Abstract
Tourism is an important sector in most Commonwealth small states, particularly the island states. It is often a major source of government revenue, employment and foreign exchange. In some countries, such as Antigua and Barbuda, Maldives, Seychelles, The Bahamas and Vanuatu, tourism contributes over 50 per cent to GDP. The tourism sector in small states has shown an upward trend, while other sectors have declined. In recent years, the annual growth in tourism in Caribbean and Pacific small states has been between 4 and 5 per cent. Growth in tourism can be expected to stimulate growth in other sectors, as tourism sources goods and services from other sectors. In developed economies most goods and services used in the tourism sector are supplied locally: this is not usually the case in small states, where most products are imported. In addition, services supplied locally tend to be basic and small scale.
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