Travel Reference
In-Depth Information
under flags of convenience taking advantage of fewer regulations. Brohman
(1996a: 51) suggests that 'serving as a centre piece for the neoliberal strategy
of outward-oriented development in many countries is the promotion of new
growth sectors such as tourism or nontraditional exports (NTEs)'. In the race
to attract international investors to open tourism businesses such as hotels,
destination governments compete against each other offering attractive
investment incentives. In 1980, the government of Turkey shifted its policies
towards the private sector and passed The Foreign Investment Law allowing
up to 100% foreign investment in projects or joint ventures with Turkish
development banks and companies. The Tourism Encouragement Act of
1982 provided similar encouragement for investment in tourism (Inskeep,
1991). Today, Dubai which is well known for its iconic tourism-related infra-
structure, such as the Palm Islands, is an example of a destination actively
promoting tourism through investment incentives in the Jebel Ali Free Zone
and Airport Free Zone, which includes 100% foreign ownership and control,
renewable 15-year guarantee of no taxation, no customs duties, flexible
investment opportunities and more (Dubai Department of Tourism and
Commence Marketing, 2014). In a related strategy, outsourcing has also
increased in the tourism industry (e.g. catering, ticket booking, and so on:
see Chapter 10) allowing the industry to take advantage of lower costs and
efficiencies. In economic neoliberalism, there is an emphasis on privatisation
with the integration of markets. The UN World Tourism Organisation
(UNWTO) also highlighted the importance of the international monetary
markets for tourism in their study on the impact of the Euro on tourism.
This study noted that the Euro will have a direct effect on the business envi-
ronment for tourism by eliminating exchange rate fluctuations, guaranteeing
price stability and making prices across borders denominated by a single
currency, all of which will increase market transparency (WTO, 1998a).
Tourism is an export industry and a wide range of international aid agen-
cies has provided funding to develop tourism plans and tourism infrastruc-
ture (see Hawkins & Mann, 2007). These loans were increased starting in
the 1960s (Diamond, 1977). The European Union (EU), for example, has pro-
vided assistance to developing countries in the following areas: infrastruc-
ture, human resources, product and market development, preservation of
resources and strategy development. More concretely, the EU provided fund-
ing to ACP (Africa, Caribbean, and Pacific) countries under the Lome Con-
vention. Lome III (1986-1990) was the first to mention tourism extensively
under new chapters as an integral part of cooperation and trade services (Lee,
1987). The EU has also provided funding for tourism development through
the LEADER programme, which is explored in Chapter 5. International
funding for tourism started within the modernisation framework in the
1960s. The importance of tourism as an economic activity designed to earn
foreign exchange increased after the global shift towards economic neoliber-
alism. The World Bank has funded a range of tourism policy plans and
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