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Tunisia: Understanding Conflict 2012 - Johns Hopkins School of ...

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Boosting the Tourism Sector<br />

The tourism sector contracted sharply due to the recent revolution and it has not yet<br />

recovered due to the continued instability in the country. According to the Tourism<br />

Ministry, <strong>Tunisia</strong>’s tourism revenue declined by 39% in 2011 (Carey and Salama, 2011,<br />

2). Though the tourism sector only accounts for 6% <strong>of</strong> the economy, it makes up 12% <strong>of</strong><br />

<strong>Tunisia</strong>’s total employment and 20% <strong>of</strong> <strong>Tunisia</strong>’s exports. Thus, in terms <strong>of</strong><br />

employment, rebuilding the tourism sector will have a major impact. The most urgent<br />

barrier to rebuilding the tourism sector is the instability in the country, which has<br />

discouraged tourists from vacationing in <strong>Tunisia</strong>. When the government takes stronger<br />

measures to ensure that internal security issues are under control, there will be an<br />

accompanying rise in tourism. The other major issue is the government’s failure to take<br />

action on its proposals to develop the tourism sector. These proposals include enhancing<br />

tourist attractions in the interior regions <strong>of</strong> the country, focusing more on ecological,<br />

cultural and spa tourism, and improving visa processes. The tourism market in <strong>Tunisia</strong><br />

has a great deal <strong>of</strong> room for growth, and such growth will help to ease <strong>Tunisia</strong>’s<br />

unemployment levels.<br />

Growth <strong>of</strong> the Private Sector and Foreign Direct Investment<br />

Under the Ben Ali regime, corruption was a major hindrance to the growth <strong>of</strong> the private<br />

sector and foreign direct investment. Investors, both domestic and foreign, were deterred<br />

by the predatory practices <strong>of</strong> the Ben Ali and Trabelsi families. Anecdotes abound <strong>of</strong><br />

their practices, which <strong>of</strong>ten involved seizing or demanding cuts from pr<strong>of</strong>itable<br />

businesses. While this is currently less <strong>of</strong> a concern following the revolution, the interim<br />

government continues to face ongoing issues <strong>of</strong> corruption and clientelism. Currently,<br />

the greatest deterrence to domestic and foreign investment is the instability in the<br />

country. However, once the government gets the security situation under control, the<br />

next issues to be addressed are corruption and clientelism. The government can also<br />

address challenges such as poor access to credit, heavy “red tape,” and a burdensome<br />

regulatory framework.<br />

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