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Economic Crisis, International Tourism Decline and Its Impact on the Poor Economic Crisis, International Tourism Decline and Its Impact on the Poor

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Economic Crisis, International Tourism Decline and Its Impact on the Poor Economic Crisis, International Tourism Decline and Its Impact on the Poor Economic Crisis, International Tourism Decline and its Impact on the Poor Economic Crisis, International Tourism Decline and its Impact on the Poor Copyright © 2013, World Tourism Organization (UNWTO) and International Labour Organization (ILO) UNWTO, 28 May 2013, for International Labour Organization, for internal use, only. Copyright © 2013, World Tourism Organization (UNWTO) and International Labour Organization (ILO) Economic Crisis, International Tourism Decline and its Impact on the Poor UNWTO ISBN: 978-92-844-1443-7 (printed version) ISBN: 978-92-844-1444-4 (electronic version) ILO ISBN: 978-92-2-126985-4 (printed version) ISBN: 978-92-2-126986-1 (electronic version) Published and printed by the World Tourism Organization, Madrid, Spain. First printing: 2013 All rights reserved The designations employed and the presentation of material in this publication do not imply the expression of any opinions whatsoever on the part of the Secretariat of the World Tourism Organization and International Labour Office concerning the legal status of any country, territory, city or area, or of its authorities or concerning the de- limitation of its frontiers or boundaries. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the Secretariat of the World Tourism Organization or the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the Secretariat of the World Tourism Organization or the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. World Tourism Organization (UNWTO) Tel.: (+34) 915 678 100 Calle Capitán Haya, 42 Fax: (+34) 915 713 733 28020 Madrid Website: www.unwto.org Spain E-mail: [email protected] Citation: World Tourism Organization and International Labour Organization (2013), Economic Crisis, International Tourism Decline and its Impact on the Poor, UNWTO, Madrid. All UNWTO and ILO publications are protected by copyright. Therefore, and unless otherwise specified, no part of a UNWTO/ILO publication may be reproduced, stored in a retrieval system or utilized in any form or by any means, electronic or mechanical, including photocopying, microfilm, scanning, without prior permission in writing. UNWTO and ILO encourage dissemination of their work and are pleased to consider permissions, licensing, and translation requests related to UNWTO and ILO publications. Permission to photocopy this material in Spain must be obtained through: CEDRO, Centro Español de Derechos Reprográficos Tel.: (+34) 913 086 330 Calle Monte Esquinza, 14 Fax: (+34) 913 086 327 28010 Madrid [email protected] Spain www.cedro.org For authorization of the reproduction of UNWTO works outside of Spain, please contact one of CEDRO’s partner organizations, with which bilateral agreements are in place (see: http://www.cedro.org/en) For all remaining countries as well as for other permissions, requests should be addressed directly to the World Tourism Organization. For applications see: http://www.unwto.org/pub/rights.htm Copyright © 2013, World Tourism Organization (UNWTO) and International Labour Organization (ILO) UNWTO, 28 May 2013, for International Labour Organization, for internal use, only. Table of Contents Acknowledgements ......................................................................................................... v About the Authors ............................................................................................................. vii Executive Summary .......................................................................................................... xi 1 Introduction ....................................................................................................................... 1 1.1 Purpose of the Study .................................................................................................. 2 1.2 The Impact of the Tourism Sector on National Economies ........................................... 3 1.3 Characteristics of the Tourism Labour Market .............................................................. 4 1.4 The 2008–2009 Global Economic Crisis ...................................................................... 6 1.5 Definitions and Theoretical Approaches ....................................................................... 6 1.5.1 Tourism Definitions .......................................................................................... 6 1.5.2 Defining Poverty and ulnerabilityV .................................................................... 8 1.5.3 Value Chain Approach ..................................................................................... 8 1.5.4 Sustainable Livelihoods Approach ................................................................... 11 2 Macroeconomic Analysis ................................................................................................. 15 2.1 Introduction and Methodology ..................................................................................... 16 2.2 The Economic Significance of International Tourism (1995–2007) ................................ 18 2.2.1 The Evolution of International Tourism ............................................................. 18 2.2.2 Importance of International Tourism by Region ............................................... 20 2.2.3 Importance of International Tourism by Income Groups .................................. 25 2.2.4 International Tourism and Economic Growth .................................................. 29 2.3 Impact of the Global Economic Crisis on International Tourism .................................... 31 2.3.1 The Impact on Tourism Demand (2007–2009) ................................................. 31 2.3.2 The Impact on Tourism Segments ................................................................... 38 2.3.3 Implications for Employment ........................................................................... 40 2.4 Policy Responses to the Global Economic Crisis ........................................................ 44 2.4.1 Global Measures ............................................................................................. 44 2.4.2 Policy Measures Regarding Employment and Vulnerable and Poor Groups ..... 49 2.5 Policy Recommendations ............................................................................................ 50 3 Case Studies: The Maldives, Costa Rica and Tanzania ................................................. 53 3.1 Specific Characteristics of the Case Studies ................................................................ 53 3.2 Data and Methodology ................................................................................................ 56 3.2.1 The Maldives ................................................................................................... 57 3.2.2 Costa Rica ...................................................................................................... 57 3.2.3 Tanzania .......................................................................................................... 58 Copyright © 2013, World Tourism Organization (UNWTO) and International Labour Organization (ILO) UNWTO, 28 May 2013, for International Labour Organization, for internal use, only. iv Economic Crisis, International Tourism Decline and its Impact on the Poor 3.3 Case Study 1: The Maldives ........................................................................................ 59 3.3.1 Country Profile ................................................................................................ 60 3.3.2 The 2008–2009 Global Economic Crisis and its Impact on the Tourism Sector ..................................................................................... 72 3.3.3 The Impact of the Global Economic Crisis on Tourism-related Labour Markets ............................................................................................... 76 3.3.4 Public Policy and Business Measures Undertaken to Mitigate the Impacts of the Crisis on Poor and Vulnerable Groups ................................ 84 3.3.5 Country Policy Recommendations .................................................................. 89 3.4 Case Study 2: Costa Rica ........................................................................................... 91 3.4.1 Country Profile ................................................................................................ 92 3.4.2 The Global Economic Crisis and its Impact on the Tourism Sector .................. 108 3.4.3 The Impact of the Global Economic Crisis on the Tourism-related Labour Markets in Costa Rica and in Guanacaste .................. 113 3.4.4 Public Policy and Business Measures undertaken to mitigate the Impacts of the Crisis on Poor and Vulnerable Groups ............................... 123 3.4.5 Policy Recommendations ................................................................................ 125 3.5 Case Study 3: Tanzania ............................................................................................... 127 3.5.1 Tanzanian Geography ..................................................................................... 130 3.5.2 The Tanzanian Economy ................................................................................. 130 3.5.3 Tourism in Tanzania
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