6.121.                  As mentioned in paragraph 5.37, in many countries, some or all handicrafts as such cannot be identified in CPC Ver.2, nor can their production be associated with any specific production process within ISIC, Rev.4. Yet, in many countries, the amount of visitor expenditures on such goods may be significant.

Box VI.10 

Production and trade of handicrafts 

Handicrafts are purchased   mainly by individuals, whether for their own use or as gifts. Further: 

●          Purchases made by resident   individuals within their usual environment to take as gifts on an upcoming   tourism visit abroad (or even within their country) are considered part of   internal tourism expenditure. These   purchases are basically made at handicrafts shops located near the buyer’s   place of residence (which may or may not correspond to the places where the   handicrafts are produced). 

●          Purchases made by resident individuals   outside their usual environment for their own use or to take as gifts on a   forthcoming tourism visit abroad (or even within their country) are   considered part of internal tourism expenditure. Such purchases are made   mainly when residents travel (for tourism purposes) to the producing regions   and buy directly from the producer or from merchants established in zones   nearby. 

●          Purchases made by non‑residents, whether   or not they are considered visitors in tourism statistics, during their stay   in the producing country, would or would not form part of inbound   tourism expenditure, according to the classification of the traveller as a   visitor or non‑visitor. 

However, some purchases of   handicrafts are not part of tourism expenditure, that is to say: 

●          Purchases made by resident individuals   within their usual environment for their own use do not form part of tourism   expenditure. They are to be included in final consumption of resident   households and not in tourism final consumption. These purchases are made   mainly at  handicraft shops located near the buyer’s place of residence (which may or   may not correspond to the places where the handicrafts are produced). 

●          Purchases made by enterprises for their   own use as decorative or useful objects (for example, furniture and   tableware purchased by restaurants and hotels) do not form part of tourism expenditure.   However, they could be taken into account in a broader and more sophisticated   measurement of the demand linked to tourism if such enterprises were engaged   in tourism characteristic activities. 

●          Purchases made by merchants for export or   direct exports by artisans or associations of artisans do not form part of   tourism expenditure. 

In summary, not all   purchases of handicraft products correspond to tourism expenditure, and what   is more, not all handicraft purchases by households form part of tourism   expenditure. Hence, a slightly more elaborate analysis of the relationship   between handicraft production and tourism expenditure on handicrafts will be   necessary. This means that, as in the case of all products acquired by   visitors as part of tourism consumption, there should be an effort to develop   a reconciliation between observations of this consumption from the supply and   demand sides.