The Gambian Tourist Value Chain and Prospects for Pro-Poor Tourism

Tourism in The Gambia: International ‘Best Practice’ in Poverty Reduction & Pro-Poor Growth Through Tourism
Draft Report (Friday 22 nd December 2006)
2 Tourism and Poverty
The potential for tourism to accelerate economic growth and reduce poverty in many poor
countries is gaining recognition. However, the negative impacts associated with tourism,
such as reduced access to resources and negative social and cultural impacts 13 , sometimes
threaten to overshadow the benefits that a vibrant tourism industry can generate.
Box 1: Advantages of Tourism in Delivering Pro-Poor Growth
• It is generally labour-intensive - although less than agriculture - and therefore can
impact on a large number of lives through the labour market;
• Tourism has considerable potential linkage especially with agriculture and fisheries,
which can minimize the leakage effect. Due to the high income elasticity of
demand for international tourism, it can offer a relatively rapidly growing market.
• Tourism provides opportunities for off-farm diversification, particularly in areas
that do not attract other types of development options;
• Tourism can provide poor countries with a significant export opportunities where
few other options are viable;
• It may create initial demand for a good or service that can itself develop into a
growth sector;
• Tourism products can generate demand for assets such as natural resources and
culture, to which the poor often have access;
• Tourism delivers consumers to the product rather than the other way around; and
• Infrastructure associated with tourism development can provide essential services
for rural communities.
Source: Pro-Poor Tourism Working Paper No. 16. March 2004. pp 12-13.
2.1 The Economic Significance of Tourism
Like most economic activities, international tourism is concentrated in the rich countries.
However, in 2004 about one-third of international tourists arrived in a developing country.
In the developing world, middle income countries capture the lions share of the
international tourist market – although about 8% of international arrivals are in the poorest
or Least Developed Countries (LDCs).
Whilst small in terms of global share of the international tourism market, tourism has a
disproportionate economic impact on very poor countries as Table 1 illustrates. Ironically,
international tourism is often the primary export sector in many of the poorest countries in
the world, with tourism generating significant export earnings for up to 80% of the 50 LDC 14 .
The Gambia demonstrates a heavy reliance on tourism, even with comparatively low arrival
numbers to other LDCs examined.
13 Pro-Poor Tourism Info-Sheet 3: Tourism and Poverty Reduction – Making the Links re PPT Partnership
14 Roe, D., Ashley, C., Page, S. and Meyer, D. (2004) “Tourism and the Poor: Analysing and Interpreting
Tourism Statistics from a Poverty Perspective” Pro-Poor Tourism Partnership Working Paper No 16. PPT
Partnership
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