Publication: Local Economic Development and Tourism
Date
2009-08
ISSN
Published
2009-08
Author(s)
Hayakawa, Tatsuji
Rivero, Monica
Abstract
The World Bank dropped its engagement in
the tourism sector during the 1980s after twenty years of
financing tourism projects which included infrastructure for
resort sites, lines of credit for hotels, training, and
investment in hotels and other tourism related projects. At
the time, World Bank lending for tourism in Latin America
and the Caribbean (LAC) was just US$350 million per year.
After the tourism department closed in the late 70s, some
projects supporting tourism continued, but total annual
lending for tourism fell to US$150 million by the mid-80s.
It had reached a low of US$50 million by the mid-90s. To the
mid-90s the trend started reversing itself and by 2007
annual lending for tourism grew to US$175 million, and is
expected to pass the $550 million dollar mark during FY09.
The World Bank's renewed interest in tourism derives
from its direct and indirect roles in reducing poverty and
achieving the United Nations millennium development goals.
Tourism is currently estimated to contribute around 10
percent of global gross domestic product (GDP) and to be the
largest contributor to employment worldwide. Thus tourism
can impact positively on local economic development (LED)
and, in turn, can lead to poverty reduction in destination
communities and countries.
Citation
“Hayakawa, Tatsuji; Rivero, Monica. 2009. Local Economic Development and Tourism. en breve; No. 145. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/85c5d0d5-8946-5a26-8131-1970f0b42eed License: CC BY 3.0 IGO.”