... your login credentials do not authorize you to access this content in the selected format. Access to this content in this format requires a current subscription or a prior purchase. Please select the WEB or READ option instead (if available). Or consider purchasing the publication.
In OECD countries, tourism is big business, directly accounting for 4.7% of GDP, 6%
of employment and 21% of exports of services.
International tourist arrivals surpassed 1 billion in 2012 and are forecast to reach
1.8 billion by 2030. OECD countries play a leading role in global tourism, accounting
for around 57% of international tourist arrivals and growing by 3.6% in 2012. Growth
in international arrivals to the OECD has slowed in recent years and countries are
losing market share.
Major emerging tourism economies are experiencing rapid tourism growth, outperforming
OECD and global averages and changing the structure of the global tourism market.
China in particular is a leading growth engine and this is expected to continue in
the coming years with the projected expansion of the Chinese economy.
Domestic tourism is very significant to the tourism economy and represents around
78% of tourism consumption in OECD countries. Together, domestic and international
tourism are capable of supporting employment and adding local value. Active tourism
policies are essential for advanced tourism economies to prosper in the global tourism
economy.
"OECD Tourism Trends and Policies 2014" provides an in‑depth analysis of tourism trends
and policy developments in 48 OECD member and partner countries. Based on a 2013 country
survey, the report highlights key reforms in tourism organisation and governance.
It also focuses on issues high on the national and international policy agenda, including
travel and visa facilitation as well as the evolving relationship between taxation
and tourism.
The role of government in tourism policy is evolving, with a greater focus on competitiveness,
value for money, and sustainable growth. Tourism policy is also becoming more complex,
with a wider range of policies influencing, and influenced by, tourism.
Countries are looking for ways to remain competitive and maximise the economic and
other benefits of tourism growth. Governments are looking to make travel as easy and
efficient as possible; the challenge is to encourage legitimate travellers while delivering
on economic, security and other national policy priorities.
The global financial and economic crisis has led to increased pressure on public budgets
supporting tourism development such as marketing, infrastructure and environmental
protection. Tourism taxation provides governments with funding to help support public
investment, but at the same time tax reductions can help stimulate tourism growth
Tourism policy priorities
Tourism policies and planning are becoming more country‑specific and taking a longer‑term
view. They are also more dynamic in nature, adjusting to decreasing budgets, shifts
in tourism markets and demographic change.
Countries are reforming tourism governance to better address complex inter‑ministerial
challenges. There is also a move to integrate tourism more into national economic
plans given its ability to create jobs, promote regional development, and generate
export revenue.
Countries are implementing new financing models and partnerships to relieve pressure
on tourism budgets and encourage a higher level of co‑operative or industry participation,
particularly in marketing activities. They are also increasing their scrutiny of National
Tourism Organisation activities, rationalising policy delivery functions and programmes,
and focusing more on source markets as well as new technologies and social media.
At the same time, there is a growing awareness of the importance of domestic tourism,
its ability to provide a stable source of revenue in uncertain times, as well as more
inclusive benefits through the promotion of social tourism, which is accessible to
all. Many countries are taking measures to stimulate the domestic market.
Travel facilitation, tourism and growth
G20 countries have recognised the role of travel and tourism as a vehicle for job
creation, economic growth and development and have committed to work towards developing
travel facilitation initiatives. In Europe, new estimates indicate that 6.6 million
travellers from six key target markets were lost due to the visa regime in 2012, equating
to EUR 5.5 billion in direct GDP contribution.
Governments have implemented a variety of approaches to facilitate travel, from streamlining
visa processing and changing visa requirements to introducing other forms of travel
authorisation and improving border processes such as evisa, visa on arrival, automated
border processing, and trusted traveller programmes.
Taxation and tourism
There has been a general increase in tourism‑related taxes, fees, and charges in recent
years, including those associated with air travel, those with an environmental focus,
and incentives for investment and spending.
The rationale for specific tourism‑related taxation varies from country to country.
Apart from contributing to general tax revenue and supporting public investment in
tourism development, other common purposes include: cost recovery for passenger processing
and environmental protection; encouraging visitor spending and job creation; and funding
promotional activities.
Many countries have introduced reduced rates of consumption tax for tourism‑related
activities – focusing primarily on hotels and restaurants – to boost tourism and stimulate
employment in the sector, or tourist/VAT refund schemes to encourage visitor spending.
Industry is concerned by the sheer number of levies payable by tourism operators,
what they see as regular increases above inflation and the lack of a clear link with
the cost of service delivery, which results in many taxes raising more than their
stated objectives.
The OECD will continue to work with countries to better understand how tourism‑related
taxation affects the international competitiveness and attractiveness of destinations.
Key recommendations
Greater coherence across government policies is needed to boost tourism and economic
growth. Policies such as innovation, transportation, taxation, service quality and
visas influence people’s desire to travel and the competitiveness of destinations.
Governments should focus more on evaluating the tourism policies, given the widespread
pressure on public finances in many countries. More detailed monitoring, evaluation
and analysis, of existing taxes and incentives for example, would give policy makers
the tools to implement evidence‑based policies to support the long‑term sustainable
growth of the tourism industry.
Governments and the tourism industry need to develop skills to keep pace with market
developments. Digital and social media require a major shift in approaches to marketing,
promotion and service delivery, including tailored marketing to individual consumers
and learning how to communicate with digitally‑aware tourists.
Closer alignment is needed between transport and tourism policy and sustainable energy
policies at national and international level, given the heavy reliance of tourism
on air travel and the risks associated with climate change
Measures that identify and facilitate high volume, low risk legitimate travellers
to move more freely and efficiently should be adopted, targeting constrained resources
where they are most needed to secure borders and meet economic, security and other
needs.