To complete the transition, however, we need to reconsider the evaluation of public expenditure performance. The typical benchmark that the rate of return is greater than the cost of servicing the additional debt is often more difficult to achieve for riskier and/or longer-term investments. This can result in perverse incentives to invest in projects that only temporarily boost economic growth rates.
Today it is the country’s most important industry in terms of real value added, foreign exchange earnings, and employment. The question now becomes, can we shape a better future for our tourism industry and make it the driver for economic growth? Or put differently: do we still have room for more growth in the tourism sector?