1. Repercussions of the global economic slowdown on tourism.

The latest edition of the United Nations World Tourism Organization (UNWTO) World Tourism Barometer confirms the rapid slowdown of international tourism growth since mid-2008, reflecting the impact of rising oil prices at the beginning of the year and the deterioration of the economic situation, as well as of consumer confidence, in recent months. Overall growth for 2008, however, is still projected at around 2 percent, building on the strong results of the first five months. UNWTOs Resilience Committee will support its members with accurate economic analysis and response mechanisms. The tourism sectors effective response to the economic downturn was discussed at the Global Ministers Summi t at World Travel Market on November 11. A series of regional response groups will follow, starting in the Middle East (Sharm el Sheikh, Egypt, 23-24 November). After a sound start to the year (international tourist arrivals worldwide averaged 5.7 percent from January-April), growth fell below 2 percent in June, July and August as the high price of oil and rising inflation took their toll and, together with recession fears, squeezed travel budgets. For the first eight months of 2008, growth averaged 3.7 percent compared with the same period in 2007, while for the year as a whole it is now projected to be around 2 percent globally. As the current troubled economic scenario is expected to continue into 2009, UNWTOs initial forecast for next year is for an even more modest performance. Asia and the Pacific was the region whose growth has deteriorated most rapidly so far, after 18 consecutive months of sustained growth, declining from March onwards and even sliding into negative growth in August. Growth in Europe also stagnated over the northern hemisphere summer months. The Americas, Africa and the Middle East weakened as well, but the slowdown was much less pronounced. Although regional trends may vary as new data becomes available, the Barometer identifies the following regional trends: Europe currently stands at +2 percent for the first eight months of 2008 (well down from the 5 percent growth of the last two years), and the slowdown has not spared any of its four sub-regions. Asia and the Pacifics growth (+4 percent) is also well behind its 2007 level, with Oceania and North-East Asia suffering the brunt of the downturn in demand. The Americas has so far performed better than in 2007 with +6 percent through the first eight months. The region appears to have only experienced a modest slowdown in July and August. The Middle East is once again the star performer in 2008 so far, with growth for the period January through August estimated at 17 percent. Data is still limited, though, which may lead to the need for a revision of this estimate. Africas growth is currently running at less than half the level achieved in 2007, largely thanks to North Africas strong performance since the average growth in Sub -Saharan Africa has fallen significantly over its 2007 level.

Prospects Including the month of August, 23 million additional arrivals have been counted in 2008 so far, bringing the total to 642 million international tourist arrivals. But much of the growth for the period JanuaryAugust reflects the situation before the beginning of the slowdown a steady increase worldwide, which even reached 7 percent in May. The growth in international tourist arrivals fell to less than 2 percent in June, and to just 1 percent in the peak travel months of July and August, highlighting the time when energy prices, inflation and the credit crunch started to have a real impact on travel and tourism demand. The economic downturn, combined with the current uncertainties, extreme market volatility and a decline in both consumer and business confidence, are expected to continue taking their toll on demand for tourism at least in the short to medium term: Many businesses are expected to retrench, and any such retrenchment will be quickly felt in consumer markets. Given the current stress on many companies balance sheets, business travel is also expected to be more adversely impacted than the leisure segment. Unlike previous crises such as with 9/11 and SARS, the current downturn does not affect the desire to travel. The major concern is about whether one can afford to travel, or whether one wants to spend money on travel given the uncertain economic situation. So far international tourism has resisted the downturn better than other economic sectors such as construction, real estate or car manufacturing. As in previous crisis situations: Travel to destinations closer to home, including domestic travel, is expected to be preferred to long-haul travel; Segments such as visiting friends and relatives (VFR), repeat visitors, as well as special interest and independent travelers are expected to be more resilient; The decline in average length of stay, as well as in expenditure, is projected to be more pronounced than the fall in arrivals. Meanwhile, the report stated that destinations offering value for money and with favorable exchange rates have an advantage as price becomes a key issue. Companies will, and should, concentrate on containment of cost in order to keep their competitive edge; It is more necessary than ever to work closely together in the tourism value chain i.e. the public with the private sector, and destinations with the travel trade. The UNWTO Barometer stresses that the anticipated softening of international tourism growth in 2008, and again in 2009, follows four historically strong years. Between 2004 and 2007 international tourist arrivals grew at the extraordinary rate of 7 percent a year, well above the 4 percent long-term average. 2. Commodification Tourism can turn local cultures into commodities when religious rituals, traditional ethnic rites and festivals are reduced and sanitized to conform to tourist expectations, resulting in what has been called "reconstructed ethnicity." Once a destination is sold as a tourism product, and the tourism demand for souvenirs, arts, entertainment and other commodities begins to exert influence, basic changes in human values may occur. Sacred sites and objects may not be respected when they are perceived as goods to trade.

3. Standardization Destinations risk standardization in the process of satisfying tourists' desires for familiar facilities. While landscape, accommodation, food and drinks, etc., must meet the tourists' desire for the new and unfamiliar, they must at the same time not be too new or strange because few tourists are actually looking for completely new things. Tourists often look for recognizable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. 4. Loss of authenticity and staged authenticity Adapting cultural expressions and manifestations to the tastes of tourists or even performing shows as if they were "real life" constitutes "staged authenticity". As long as tourists just want a glimpse of the local atmosphere, a quick glance at local life, without any knowledge or even interest, staging will be inevitable. 5. Adaptation to tourist demands Tourists want souvenirs, arts, crafts, and cultural manifestations, and in many tourist destinations, craftsmen have responded to the growing demand, and have made changes in design of their products to bring them more in line with the new customers' tastes. While the interest shown by tourists also contributes to the sense of self-worth of the artists, and helps conserve a cultural tradition, cultural erosion may occur due to the commodification of cultural goods.

Creating molas, which are the blouses worn by Kuna women in Colombia, is an art that began with designs that reflected the conception of the world, of nature, and of the spiritual life of the Kuna Nation. Now it is increasingly being transformed, through tourism, into a commercial trade which causes loss of its spiritual value and quality. This is changing the designs of the molas to correspond to the interests of the tourists, while at the same time the Kuna women are losing their knowledge of the old designs and the interpretations and meanings of the mola designs.

6. Economic inequality Many tourists come from societies with different consumption patterns and lifestyles than what is current at the destination, seeking pleasure, spending large amounts of money and sometimes behaving in ways that even they would not accept at home. One effect is that local people that come in contact with these tourists may develop a sort of copying behavior, as they want to live and behave in the same way. Especially in less developed countries, there is likely to be a growing distinction between the 'haves' and 'have-nots', which may increase social and sometimes ethnic tensions. In resorts in destination countries such as Jamaica, Indonesia or Brazil, tourism employees with average yearly salaries of US$ 1,200 to 3,000 spend their working hours in close contact with guests whose yearly income is well over US$ 80,000.

7. Irritation due to tourist behavior Tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. When they do, they can bring about irritation and stereotyping. They take a quick snapshot and are gone, and by so acting invade the local peoples' lives.

In many Muslim countries, strict standards exist regarding the appearance and behaviour of Muslim women, who must carefully cover themselves in public. Tourists in these countries often disregard or are unaware of these standards, ignoring the prevalent dress code, appearing half-dressed (by local

standards) in revealing shorts, skirts or even bikinis, sunbathing topless at the beach or consuming large quantities of alcohol openly. Besides creating ill-will, this kind of behavior can be an incentive for locals not to respect their own traditions and religion anymore, leading to tensions within the local community. The same types of culture clashes happen in conservative Christian communities in Polynesia, the Caribbean and the Mediterranean.

8. Job level friction In developing countries especially, many jobs occupied by local people in the tourist industry are at a lower level, such as housemaids, waiters, gardeners and other practical work, while higherpaying and more prestigious managerial jobs go to foreigners or "urbanized" nationals. Due to a lack of professional training, as well as to the influence of hotel or restaurant chains at the destination, people with the know-how needed to perform higher level jobs are often attracted from other countries. This may cause friction and irritation and increases the gap between the cultures. Even in cases where tourism "works", in the sense that it improves local economies and the earning power of local individuals, it cannot solve all local social or economic problems. Sometimes it substitutes new problems for old ones. Income Inequality in Taman Negara National Park, Malaysia

In Western Malaysia, the Taman Negara National Park is a privately owned park and resort which can house 260 visitors at a time. The park employs 270 people and 60% of the staff in the administrative headquarters are locals. In 1999 these local staff earned about US$ 120 a month; for comparison, Malaysians living off the land at that time were earning on average about US$ 40 a month. Despite the positive effects of increased park employment, the difference in income between the two local groups has led to social tension and driven up boat fares and the cost of everyday goods. Little of the tourism money generated by the park stays in Malaysia, and park employees spend almost 90% of their income outside the region or on imported goods. Thus local inhabitants, whose culture has been marketed to attract tourists, benefit only to a very limited extent. Indeed, many have taken to illegal hunting and fishing in the park, contrary to its protective regulations.

9. Resource use conflicts, such as competition between tourism and local populations for the use of prime resources like water and energy because of scarce supply. Stress to local communities can also result from environmental degradation and increased infrastructure costs for the local community - for example, higher taxes to pay for improvements to the water supply or sanitation facilities. 10. Cultural deterioration. Damage to cultural resources may arise from vandalism, littering, pilferage and illegal removal of cultural heritage items. A common problem at archaeological sites in countries such as Egypt, Colombia, Mexico and Peru is that poorly paid guards supplement their income by selling artifacts to tourists. Furthermore, degradation of cultural sites may occur when historic sites and buildings are unprotected and the traditionally built environment is replaced or virtually disappears. 11. Conflicts with traditional land-uses, especially in intensely exploited areas such as coastal zones, which are popular for their beaches and islands. Conflicts arise when the choice has to be made between development of the land for tourist facilities or infrastructure and local

traditional land-use. The indigenous population of such destinations is frequently the loser in the contest for these resources as the economic value which tourism brings often counts for more. As an example of how local people can suffer from tourism development, in coastal areas construction of shoreline hotels and tourist faculties often cuts off access for the locals to traditional fishing ground and even recreational use of the areas.

Depriving local people of access

There are numerous examples where local residents have lost access to local natural resources because of tourism development. On Boracay Island in the Philippines, one quarter of the island has been bought by outside corporations, generating a crisis in water supply and only limited infrastructure benefits for residents. Similarly, in Bali, Indonesia, prime agricultural land and water supplies have been diverted for large hotels and golf courses, while at Pangandaran (Java, Indonesia), village beach land, traditionally used for grazing, repairing boats and nets, and festivals, was sold to entrepreneurs for construction of a five-star hotel (Shah, 2000).

12. Crime generation Crime rates typically increase with the growth and urbanization of an area, and growth of mass tourism is often accompanied by increased crime. The presence of a large number of tourists with a lot of money to spend, and often carrying valuables such as cameras and jewelry, increases the attraction for criminals and brings with it activities like robbery and drug dealing. Repression of these phenomena often exacerbates social tension. In Rio de Janeiro, Brazil, tourists staying in beachside five star resorts close to extremely poor communities in hillside "favelas" (shantytowns) are at risk of pickpockets and stick-ups. Security agents, often armed with machine guns, stand guard nearby in full sight, and face aggressive reactions from locals who are often their neighbors when they go home. Tourism can also drive the development of gambling, which may cause negative changes in social behavior. 13. Child labour ILO studies show that many jobs in the tourism sector have working and employment conditions that leave much to be desired: long hours, unstable employment, low pay, little training and poor chances for qualification. In addition, recent developments in the travel and tourism trade (liberalization, competition, concentration, drop in travel fares, growth of subcontracting) and introduction of new technologies seem to reinforce the trend towards more precarious, flexible employment conditions. For many such jobs young children are recruited, as they are cheap and flexible employees.

An estimated 13-19 million children and young people below 18 years of age (10-15 per cent of all employees in tourism) are employed in the industry worldwide. However, these figures take no account of the number of children working in the informal sector in ancillary activities. Child labour in tourism is common in both developing and in developed countries. Many boys and girls below 12 years of age are engaged in small business activities related to hotels and restaurants, the entertainment sector or the souvenir trade, often as porters or street or beach vendors. They are frequently subjected to harsh working and employment conditions.

14. Prostitution and sex tourism The commercial sexual exploitation of children and young women has paralleled the growth of

tourism in many parts of the world. Though tourism is not the cause of sexual exploitation, it provides easy access to it. Tourism also brings consumerism to many parts of the world previously denied access to luxury commodities and services. The lure of this easy money has caused many young people, including children, to trade their bodies in exchange for T-shirts, personal stereos, bikes and even air tickets out of the country. In other situations children are trafficked into the brothels on the margins of the tourist areas and sold into sex slavery, very rarely earning enough money to escape.

15. Tourism is a highly taxed industry. Few people, outside of the tourism and travel industry, realize just how many taxes travelers pay. Look at the percentage of taxes paid on an airline ticket, a hotel room, or a rental car. In some locales (be that local a country, city, state or province) almost 40% of the commoditys cost comes from add-on taxes. When government officials claim that they must provide additional protection services to non-residents they often fail to take into account just how much money non-residents add to a local economy not only through purchases but also through the payment of taxes. 16. Global standardization has produced less unique locales . The globalized marketplace means that often the same products are available throughout the world. If part of the reason for travel is to learn about or have the opportunity to explore the unique and different, then the sameness factor is a major tourism challenge. For example, shopping malls around the world often seem to offer the same products and many travelers find hotels to be so standardized that they almost forget in what county the hotel is located. 17. Tourism and travel are highly dependent on the cost of fuel. The recent rise in the price of fuel such as gasoline has a major impact on the entire industry. Summer is the high season for travel and with the cost of gasoline on the rise, many travelers may have to adjust their spending (or vacation length) in order to pay for additional fuel charges. Those locales that are taking this challenge into account and seeking creative solutions will be the ones best prepared to overcome this challenge 18. The wireless communications world means that one can be there without being there. The new world of telecommunication can offer many advantages to both the traveler and to the travel industry. However, it also means that leisure travelers no longer are simply on vacation. Instead they expect to be connected to business and family at all times. In a like manner, when word-of-mouth combines with telecommunication, then publicity, news stories and events are spread instantaneously throughout the world. The telecommunications revolution also means that business meetings may be conducted on-line or via satellite rather than face to face and may eliminate the need for many business trips. Finally, the telecommunications revolution means that virtual reality often replaces classical reality. No longer can just one city lay claim to an attraction when other cities can reproduce the same attraction in a virtual state.

19. Health issues such as pandemics that can easily cause tourism panics. Not only can a drop in water quality (purity) become a major tourism issue, but also the industry must face the reality of pandemics and/or pandemic scares. The SARS scare ought to have reminded the travel industry that a few media stories can wreak havoc on the tourism industrys viability. In a like manner, a nervous public may connect a health event with a potential act of terrorism. The anthrax episodes in Washington, DC are an example of how a nervous public may cease to visit a locale due to health related safety issues. 20. Political conditions will continue to be a challenge for the tourism industry. On the international front, tourism will continue to have to deal with an ever more complicated and confusing political reality. For example, despite governments claiming that they support tourism, visa restrictions have become more complicated. Furthermore, no nation seems to be immune from street demonstrations, politically motivated riots, acts of terrorism, wars or bureaucratic red tape. These circumstances not only give negative publicity to the host locale, but also make travel more difficult and less appealing. 21. Travel stress brought about by poor travel conditions. Few today would disagree that while still romantic, travel is no longer stress-free. Not only is air travel increasingly difficult but other forms of transportation are no longer hassle free. All forms of the travel and tourism industry have placed greater restrictions on what they offer and many have raised prices. Along with these restrictions, many parts of the industry suffer from either limited personnel or poor customer service. So far these stresses have not caused a decrease in travel, but the potential for such a turndown is very present

22. Lack of proper infrastructure. Infrastructure needs for the travel and tourism industry range from physical infrastructure such as ports of entry to modes of transport to urban infrastructure such as access roads, electricity, water supply, sewerage and telecommunication. The sectors related to the travel and tourism industry include airlines, surface transport, accommodation (hotels), and infrastructure and facilitation systems, among others.