Over the past six decades, tourism has experienced continued expansion and diversification, through the emergence of new niche markets and outbound destinations, and has become one of the largest and fastest-growing economic sectors in the world. International tourist arrivals are expected to grow by 3.3% a year between 2010 and 2030, with arrivals in emerging destinations growing faster than those in advanced economies. Europe remains the largest tourism market worldwide, taking a total of 41% of international tourism receipts, with growth concentrated mainly in Southern and Mediterranean Europe, including South East Europe (SEE). Tourists’ demands are changing and new source markets are emerging. For instance, between 2005 and 2012, China has become the largest tourism source market in the world in terms of spending, overtaking Italy, Japan, France and the United Kingdom. New destinations are emerging beyond the traditional favourites of Europe and North America. Visitors are looking for more individual and authentic experiences and relying more heavily on technology to plan their trips. In addition, international image and recognition remain critically important for tourists when they choose a travel destination. A number of niche markets – natural and cultural tourism, adventure tourism and culinary tourism –are emerging. Governments are increasingly concentrating on identifying the strong points in what their countries have to offer visitors – particularly their cultural and natural heritage – and further enhancing them to maximise the impact of their investment in marketing and product development. In a time of economic turmoil, policy makers from SEE are faced with policy choices which will drive the region’s long-term competitiveness. To assist SEE partners in realising the high-growth potential of tourism, the OECD carried out a project co-funded by the European Union (EU), which brought together policy makers, industry experts, academics and regional organisations. This designation is without prejudice to positions on status, and is in line with United Nations Security Council Resolution 1244/99 and the Advisory Opinion of the International Court of Justice on Kosovo’s declaration of independence.4a dialogue to identify obstacles to competitiveness in the tourism sector and define policy options for reform. This Policy Handbook summarises the results of these exchanges and related research.