Further cost savings may be obtained in certain instances from the shortening of the distribution chain, that is by dealing with consumers directly, thereby removing one or more layers of intermediaries. The potential advantages, however, would have to be weighed against potential increases in distribution costs and after-sales servicing, which may in certain cases render direct selling unprofitable. (iv) Tourism and related Services The benefits to the tourism sector will stem from the global exposure that on-line marketing and on-line-booking facilitates. This applies to the hospitality industry as well as ancillary services such as car-hire and excursions. It is nevertheless acknowledged that the success of the local tourist sector to market and sell on-line will depend on a concerted drive to sell Grenada as a tourist destination. (v) Retail In general e Commerce may be seen as a direct competitor with the traditional retail sector. This is more so, however, in areas where products may be digitized and delivered on-line, such as in the case of software or CD's. Direct on-line shopping is likely to reinforce catalogue buying to the detriment of local retailers. It is nevertheless probable that there will still be a preference on the part of the consumer for direct contact with the retailer. However, local retailers can and should avail themselves of the facility of on-line marketing and selling to local consumers. 55 A STRATEGY AND ACTION PLAN FOR GRENADA Anurag Sinha