FDI in tourism: The development dimension

Reprising tourism and tourism-related FDI as a vehicle for development Many developing countries are looking to tourism as a potentially promising avenue for economic and human development. This is a relatively new position for some countries, and reflects the rapid increase in tourism in terms of both numbers of arrivals and revenues for several economies in recent years. Traditionally, tourism was places below manufacturing or agriculture, since it was not seen as a significant or appropriate source of growth. In contrast, today, a équiet by significant reappraisal" is taking place, which values tourism as a potential means of earning export revenues, generating large numbers of jobs - including for young people and women - promoting economic diversification and a more services-oriented economy, helping to revive declining urban areas and cultural activities, and opening up remote rural areas. For example, there is now growing research on what is called "pro-poor tourism" that is gaining mainstream support through the donor and envelopment-assistance communities. FDI is one of the routes through which developing countries can carry out tourism, but the dynamics of FDI in this dynamic sector, and its implications, have been relatively little studies. There is very little empirical information about the extent of tourism-related FDI in the global economy or irs overall impact. Because tourism is an industry that needs to be managed carefully, with or without FDI, and because FDI poses special challenges and concerns, this report aims to provide information and analyses that will assist policy-makers to design policies that most support their development objectives and strategies.