Transcript
Page 1: Tourism and national development planning in Tunisia

1991. ‘Winnipeg Free Press, 13 May 1991. 5F. Clines, ‘Chernobyl beckons tourists to visit the radiation zone’, New York Times, 4 February 1991. “Op tit, Ref 4, 4 February 1991. 7’lcebreaker to North Pole’, New York Times, 15 July 1990. “Soviet Far East from Alaska’, New York

Times, 27 October 1990. ‘The Gazette, Montreal, 6 July 1991. “L.N. Ilyina, Osnovnyye principy organi- zatsii sistemy innostrannovo nauchnovo turizma v rayonach Severa, Sibirii i Dalne- go Vostoka (Basic principles for the orga- nization of the system of scientific foreign tourism in the North, Siberia and the Far East), unpublished memorandum, 1989.

Tourism and national development planning in Tunisia Like many other developing countries, Tunisia has expanded its international tourist industry within the framework of national development planning. This paper examines the growth of the industry from its initial stages in the 1960s to its present position as a leading sector in the Tunisian economy. A discussion of the aims and objectives of the Seventh National Development Plan (1987-91) illustrates both tourism’s role in national and regional strategies and the nature of public and private sector cooperation. Finally, plans for expansion and diversification of the tourist industry are evaluated within the context of external constraints.

International tourism has exhibited

substantial growth in the Third World in the past 20 years with countries as diverse as the Gambia, Jamaica, Thai- land, Kenya and Vietnam seeking a share in a market expanding 4% per annum. 1 Tour operators have responded to the demand from indus- trialized countries by arranging a vari- ety of specialized and packaged holi- days to an increasing number of des- tinations. Developing countries have actively participated in this mass mar- ket to secure foreign exchange earn- ings and to develop employment opportunities. Many, however, lack an adequate infrastructure and a trained workforce-to support interna- tional tourism.’ Although expansion to date had been highly dependent on the private sector, Third World gov- ernments have become increasingly involved in the promotion, planning, financing and management of the tourist industry. In many developing countries, international tourism has become a key sector in national de- velopment planning.

Tunisia epitomizes this situation. It is the smallest state in North Africa, covering an area of 153 000 km’, and

in 1990 supported a population of 8.1 million. Despite its size, it offers inter- national tourists a rich diversity of physical landscapes including the Atlas Mountains, Mediterranean coastline and Saharan desert interior. Classified by the World Bank as a lower middle-income country with a GNP per capita of $1230 in 1988, it is also one of Africa’s most politically stable states. This paper traces the growth of the Tunisian tourist industry since 1960 and examines the state’s role in this sector within the context of national development planning. The aims and objectives of the Seventh National Development Plan are evalu- ated and related to policies to expand and diversify the industry.

History and growth

Reports

On independence from French rule in 1956, international tourism hardly ex- isted in Tunisia. During the 196Os, however, the industry expanded rapidly, encouraged by the formation of a government agency, SociPt6

Nationale HBteliPre et Touristique

which became the principal investor in tourism until 1964. In the same dec- ade, the ruling Destour party adopted strong socialist policies in which the main thrust was the collectivization of agriculture. Although tourism was ex- cluded from these policies, it was an indirect beneficiary since many iand- owners withdrew capital from agricul- ture and reinvested it in the expanding tourist industry. Significantly, these socialist policies were abandoned in 1969. There followed a more liberal regime which further encouraged pri- vate investment in tourism and this strategy has continued until the pre- sent day.3

Targets for the expansion of the tourist industry have been laid down in a succession of Five-Year National

Development Plans; the Seventh Plan covered the period 1956-91 and the eighth is scheduled for presentation in 1992.“ As Table 1 illustrates these plans have identified tourism’s role in the context of national development strategy and established targets for overall volumes of supply and de- mand, taxation levels and investment policy. In addition, the government has played an important role in plan implementation and is responsible for the overall management strategy, in- vestment in infrastructure (including internal and external transport links) and marketing policies. Most hotel accommodation has been provided by the private sector but the government

Table 1. Objectives of the Seventh National Development Plan.

Objective 1966 Bed capacity 99 000 Total nights in residence 12 600 000 Rates of occupation (%) 45.5 Direct employment 39 000 Cumulative investment TD 723m Receipts from tourism (annual) TD 390m

Plan period 1991 118000 18 000 000 55.4 46 000 TD 1243m TD 797m

TD = Tunisian Dinar (fl sterling = 1.6 dinar)

TOURISM MANAGEMENT September 1992 331

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Reporfs

--- Beds available - Cumulative investment

1400

Year

Figure 1. The growth of international tourism in Tunisia, 1962-91.

has maintained strict controls over

standards and is responsible for train- ing the labour force. In addition, lei- sure facilities ranging from golf courses to casinos have been financed and developed by the private sector. In contrast, the promotion of Tunisia’s numerous historical and cultural sites remains under governmental control.

SUPPlY Tunisia offers the tourist a number of attractions. Mild winters and hot sum- mers combined with excellent beaches located around the Bay of Hammamet and on the islands of Jerba and Ker- kennah have encouraged the develop- ment of a number of important centres along the Mediterranean coast. Tuni- sia’s position as a meeting point be- tween Europe and the Arab world has provided a wealth of cultural interest based on Phoenician, Roman and Isla- mic civilizations.’ Internationally rec- ognized sites such as Roman Carth- age, the holy city of Kairouan and Le Bardo museuniin Tunis are important tourist attractions. Moreover, given the size of Tunisia, coastal visitors can readily include an excursion to the Saharan oases and sand dunes of in- terior Tunisia within even a short-stay package holiday.

Data produced by the Office National du Tourisme Tunisien (ONTT) chart the progressive growth of the Tunisian tourist industry since 1960.” Expansion has been based on the pro- vision of more than 500 new hotels which have increased the bed capacity

to I I6 531 by 1990. The completion in 1991 of 24 establishments providing an additional 66SO beds has resulted in the aims of the Seventh National De- velopment Plan being exceeded (Fig- ure 1 and Table I). Classified hotel accommodation accounted for over 80% of beds in 1990, the remainder consisted of self-catering units and a small amount of unclassified accom- modation (Table 2). Large self- contained hotel complexes have been a major feature of this expansion. Consequently, the principal tourist re- sorts are dominated by hotels offering 300+ beds, usually of a 3-St&r quality, or above.

Financing the growth of the tourist

industry has resulted in a tenfold in- crease in investment since 1962, lead- ing to a cumulative investment of TD 1218 million (Tunisian Dinars) by 1991. The Seventh National Develop- ment Plan allocated TD 150 million of government funding to meet the costs of infrastructure and promotion. but expected the private sector to finance the TD 370 million required for the superstructure (Table 3). The plan anticipated that most of the private capital would be raised in Tunisia with approximately 20% coming from di- verse sources in Western Europe and the Middle East. Although investment levels have risen sharply since l98S, overall they are TD 25 million short of the Seventh Plan’s target of TD 1243 million of cumulative investment by 1991.

Table 3. Investment in the tourist industry during the Seventh Plan Period, 1987-91.

Planned Investment Tunisian Dinars (Millions)

Infrastructure of which: roads, etc. 25 environmental conservation 10

45

Superstructure of which: 370 hotels 310 transport 20 leisure facilities 40

Other of which: 105 promotion 61

Total 520

Demand for tourism

Until 1991 the demand for tourism in Tunisia has exhibited a fluctuating but upward trend since 1962 with an in- crease in international arrivals from 50 000 to more than 3 000 000 in 1990. Since these figures include periodic influxes of non-tourists from neigh- bouring Arab states, the total number of nights in residence gives a more accurate indication of tourist demand. Over 18.8 million total nights in resi- dence were recorded for international visitors in 1990 which exceeds the pre- dictions of the Seventh Plan by over two million. Figure 2 shows the trends in the nationality of visitors since 19Sl. European visitors were domi- nant with three nations, Germany, France and the UK accounting for 62% of total nights in residence in 1990. Throughout the 1980s the French share of the market has stag-

Table 2. Accommodation category and unit size 1990.

Accommodation category

4-star luxury 4-star 3-star Z-star 1 -star Self-catering Unclassified

Total

Establishment size

Establishments Beds No No %

15 7 106 6 30 12 868 11

107 45 598 39 94 26 149 22 42 3 179 3 55 12 625 11

165 9 009 a

508 116534 100

< 100 100-200 201-300 301-400 401-500 501-1000 > 1000

Total

Source: ONTT.

266 12 968 11 69 9 868 9 28 7 067 6 27 9 429 a 35 15 719 13 69 44 662 38 14 17 091 15

508 116534 100

332 TOURISM MANAGEMENT September 1992

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however, major variations in monthly occupancy rates which in 1990 ranged from 29% in January to 86% in Au- gust. High season occupancv rates have shown an encouraging (5% in- crease on average during the 1980s. LOW season rates have shown little change until January 1991 when they fell to 7% as a result of international tourists being repatriated at the out- break of the Gulf War. Since the cessation of hostilities. the Tunisian National Tourist Board has launched a major promotional campaign through- out Europe with the aim of re- establishing tourist numbers at pre- 1991 levels.

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

French ~ Other European

German I Maghrebian

British I Other

Figure 2. Total nights in residence by international visitors, 1981-91.

nated or declined in contrast to the increasing demand from other Euro- pean nations. Although visitors from the Maghreb constituted 43% of all international arrivals in 1990, they accounted for less than 3% of total nights spent in hotels in Tunisia.

Figure 2 clearly demonstrates the repercussions of changes in the inter- national economy on the demand for tourism and shows the impact of world recession on the downturn of interna- tional visitors in the early 1980s. The sharp increase in demand in 1988, which was prompted by the 28% de- valuation of the Tunisian currency in 1986/7, was exceptional and was only partially maintained in 198Y and 1990. Most significant, however, was the 34% decline in total nights in resi- dence by overseas visitors in 1991. This fall reflected the impact of the political situation in the Middle East which resulted in the rapid repatria- tion of most tourists in January 1991. Confidence in Tunisia as a tourist des- tination returned only slowly among European visitors in 1991. However, provisional figures suggest that 1992 will witness a fuller recovery and

bookings for the 1992193 winter season are encouraging

Seasonality is a marked feature of the demand for tourism in Tunisia. Beach holidays dominate the reasons for visiting the country and demand is concentrated into the high season (April to October accounted for 75% of all nights in 1990), with a smaller peak around Christmas and the New Year. Length of stay fluctuates throughout the year with longer holi- days being taken between July and September. Marked contrasts also ex- ist between different groups of Euro- pean visitors: for example, Germans have the highest average length of stay (13.5 days); French, the lowest, (8.6 days).

Occupancy rates for available tour- ist accommodation show few discerni- ble trends throughout the period 1962 to 1990 and have fluctuated between 40% and 62%. Overseas marketing by the Tunisian government has obvious- ly paid dividends and despite the rapid expansion of capacity, rates of occupa- tion for available accommodation were higher in the 1980s than those registered in the 1970s. There are,

Tourism and national development

Tourism has played an increasingly significant role in the Tunisian eco- nomy over the past 10 years. In con- trast to the 1970s when the country benefited from rapidly rising oil prices, the 1980s were characterized by deteriorating terms of trade and declining petroleum reserves. The ris- ing levels of external debt with the ratio of debt service to exports doub- ling from 14% to 28% in 1986 have enhanced the financial importance of the tourist industry to national de- velopment. In addition, stagnation in the agricultural sector and escalating unemployment among Tunisia’s pre- dominantly young population have underlined the importance of tourism as a major employer.’

Figure 3 illustrates the growth in receipts from tourism since 1962. A period of steady growth during the

*Ooo 1 n Balance of payments defictt

Year

Figure 3. Receipts from tourism and contributions to balance of payments deficit, 1970-91.

TOURISM MANAGEMENT September 1992 333

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Reports

- Receipts from tourism TD x 106 c cl

--- Direct employment

x 1200 50 ST

g 1000 I ,,’ v--

G

.$ 800 1 I

_/- <I ,I- 40 E

e 600 ,_-=

g 400

d

33 E

,’ 0”

I’ 20 2

t I’ 2 200 ,/’ .a 8 0’

IO ; _-’ L?

0

Figure 4. Receipts from tourism and employment generation, 1962-91.

Source: ONTT.

1970s and 1980s was followed by a rapid increase in 1987 when tourism became Tunisia’s premier generator of foreign exchange accounting for 32% of all overseas earnings. Since that date, earnings from tourism have be- come more volatile; the momentum of 1988 has been impossible to maintain and tourism accounted for less than 20% of all foreign exchange earnings

in 1990. The 1991 figures show a further sharp decrease owing to the effects on visitor numbers of the poli- tical crisis in the Gulf. Unfortunately, the downturn has occurred at a time of heavy investment in the tourist indus- try, some of which has been borrowed from overseas. It has also coincided with a widening trade deficit which, until the Middle East crisis, was main- ly offset by earnings from tourism

(Figure 3). In addition to its financial role,

tourism is a major employment genrr- ator in Tunisia. Fifty-one percent of the Tunisian population are under 20 years of age and job creation is a major aim of -the Seventh National Development Plan. Direct employ- ment in the tourist industry has grown steadily over the past 20 years, main- taining a consistent hotel bed to en- ployee ratio of just under 3:l. The Gulf crisis has had little impact on new employment and the target of creating 7000 permanent jobs during the Seventh Plan period has been es- ceeded. Tourism has made an even greater contribution to indirect em- ployment through the multiplier effect in agriculture, services (especially

334

transport), entertainment and craft in- dustries. Many of these jobs, such as crafts and petty trading, fall within the urban informal sector and thus are difficult to quantify. Exact figures are disputed, but it is estimated that in- direct employment exceeds direct job creation by a factor of four to one.’ Such statistics, however, must be in- terpreted with caution since marked seasonality is a feature of the Tunisian tourist industry and large numbers of both the formal and informal sector workers are unemployed during the low season.

National planning of the tourism sector has also encompassed the train- ing of a skilled workforce. Govern- ment hotel schools have been estab- lished in the major regions to provide a graded range of training program- mes from basic practical skills to high level management courses. These schools have ensured an adequate supply of suitably qualified Tunisians demanded by the expansion of the hotel sector. During the Seventh Plan period a new training ccntre for 250 students has been opened at Monastir, which brings the number of student training places in Tunisia to 1750. Moreover, since 1987, training schemes have been extended to in- clude indirect employment, especially in traditional craft industries which have become heavily dependent on the tourist industry.

Diversification and regional development

Meeting the expansion targets laid down in the Seventh Plan period have involved both diversification and re- gional development of the tourist in- dustry. For tourism planning and in- vestment purposes, Tunisia is divided into seven regions, each of which has growth targets determined by the national development plan. Figure 5 illustrates the regional growth in hotel capacity since 1981 and emphasizes the importance of the coast-based in- dustry. Table 4 demonstrates other regional contrasts including employ- ment and the lower occupancy rates outside the major coastal resort areas. It also highlights the problems associ- ated with overnight excursions to the

Sahara which result in low average lengths of stay in the Gafsa-Tozeur region.

Diversification which ‘enriches the tourist product’ has been the key to regional policies for the tourist indus- try. Accepting that major coastal re- sort areas will continue to depend on mass tourism, policies have been initi- ated to both develop new sites and to attract a wider range of clientele, especially higher-spending visitors. Such policies have included the de- velopment of integrated tourism com- plexes of which Port-el-Kantaoui, Sousse-Nord, is the best example. Established on a 300 ha ‘greenfield’ site 5 km to the north of Sousse the project, which was begun in 1979, reached its final development phase in March 1989. When complete, accom- modation will consist of 13 000 beds in 14 hotels of 3-star quality or above and 845 apartments. The complex also in- cludes a marina with 350 moorings, a base for flotilla sailing, restaurants and a variety of sporting activities. The investment in a high-quality golf course has paid dividends and Tunisia is establishing itself on the internation- al golf circuit. While the hotels have all been developed using private capit- al, the Tunisian government has been responsible for approximately half the investment in the apartments and the central facilities with a further third being attracted from other Arab states. European management exper- tise has been brought in to oversee the complex and to supplement Tunisian senior staff in hotels such as the 4-star de Luxe Hannibal Palace which was initially managed by the British com- pany Forte plc. Evidence of the SLIC-

cess of the scheme is provided by the occupancy rates: by 1989 nearly 70% of all available bed nights in hotels were occupied compared with a national average of 58%. In addition, apartments for sale had attracted overseas buyers from a number of European and Middle Eastern countries.”

Elsewhere, a smaller marina com- plex at Cap Monastir offers a similar mix of accommodation linked with international conference facilities.“’ Plans exist to create a further complex on the island of Jerba and to extend

TOURISM MANAGEMENT September 1992

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I r’

/.-’

-...

1

i i i

j / i m Main tourist areas

@ international airports !,

Integrated tourism i

complexes: i- i

n Completed ‘L. .’

0 Planned ./ !

W-a Chaine hoteWe ! caravanesbrail )

--$f . Tabarka

Tourism Regions

1. Tunis - Zaghouan 2. Bizerte - Tabarka 3. Nabeul- Hammamet 4. Sousse Kairouan 5. Monastir - Sfax

.,

‘\ 6. Jerba - Zarzis \ 7. Gafsa - Tozeur !

--

-

.Gafsa

7

-_ ‘. Kebili

\

‘& DOUZ

_--_

I I I I I I 0

6

Figure 5. Location of the main tourism developments in Tunisia.

the Monastir-Sousse belt with a de- veiopment at Hergla, north of Port-el- Kantaoui. However, the largest ex- pansion is planned for the unde- veloped northern Mediterranean coast. Integrated complexes are prop- osed for Tabarka and Bizerte, served by a new international airport at Tabarka, and thus initiating the de-

velopment of Tunisia’s ‘coral coast’ (Figure 5).

In parallel with these developments, ‘enriching the tourist product’ has placed great emphasis on developing southern Tunisia where an arid en- vironment and a distinctive culture offer a unique tourist experience. Since 1989 the Gafsa-Tozeur region

Table 4. Regional contrasts in the tourism industry, 1990.

Tourism indicator Total nights Mean length Occupancy residence of stay rates

Tourism region (000s) W) (days) W) Tunis-Zaghouan 1884 9 3.0 38.4 Bizerte-Tabarka 282 2 5.7 41.5 NabeuCHammamet 5675 28 9.8 56.8 Sousse-Kairouan 4987 25 9.0 58.6 Monastir-Sfax 3156 16 7.2 59.4 Jerba-Zarzis 3476 17 6.6 55.2 Gafsa-Tozeur 556 3 1.1 40.7

Source: ONTT.

Direct employment (000s) (“h)

6.1 13 2.0 4

12.9 28 9.9 21 6.7 14 7.8 17 12 3

TOURISM MANAGEMENT September 1992 335

Reports

has received a level of investment above that allocated by the Seventh National Development Plan. In addi- tion, a government decree of January 1991 specified outlhne management plans for Saharan tourism and announced the provision of state sup- port for feasibility studies undertaken by the private sector.” Road access to the region is being improved, while the up-grading of Tozeur airport to international standards allowed the in- auguration of the first direct flight to Europe (to Paris) in October 1990. Increased hotel accommodation at the oasis town of Tozeur is allowing it to function as a centre for specialized excursions by 4-wheel drive vehicles into the Sahara. Cultural interests are being promoted through the develop- ment of festivals such as the ‘Festival du Sahare’ at Douz.‘” In 1989 a TD 15 million project was initiated to create a ‘Chaine Hotel&e Caravaneserail’ throughout southern Tunisia (Figure 5). When complete, this scheme will provide overseas visitors with an inte- grated tour including the Sahara, the oasis towns surrounding the Chott el Jerid and the mountain oasis of Tamerza.” Overall, the aim is to per- suade the more discerning tourist to spend several days in the region and to provide diversification from the more conventional beach holiday. There is some evidence that this policy is be- ginning to pay dividends: while total nights in residence declined nationally by 3% between 1988 and 1990, the Tozeur-Gafsa region recorded a 33% increase.

Conclusion

Over a 30 year period, Tunisia has become a major centre for interna- tional tourism. Although growth has depended mainly on private sector investment, the Tunisian government has become increasingly responsible for determining this expansion within the framework of national develop- ment planning. Realistic targets for growth have been accompanied by a commitment to plan implementation. As a result tourism is now a leading sector in the Tunisian economy. Cal- laboration between the private and public sectors has brought many

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Reports

advantages: the government has pro- vided much of the basic infrastructure and employment training facilities; overseas private investment has been encouraged; and high standards have been imposed through strict govern- ment controls.

However, the Tunisian government has had to contend with external cir- cumstances which have had an over- riding impact on the development of the international tourist trade. For example, growth rates set in the Sixth National Development Plan (1982-86) were not met because of economic recession in Europe. More recently, political events in the Middle East and the downturn in the world’s tourist trade have caused a reversal of up- wards trends in the latter part of the Seventh Plan period. Nevertheless, the Tunisian government is committed to the further expansion of tourism as a major priority in national develop- ment planning. Given favourable ex- ternal circumstances, this should en- sure tourism’s continued growth in Tunisia throughout the 1990s.

Robert Gant, Principal Lecturer, and Jo& Smith, Senior Lecturer,

School of Geography, Kingston University, Penrhyn Road,

Kingston-upon-Thames, Surrey KT1 2EE, UK

‘M. Westlake, ‘Riding the tourist boom, South, August 1989, pp 12-l 7. ‘D. Pearce, Tourism Development, Long- man, Harlow, UK, 1989; L Likorish, De-

veloping Tourism Destinations, Longman, Harlow. 1991: and M.T. Sinclair and M. Stabler; The ?ourism Industry: An Interna- tional Analysis, CAB International, 1991. 3H.D. Nelson, ed, Tunisia: a Country Study, Foreign Area Studies, The Amer- ican University, Washington, 1986; and Ministry of information, November 7: National Consensus, Republic of Tunisia, Tunis, 1988. 4Minist&e de L’lndustrie et du Commerce, Le Tourisme: Le Septidme Ran, Republi- que Tunisienne, Tunis, 1987; and ‘Le tourisme en 1991 ‘, Information Touristi- que, February 1987, pp 17-28. 5K.J. Perkins, Crossroads of the Islamic and European World, Croom Helm, Beck- enham, UK, 1986. ‘Office National du Tourisme Tunisien, Le Tourisme en Chiffres, Republique Tuni- sienne, Tunis, published annually. 7Economist Intelligence Unit, Tunisia: Country Profile, EIU, London, 1987; and T.K. Morrison, ‘Tunisia’s four-year-old re- form plan produces remarkable turn- around’, IMF Survey, 18 June, 1990, pp 178-181. ‘M. Jedidi, Croissance Economique et Esoace Urbain dans le Sahel Tunisien de& L ‘Independance, L’Universitb de Tunis, Tunis, 1986. ‘Personal communication from Soci& d’Etudes et de DBveloppement de Sousse-Nord. “‘Cap Monastir: a modern marina’, La Gazette Touristique de Tunisie, December 1988, p 22. “‘DBtermination des regions sahariennes et modalit& d’attribution de la subvention d’btudes’, L ‘Hebdo Touristique, No 178, 1991, p 14. “‘Plan d’amknagement des zones touris- tiques Sahariennes’, L’Hebdo Touristique, No 35, 1987, pp l-2. ‘3’Tourisme Saharien: Une caravane sur les rails’, L’Hebdo Touristique, No 107, 1989, pp l-2.

Review of tourism in the USA International tourism has emerged as the USA’s second largest foreign exchange earner. This paper examines the dynamics of the USA s major tourist markets. Furthermore, it offers marketing tips on how US tourism firms and government can improve the country’s marketing competitiveness by interna- tionalizing their operations in order to improve their share of the international tourism industry to its fullest potential.

‘Most people think of America as the land green fields to sandy White beaches to red

of freedom, but to those who have visited hot Dixieland jazz. You’ll find Great Lahcs

here it’s also a place of beauty, wonder and and a Grand Canyon. But wherever you excitement. From New York City to the go, from Maine to Texas, from the Atlantic

Hawaiian Islands, you’ll see our culture. Ocean to the Pacific Coast, most of all

our sense of history, our sense of humor. you’ll find the friendliest people in some

America is a land of contrasts, from roiling very interesting places. Today there are

TOURISM MAF!AGEMENT September 1992

more reasons than ever to visit America,

and there’s never been a better time than

now. So what are you waiting for. an

invitation from the President! America is

yours to discover.’

George Bush

Prrsidrni of t/w United Stuter Tar of President’s wlcorne rmncrgt to

intermrtionul tourists

Visits by international tourists to the USA comprise a bright spot in its international trading account. Interna- tional tourism has emerged as the source of the second largest amount of foreign exchange earnings for the USA (Table 1). Because of its enor- mous foreign exchange earning poten- tial, it could be called the nation’s second best export revenue earner (next only to the sale of aeroplanes

and machinery). The USA’s success story in the

marketing of its international tourism is evident in its first place ranking- for five consecutive years - among nations of the world in international travel receipts.’ The USA garnered nearly 17.5% of total international tourism spending globally in 1990. Positioned with the world’s top tourism destina- tions, the USA ranks second in inter- national tourist arrivals (nest to France), representing a 9% market share of the world’s tourist arrivals.’ International tourism is the largest export of the USA’s international trade in services.

The major beneficiaries of spending by international tourists in the USA have been the airlines, retailers marketing souvenirs and gifts and hotels/motels (see Table 2). The air- line industry, with $12.3 billion re- ceipts, was the leading beneficiary of international tourism in 1990. Interna- tional tourists, reflecting the fact that nine out of 10 engage in shopping for souvenirs and gifts while in the USA, spent nearly $12 billion for retail purchases in 1990. Shopping cxpendi- turc by international tourist5 directly supported about 129 000 jobs in retail establishments with ;I payroll of $1.7 billion.

The L!S hospitality industry is one of the few booming industries in spite

of the recession. One of the major factors responsible for its growth is the positive impact of the spending of well


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