The Impact Tourism Industry a Country’s Economy
The demand for tourism is particularly beneficial because it brings income to the country economy, it creates job opportunities, attracts more travelers, it helps countries become more recognized and improves the economy. In analyzing tourism, one must understand that the increase of tourism demand will ultimately change the economy of countries, providing more jobs and employment to workers and improving the relationship of countries across the world.
Tourism plays a pivotal role in spurring the investments in new infrastructure and completion between local firms and firms in other tourist countries (Ioannides & Debbage, 1998, p.32).
Tourism has been a good tool with which favorable balance of trade is achieved by many developing countrie4s. It should be noted that many developing countries have an agricultural based economy. Many exports from these economies would barely fall under agriculture and tourism comes second. Agricultural goods tend to have less value as compared to manufactured or industrial goods such as vehicles. This leaves many countries to use tourism as one of the industries that fill the trade gap in terms of exports and imports (Rodgers, 2001, p. 218).
One of the aspects that define a country's economy is the unemployment rate. It is through the unemployment rate that the country can be said to be stable or unstable. Tourism provides employment through several ways. This would comer in terms of direct and indirect employment. For direct employment, individuals work as officers in the tourism sector for instance wildlife guards, tour guards, drivers and many others. Indirectly, individuals would work as local businesspersons selling curries and other artifacts or even small-scale vendors that sell goods that attract tourists (Mak, 2004, p. 377).
Tourism has been a great tool in job creation. Through tourism, individuals have been employed on both permanent and non-permanent basis. Others have started their own personal business that earns them a living through the provision of goods and serves to tourists. The service sectors such as banking and transport have also been able to gain from activities, which tourists engage in. Some of the businesses that have gained much through tourism are the hotel industry and the tour companies. Many tourists happen to move to places that are far from their homes. This would mean that they a will have to make arrangements on accommodation and other things that will be necessary for their stay (Huybers, 2007, p. 156). As a result, hotels come up and provide accommodation to the visitors. This explains why high-class hotels would always be found next to tourist centers.
Today, air transport has been improved to the level that traveling from one point to the other has become far much easier (Lubbe, 2003, p.158). This has resulted in growth and increase in taxes that are obtained from air travel by such countries. Countries such as Britain and Dubai have benefited so much from this phenomenon. For instance, Heathrow Airport is one of the busiest airports in the world. This is attributed to its preference as a stopping point while on transit from one place to the other. Many tourists would land in Britain before getting to their target destinations. As a result, the government in London gets high amounts of taxes from this business (Law, 2002, p. 377).
Tourism has been a great tool in supported relationships between countries. A look at China, Korea and Japan would indicate that tourism has affected in relations between them. With cordial relations between these countries, many business and trade deals have been signed (Mak, 2004, p. 123). This has resulted in increased trade dealings between these countries hence economic growth. The cordial relations between these countries have resulted in increased confidence by investors from the three countries. This confidence has seen many investors touring these countries whenever they are not in for business dealings (Suder, 2004, p.158).
Asia pacific countries are expected to grow at a faster rate than their rivals, due to rising affluence do and increased spending by visitors (Singh, A. 1997, p. 950). The existence of huge numbers of visitors from the three countries ensures that the country in question develops and attracts the travelers’ eyes. These income and revenue generated by these spending visitors would be critical in development of infrastructure such as schools, roads and hospitals. This infrastructure would in one way or the other boost economic growth. Investors would want to pitch camp to those areas with good infrastructure (Page & Connell, 2006, p.37)
The tourism industry as said earlier provides more and more jobs at any one time to citizens of the host country both directly and indirectly. With increased levels of income, domestic tourism is supported. This means that foreigners would still promote local tourism in a great way. The income earned from activities of foreign tourists would facilitate local tourism hence boosting the revenue from the industry to the government (Huybers, 2007, p. 97).
Tourism is an industry to reckon in many countries. This is attributed to the revenue that the industry contributes to the national budget. Today, most developing countries attribute this industry as one of the largest and most dependable industry. Other than revenue generation, the industry has so much to affect the economy than anyone can think of. Tourism demand is capable of changing the economy of countries, providing more jobs and employment to workers and improving the relationship of countries across the world. It is definite that tourism remains to be one of the backbones to the economies of many countries (Goggans & DiFranco, 2004, p.123).
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