Table of Contents

  • Small states face a unique set of development challenges posed by their small size, narrow production and export bases, and susceptibility to climate change impacts. These factors infl uence and shape policy responses and the approach these countries take to address their sustainable development concerns. With over half of Commonwealth members comprising small developing states, the Commonwealth Secretariat has extensively researched their peculiar development challenges and helped countries explore the available opportunities for enhancing their development outcomes. Sustainable and inclusive economic growth is seen as an important plank in the strategy for achieving improved development outcomes for these countries. Due to their geographical location, the tourism sector in many of these countries plays a signifi cant role, contributing to economic activity including government revenue and employment.

  • Tourism is a key sector in most small island developing states and in many other small states, contributing to GDP, government revenue and employment. This report considers the effects of tourism as they work through the economy through the main channels, both direct and indirect. It examines land-based and cruise tourism, and explores how the local supply chain can be enhanced as part of an inclusive growth strategy.

  • Many small island developing states and small island states in the Caribbean and Pacifi c Ocean regions and in the Atlantic, Indian Ocean, Mediterranean and South China Seas (AIMS) region are Commonwealth member countries. Two-thirds of all Commonwealth countries are small states, and 23 of these are classifi ed as SIDS.

  • This chapter gives an overview of tourism supply chains. It discusses supply chain management and identifi es existing local supply chains, who the main players are, what level of contribution is made along the supply chain, and the level of local supply and procurement along the tourism value chain. The economic linkages of tourism in small states are explored to reveal their extent and, in particular, the effect on the backward and forward linkages in the tourism sector. The chapter introduces this topic more generally before analysing tourism supply chain issues using case study material from Malta, 16 Seychelles and Jamaica. 17 Finally, the associated topics of niche products and services are examined.

  • Despite its rapid growth, the cruise sector is still relatively small in comparison to land-based mass tourism in SIDS. However, its rapid growth and expansion, especially over the last ten years or so, and the forecasts for growth in the next ten years, make this niche sector worthy of further attention.

  • The previous two chapters presented the main direct channels through which tourism impacts upon SIDS and small state economies. We noted signifi cant impacts and gave supporting evidence. This chapter examines the indirect channels. While there is evidence relating to direct channels, there is often a paucity of data concerning indirect channels in SIDS; however, appropriate examples are used here where possible. In terms of reliable and usable data, the WTTC publishes disaggregated data that it has collated into direct, indirect and induced categories. WTTC material is used here where appropriate.

  • The conceptual framework that underpins this report has been developed by the World Bank and applies the concept of inclusive growth to tourism in SIDS. In particular, the notion that has been used here is that the impact of tourism on SIDS can best be expressed by considering in turn direct, indirect and induced channels. This fi nal chapter draws upon the results of the desk-based research, the country case study of Seychelles, and technical and specialist advice from professors at the Universities of Birmingham and Bournemouth. The chapter ends with policy recommendations and suggestions for future work on tourism and inclusive growth strategies.