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Active management of external debt and tourist development. Swaps debt-sustaibable tourism

Abstract:

Most actors on the international scene show a deeper concern on foreign debt nowadays. So, reaching a definite solution in the struggle against poverty is to be a priority. In the framework of an active debt management policy, new initiatives to link debt reduction to sustainable development may be carried out. This paper focuses on explaining how tourism can promote economic development and describing possibilities offered by the financial conversion instruments called swaps. In this sense, it assesses possibilities of debt conversion into sustainable projects as a tool to prompt social economic development and environmental preservation in developing countries. Consequently, this paper tries to state a strategic plan to manage foreign debt funds to favour sustainable tourism development in highly indebted countries with great tourism development capabilities as well.