Tourism.

World tourism grew by an estimated 7.4% in 2000 -- its highest growth in nearly a decade and almost double the increase of 1999. Directly or indirectly, tourism is estimated to provide 245 million jobs and over US$ 5 trillion in economic activity worldwide, of which US$ 2.3 billion in 39 LDCs.

Leisure market changing

Leisure and recreation account for 62% of international tourism, with business-and-leisure trips accounting for 18%; the remaining 20% of international travelling is due to other motives, such as visiting friends and relatives, religious purposes/pilgrimages, health treatment, etc.

In addition, however, the market for leisure tourism is fragmenting into segments that include cultural tourism, eco-tourism and adventure sports. Nature travel, including eco-tourism, already accounts for over 10% of the market, and cultural tourism is the basis of Europe's tourism attraction. There are also important segments developing within the 'sun and sand' segment for families, the elderly and for incentive travel. Sports tourism, including golf, yachting and diving, is starting to represent a significant proportion of the leisure travel market in the United States, Europe and Japan.

The impact of e-trade

E-trade is having a profound effect on the tourism industry. Consumers have adopted online travel planning faster than any other online retail activity, and leisure travel bookings online are expected to exceed US$ 29 billion (or 12% of industry revenues) by 2003. Increasingly, tourist destinations are offering 'virtual reality' samplings online of the ambience and their tourism products, before consumers make a travel commitment. Consumers now expect not only to make destination selections online but also to make travel, accommodation and local transportation arrangements at the same web site.

Earnings 15% lower for LDCs

Data from the World Tourism Organization (WTO) for 1998, however, indicate that developing countries, including the LDCs, draw in only 53% of international tourism receipts though they account for approximately 61% of international tourist arrivals. Revenues per arrival averaged US$ 609 for developing countries, as compared with US$ 827 for developed market economies. For LDCs, the average receipts per arrival were US$ 502.

Of the LDCs, only the United Republic of Tanzania is a significant tourism destinalion, generating US$ 570 million in visitor expenditure. Cambodia, Nepal and Uganda are the only other LDCs to generate...