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

ECONOMIC CRISIS, INTERNATIONAL TOURISM DECLINE AND ITS IMPACT ON THE POOR An analysis of the effects of the global economic crisis on the employment of poor and vulnerable groups in the tourism sector. 0 Table of Contents List of Figures ...................................................................................................................... 5 List of Tables ...................................................................................................... 8 List of Textboxes .............................................................................................. 10 List of Maps ...................................................................................................... 10 List of Pictures .................................................................................................. 10 List of Acronyms ............................................................................................... 11 Acknowledgements ........................................................................................... 13 Executive Summary .......................................................................................... 17 I.Introduction ..................................................................................................... 22 1. Purpose of the Study ........................................................................................... 23 2. The Impact of the Tourism Sector on National Economies .................................... 25 3. Characteristics of the Tourism Labour Market ...................................................... 26 4. The 2008-2009 Global Economic Crisis ............................................................... 29 5. Definitions and Theoretical Approaches ............................................................... 30 5.1. Tourism Definitions .................................................................................. 30 5.2. Defining Poverty and Vulnerability ............................................................ 31 5.3. Value Chain Approach ............................................................................. 32 5.4. Sustainable Livelihoods Approach ............................................................ 36 II.Macroeconomic Analysis ............................................................................... 39 Executive Summary .................................................................................................... 39 1. Introduction and Methodology .............................................................................. 40 2. The Economic Significance of International Tourism (1995-2007) ......................... 43 2.1. The Evolution of International Tourism ..................................................... 43 1 2.2. Importance of International Tourism by Region ......................................... 45 2.3. Importance of International Tourism by Income Groups ............................ 52 2.4. International Tourism and Economic Growth ............................................ 57 3. Impact of the Global Economic Crisis on International Tourism ............................ 59 3.1. The Impact on Tourism Demand (2007-2009) ........................................... 59 3.2. The Impact on Tourism Segments ............................................................ 70 3.3. Implications for Employment .................................................................... 72 4. Policy Responses to the Global Economic Crisis.................................................. 77 4.1. Global Measures ..................................................................................... 77 4.2. Policy Measures Regarding Employment and Vulnerable and Poor Groups .................................................................................................... 83 5. Policy Recommendations .................................................................................... 86 III.Case Studies: The Maldives, Costa Rica, and Tanzania ................................ 89 Specific Characteristics of the Case Studies ................................................................ 89 Data and Methodology ................................................................................................ 92 Case Study 1: The Maldives ........................................................................................ 97 Executive Summary .................................................................................................... 97 1. Country Profile .................................................................................................... 99 1.1. Geography and Tourism .......................................................................... 99 1.2. Economy and Tourism ........................................................................... 101 1.3. Poverty and Vulnerability ....................................................................... 105 1.4. Development of Resort Tourism ............................................................. 106 1.5. Structure of the Maldivian Tourism Labour Market .................................. 111 2. The 2008-2009 Global Economic Crisis and its Impact on the Tourism Sector .... 116 2.1. International Tourist Arrivals and Receipts ............................................. 116 2.2. Resort Economies ................................................................................. 119 3. The Impact of the Global Economic Crisis on Tourism-Related Labour Markets ............................................................................................................. 122 3.1. Managerial Response Strategies ............................................................ 122 3.2. Impacts on Employees in the Resort Labour Markets ............................. 125 2 3.3. Estimates of Employees Finding a New Position during the (Post-) Crisis Situation ...................................................................................... 127 3.4. Impacts on Levels of Vulnerability of Poor and Low Skilled Groups ......... 131 4. Public Policy and Business Measures undertaken to mitigate the Impacts of the Crisis on Poor and Vulnerable Groups ......................................................... 133 5. Country Policy Recommendations ..................................................................... 139 Case Study 2: Costa Rica ......................................................................................... 143 Executive Summary .................................................................................................. 143 1. Country Profile .................................................................................................. 145 1.1. Geography and Tourism ........................................................................ 145 1.2. Economy and Tourism ........................................................................... 148 1.3. Poverty and Vulnerability ....................................................................... 151 1.4. Structure of the Costa Rican Tourism Labour Market .............................. 153 1.5. Regional Focus: Guanacaste ................................................................. 160 2. The Global Economic Crisis and its Impact on the Tourism Sector ..................... 165 2.1. International Tourist Arrivals .................................................................. 165 2.2. International Tourism Receipts ............................................................... 168 3. The Impact of the Global Economic Crisis on the tourism-related Labour Markets in Costa Rica and in Guanacaste ......................................................... 170 3.1. Managerial Response Strategies ............................................................ 170 3.2. Impacts on Employment ......................................................................... 173 3.3. Impacts on Employees and the Poor ...................................................... 176 3.3.1 Job Losses since 2008 ..................................................................................... 176 3.3.2 Salary decreases since 2008 ............................................................................ 178 3.3.3 Assessment of the Chances of Finding a New Job ............................................ 180 4. Public Policy and Business Measures undertaken to mitigate the Impacts of the Crisis on Poor and Vulnerable Groups ......................................................... 181 5. Policy Recommendations .................................................................................. 184 Case Study 3: Tanzania ............................................................................................ 187 Executive Summary .................................................................................................. 187 Aims and Methodology .............................................................................................. 189 Methodology .................................................................................................... 189 3 1. Tanzanian Geography ....................................................................................... 191 2. The Tanzanian Economy ................................................................................... 192 3. Tourism in Tanzania .......................................................................................... 196 4. Mount Kilimanjaro ............................................................................................

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