Institution of Local Self Governance and its Linkages with Tourism
Institution of Local Self Governance and its Linkages with Tourism
Institution of Local Self Governance and its Linkages with Tourism
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a) Cross-border supply <strong>of</strong> the service (i.e. booking tickets throughthe internet, )b) Consumption Abroad (i.e. the movement <strong>of</strong> the serviceconsumer i.e. the tou rist from the generating to the hostcountry) .c) Commercial presence (i.e a multilatera l corporation setting ahotel/resta urant/travel agency in the territory <strong>of</strong> another country).d) Cross- border movement <strong>of</strong> personnel/labour (e.g. movement <strong>of</strong>foreign managers/guid es/tourism pr<strong>of</strong>essionals from thegenerating to host country.)Another integral part <strong>of</strong> GATS schedu les, is the removal <strong>of</strong> limitationson tou rism service providers, regarding establishment, ownership,employment <strong>of</strong> personnel <strong>and</strong> re mittances'. In other words foreigncompanies will have free market access to domestic markets underthe same trading conditions, which exist for loca l companies <strong>of</strong> thehost country (i.e the principle <strong>of</strong> National treatment).It is important to note that, keeping the priorities <strong>and</strong> sensitivities <strong>of</strong>developing countries in mind, a section <strong>of</strong> the GATS addresss theneed to secure 'the increasing participation <strong>of</strong> developing countries inworld trade'. Accordingly, Member governments have been advisedto achieve this through the negotiation <strong>of</strong> 'specific market openingcommitments' in the following areas, namely: a) Strengthening thedomestic services capabilities <strong>of</strong> developing countries throughaccess to technology resou rces <strong>of</strong> the developed country on acommercial basis; b) improving access <strong>of</strong> developing cou ntries todistribution channels <strong>and</strong> information networks; c) freedom fordeveloping countries to deploy key <strong>and</strong> regular personnel in placeswhere they are supplying tourism services.GATS KEY CONCEPTS• Most Favoured Nation (MFN) Treatment (Article II) - Each membershall accord services <strong>and</strong> service suppliers <strong>of</strong> any other Membertreatment no less favourable than that it accords to like services <strong>and</strong>service suppliers <strong>of</strong> any other country. That is, a govemment must notdiscriminate between services or services suppliers <strong>of</strong> other members12
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