it has been active in numerous LDCs. - either as an
investor in tourism infrastructure or as an air carrier or yet as operator of tourism circuits-
has not always exercised full social responsibility vis-à-vis the local population and the
local economic interests. Accusations regarding bad employment and pay practices, or
unfair trading terms, or the inadequate use of natural or local cultural heritage assets, or
the sudden suspension of air travel connections, among others, are common. Similarly,
little efforts have been made by foreign tourism operators to intensify the use of local
resources, in order to avoid the huge economic leakages that are typical of this industry in
most LDCs.
Governments as well as other stakeholders should encourage tile private corporations,

and establish if necessary the appropriate mechanisms for the private corporate tourism
sector to fully comply with its social responsibility vis à-vis the least developed countries.
For this purpose, the IJNWTO Global Code of Ethics for Tourism, and the UN Global
Compact initiatives can be considered as reference.
Tourism in LDCs and some recommendation:
As we know that the three quarter of the two billion people under poverty are live in remote and
rural areas. Most of these three quarters of two billion are live in less developed countries like
Bangladesh, Somalia, Ethiopia, Angola, Sudan and so on. Tourism must be consumed at point of
production. That is if a American or European would like to see Everest, s/he must come to
Nepal. So, it is a big opportunity for LDCs to develop their tourism product and services to
attract people from other part of the world. We can consider the case of Bangladesh. Bangladesh
is a lower developed country with 150 million people and most of them are bellow poverty level.
To reduce this poverty through tourism Bangladesh can take several strategies. For developing
mechanism, we need to identify tourism product and service first. Then we should develop
strategies and implement those strategies to reduce poverty. If we look the tourism product of
Bangladesh, we can see that we have the longest sea beach in the world; the largest mangrove
forest; mountain, wild life and so on. All of our tourism products are situated at rural areas where
most of the people are poor. If we develop our sea beach of Cox’s Bazar and Kuakata, we have

5568
to build so many hotels, restaurants, theme park, museum and different types of rides will create
opportunity for employment that will reduce poverty. Also there is a scope for increasing tourism
related small and medium enterprises that have create a big opportunity to poverty elimination.
On the other hand, infrastructure development is also related to tourism that will create
employment opportunity as well as develop environment and control pollution which has direct
impact on poverty. At the same time, such a way we can reduce poverty by developing world
largest mangrove forest Sunderban and hilly areas in that region. In such way, if we develop all
of our tourism product and service, it is possible to alleviate our poverty as a whole by creating
employment opportunity for the poor in the tourism enterprise, supply goods and service to the
enterprise by the poor or the enterprise employing poor, direct sell product to the tourists by the
poor, establish and run tourism enterprise by the poor; impose tax or levy on tourism enterprise
for poor, voluntary support to poor.
Conclusion:
Tourism can be an effective tool to reduce poverty if it is strategically managed. An
understanding of poverty and poverty reduction strategies is essential to envision how tourism
development can compliment the overall poverty reduction imperatives of accessibility,
vulnerability and empowerment. Tourism can be applied as a poverty reduction tool at both the
national level to boost economic growth and at the local level in both urban and rural settings.
Tourism development can be complementary to several poverty reduction programs of
employment creation, education, SMEs etc. However the negative impacts of tourism should not
he overlooked. While it is possible for sustainable pro poor tourism development to occur at the
destination level without the conditions and mechanisms, it should be evident that pro poor
tourism efforts will be better supported by a national policy making process and decision-making
structure that recognizes the importance of tourism as a tool for poverty reduction. This will also
be dependent on the community and other stakeholders involved in the process to select what
approaches are relevant to their situation and culture. The most important consideration is that all
stakeholders from the community, the public and private sectors must be seen as essential actors
in the overall management of the tourism destination.
References:
Petra, Jordan (2002). Enhancing the economic benefits of tourism for local communities and
poverty alleviation. Madrid: World Tourism Organization (WTO).
Sharpley, Richard (2000). Tourism and sustainable development: exploring the theoretical
divide. Journal of Sustainable Tourism, 8(1).
United Nations (2003). “Poverty alleviation through sustainable tourism development,

New York.
UNWTO (2004). “Tourism and poverty alleviation: recommendations for action”, New York.
World Tourism Organization (2002). “Tourism and poverty alleviation”, Madrid, Spain.

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World Tourism Organization (2005), “Tourism, microfinance and poverty alleviation”,
World Tourism Organization (2006), “Poverty alleviation through tourism:

a compilation of good practices”,
World Bank, http://www.worldbank.org/poverty/strategics/chapters/prologue.htm

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Lincoln Explorer, Volume 2, Number 1, September 2009, ISSN 1998-

Potentiality of Tourism for Poverty Reduction

Prof. Dr. Zakaria Lincoln*

*President & Pro-Vice-Chancellor, IBAIS University, E-mail: president@ibais.edu

Potentiality of Tourism for Poverty Reduction 1

Potentiality of Tourism for Poverty Reduction

Prof. Dr. Zakaria Lincoln

Potentiality of Tourism for Poverty Reduction 2

The objectives of this study are:

Potentiality of Tourism for Poverty Reduction 3

Potentiality of Tourism for Poverty Reduction 4

Different Dimensions and Causes of Poverty:

Potentiality of Tourism for Poverty Reduction 5

incapable of economically, socially, physically and emotionally recovering from the

Understanding the Difference between Urban and Rural Poverty:

Table 1: Dimensions and Causes of Urban and Rural Poverty

Dimensions of Cause in Urban Areas Causes in Rural Areas

Potentiality of Tourism for Poverty Reduction 6

place and housing.

Tourism in Poverty Reduction:

Potentiality of Tourism for Poverty Reduction 7

• Tourism is consumed at the point of production increasing opportunities for individual

Potentiality of Tourism for Poverty Reduction 8

 Lack of education and training.

Approach to Pro Poor Tourism Growth:

• Increase demand for goods and services provided by the poor.

Potentiality of Tourism for Poverty Reduction 9

• Strategies must be supported by national level plans.

The Role of Local-Urban Authorities in Promoting Pro Poor Tourism:

Potentiality of Tourism for Poverty Reduction 10

Policy Quality Control

Figure: Local Level Involvement in Tourism Planning and Management

Specific Local, Neighborhood & District Level Interventions:

Specific Poverty Reduction Actions:

Potentiality of Tourism for Poverty Reduction 11

• Development of demonstration projects designed to enable tourism professionals and the

Developing Pro Poor Products and Attractions:

Tourism an Efficient Tool to Fight Poverty in Developing Countries:

Potentiality of Tourism for Poverty Reduction 12

Table 2: International Tourism Receipts (US$ billion)

1990 2000 2005

Table 3: Average Annual Growth in International Tourist Arrivals by

Potentiality of Tourism for Poverty Reduction 13

High Income Countries Developing Countries

Tourism is the Primary Source of Foreign Exchange Earnings:

Potentiality of Tourism for Poverty Reduction 14

(million) Market Share Average Annul

UNWTO’s Activities in the Field of Poverty Alleviation Through Tourism:

Potentiality of Tourism for Poverty Reduction 15

UNWTO Recommendation to Governments in Connection with Tourism and Poverty

1. Mainstreaming: ensure that sustainable tourism development is included in general

Each Stakeholder can Help for Poverty Reduction:

Potentiality of Tourism for Poverty Reduction 16

National and Local Governments:

Non Governmental and Civil Society Organizations:

 Represent the poor and build linkages between bodies.

Potentiality of Tourism for Poverty Reduction 17

Destination Management Organizations:

Generally speaking, all tourism operators should:

 Provide relevant information to their guests on poverty matters.

Potentiality of Tourism for Poverty Reduction 18

Seven Mechanisms for Poverty Alleviation through Tourism: