number of operating airlines—and the quality of the its
infrastructure both for domestic and international flights.
Vital for ease of movement within the country is
the extensiveness and quality of the country’s ground
transport infrastructure. This pillar takes into account
the quality of roads, railroads, and ports, as well as the
extent to which the national transport network as a whole
offers efficient, accessible transportation to key business
centers and tourist attractions within the country.
The availability and quality of transport
services pillar complements the assessment of infra-
structure by taking into account the amount and the
quality of services available for shipment, including the
quantity of services provided by liner companies, the
ability to track and trace international shipments, the
timeliness of shipments in reaching destination, general
postal efficiency, and the overall competence of the
local logistics industry (e.g., transport operators, customs
brokers). This pillar also considers the degree of open-
ness of the transport-related sectors as measured by
economies’ commitments to the General Agreement on
Trade in Services (GATS).
Given the increasing importance of the online envi-
ronment for travel and trade—for planning itineraries,
purchasing travel and accommodations, establishing
contacts with potential clients, marketing measures, and
utilizing the full potential of information and communi-
cation technologies (ICT) for facilitating border proce-
dures—we also capture the quality of the ICT infra-
structure in each economy. In this pillar we measure
ICT penetration rates (Internet, telephone lines,
and broadband), which provide a sense of the society’s
online activity. We also include a specific measure of the
extent to which the Internet is used in carrying out
transactions in the economy, to get a sense of the extent
to which these tools are in fact being used by businesses.
The policy rules and regulations pillar captures
the extent to which the policy environment is conducive
to business in each country. Governments can have an
important impact on the development of sectors of the
economy, depending on whether the policies that they
create and perpetuate support or hinder that develop-
ment. Sometimes well-intentioned policies can end up
creating red tape or obstacles that have the opposite
effect from the one intended. In this pillar we take into
account the extent to which foreign ownership and
foreign direct investment (FDI) are welcomed and
facilitated by the country, how well property rights are
protected, the time and cost required for setting up
a business, the extent to which visa requirements make
it complicated for visitors to enter the country, and the
openness of the bilateral Air Service Agreements into
which the government has entered with other countries.
Safety and security is a critical factor when
measuring the ease of movement of goods and people.
Tourists are likely to be deterred from traveling to
dangerous countries or regions, and a lack of physical
security imposes significant costs on trading. In this
pillar we take into account the costliness of common
crime and violence as well as terrorism, and the extent
to which police services can be relied on to provide
protection from crime as well as the incidence of road
traffic accidents in the country.
Based on these 10 pillars, the final OBI score is
calculated as a simple average of the scores for each
country.
Coverage is limited to the 125 economies covered
by the Enabling Trade Index in 2010, so 14 countries
covered by the Travel & Tourism Competitiveness Index
are not included. These are Angola, Barbados, Brunei
Darussalam, Cape Verde, the Islamic Republic of Iran,
Lebanon, Libya, Malta, Moldova, Puerto Rico, Rwanda,
Swaziland, Timor-Leste, and Trinidad and Tobago.
Results
The results of the OBI and its pillars are presented in
Table 1. Singapore tops the rankings for openness of
borders, ahead of second-placed Hong Kong SAR by
a sizeable margin. Both economies are strongly geared
toward the international economy and consequently
perform very well across all 10 pillars of the OBI.
The top 20 ranks of the OBI are dominated
by European countries, with Nordic economies such
as Denmark and Sweden occupying top positions.
Other than Singapore and Hong Kong, the only non-
European countries in the top 20 include Canada at
8th, New Zealand at 14th, the United States at 15th,
Australia at 16th, and Japan at 19th. Most European
countries, in particular the members of the European
Union (EU), have efficient border procedures in place,
boast well-developed infrastructure transport services,
and have safe and enterprise-friendly business environ-
ments. At the same time, in many EU member states,
market access remains constrained. Despite the region’s
overall openness to trade and the movement of people,
some economies lag behind. Weakest performers Bosnia
and Herzegovina and Ukraine occupy the 86th and
the 88th positions out of 125 economies.
Given the diversity of the region, it is not surprising
that the results of Asian economies spread almost across
the entire rankings, ranging from top-ranked Singapore
and Hong Kong to Tajikistan at 114th and Nepal at
118th positions. Japan, the Republic of Korea (25th),
and Taiwan, China (27th) occupy places in the top 30,
while Malaysia comes in at a good 35th position.
China’s ranking of 43 reflects the country’s fairly effi-
cient border procedures and air transport infrastructure
on the one hand and fairly protected markets and a
somewhat difficult policies and regulations on the other.
India, ranked 67th, shows a profile similar to China’s.
Chile tops the rankings among the Latin
American and Caribbean economies at 29th, out-
performing the rest of the region by a significant margin.
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1.9: Assessing the Openness of Borders
The Travel & Tourism Competitiveness Report 2011 © 2011 World Economic Forum