Small business, world travel

Tourism in OECD Countries 2008: Trends, Policies and Globalisation
Did you know that 60% of international tourism takes place in the OECD area? Or that it accounts for between 2 and 12% of GDP in OECD countries and between 3 and 11% of employment? The tourism industry is an important economic activity, surpassing traditional sectors like agriculture in many countries. Should policymakers take note?
Tourism in OECD Countries 2008: Trends, Policies and Globalisation examines key trends, with an eye to meeting future challenges in this increasingly competitive industry. For instance, it looks at the effects of globalisation and the international travel and tourism industry on small and medium-sized enterprises (SMEs).The report analyses in close detail the nature of the global value chains in which tourism SMEs now operate and concludes that such businesses can benefit from globalisation through diligent use of networks and clusters, and by the adoption of IT. Using national case studies in countries such as Australia, Austria, Korea, Spain, Poland and Switzerland, the study shows how governments can work with SMEs in the tourism sector.
Furthermore, services trade liberalisation could play a role in fostering tourism growth in developing countries. The report shows that tourism may be one of the most interconnected service sectors in Brazil, India and Indonesia.However, additional case studies in Cambodia, India, Madagascar, Mozambique and South Africa indicate that the growth of tourism may be undermined where the most important service sectors, such as transport, infrastructure, electricity, water or education, are lacking or expensive. Given this cross-sectoral nature of tourism, the report urges governments to establish policies that improve the business environment per se and address social and physical constraints, in order to enhance the vitality, sustainability and competitiveness of an industry that is one of the hallmarks of globalisation.

ISBN 9789264039674
©OECD Observer No 264/265, December 2007-January 2008

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