World Tourism Organization underscores Microcredits

2005 has been designated International Year of Microcredit by United Nations resolution 53/197. In this context, the World Tourism Organization (WTO) has suggested that national tourism administrations take advantage of the opportunity that this year represents for the micro businesses and the small and medium-sized enterprises of the tourism sector, especially, in developing countries.

Microcredit can assume an important role in the global strategy for achieving the Millennium Development Goals (MDGs) which include a commitment to cut poverty in half by 2015.

"The Organization believes that tourism can be harnessed as a significant force for the alleviation of poverty, as well as for the protection of the environment and traditional cultures, giving economic value to natural and cultural heritage, creating employment and generating foreign exchange earnings," stressed Eugenio Yunis, Chief of Sustainable Tourism Development.

The tourism sector is composed of a wide network of micro businesses and small and medium-sized enterprises (SMEs). However, it is often a difficult task for small entrepreneurs to borrow the relatively modest amount of money needed to start and sustain their activity.

The WTO made the following recommendations:

· obtain information about the existence of a national committee, or a focal point within government, for the International Year of Microcredit 2005, and establish contact with it in order to propose and coordinate activities in the field of tourism,

· establish contacts with the banking system, especially the commercial banks specialised in micro, small and medium-sized enterprises, or with NGOs and other bodies operating with SMEs, in order to set up some kind of collaboration agreement specifically for the tourism sector,

· help small tourism entrepreneurs to associate around trade or professional associations or tourist chambers, in order to negotiate borrowing terms with the banking system in better conditions than through isolated requests, and to obtain from these bodies not only the financial guarantees or collaterals required by banks, but also technical support,

· conduct campaigns in order to raise awareness at the local and national levels about the possibilities offered by microcredits in the field of tourism, and the impact it could have upon poverty alleviation objectives.

Finally, the WTO said it would like national tourism administrations to report on any existing microcredit systems available to tourism SMEs in each country, as well as the barriers or difficulties faced by tourism companies in accessing existing credit schemes. This would help WTO to disseminate valuable information, making suggestions and illustrating with real examples, thus converting the forthcoming International Year of Microcredit into a relevant step towards poverty alleviation through sustainable tourism.

The WTO said it can also facilitate links between the National Tourism Administration of its member States and the UN bodies in charge of the year wherever is needed, so as to ensure that different international initiatives address the issues of sustainable development of tourism and poverty alleviation in a synergistic way.