World Economy Realtion With Tourism

8/2/2019 World Economy Realtion With Tourism

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Assignment No. 01Do You Think Tourism is a useful Industry to the World Economy? Why?

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Yes.

In the World, Tourism is one of the fastest growing industry and a strongcontributor to sustainable development and poverty alleviation. Over 900 millioninternational tourists traveled last year and it is been forecasts 1.6 billion tourists

will be traveling around the World by the year 2020.

Over the past six decades, tourism has experienced continued growth anddiversification to become one of the largest and fastest growing economicsectors in the world. Over time, more and more destinations have opened up andinvested in tourism development, turning modern tourism into a key driver forsocioeconomic progress.

Now Tourism is the largest industry passing Petroleum, Ammunitions andothers. In 2007 the earning of Tourism in International wise $ 864 Billions. Itincrease 5.6% than 2006. Tourism also has become one of the major

international trade categories. Today, the export income generated byinternational tourism ranks fourth after fuels, chemicals and automotive products.For many developing countries, it is one of the main income sources and thenumber one export category, creating much needed employment andopportunities for development.

The Key Factors of Tourism in World Economy.

Generating Income and Contribution to Government in GDP

In 2007 the earning of Tourism in International wise $ 864 Billions. It increase

5.6% than 2006. In 2007 nearly 903 million people travel around the worldmaking $ 4.4 Trillion revenue through travel tourism activities. This contributes10% to World GDP. In the 2020 nearly 1.6 Billion people are going to travelaround making $ 8.6 Trillion revenue through travel tourism activities. This isnearly two times in the increase of Revenue and the contribution to the WorldGDP by Tourism is going to be 12%. Some Countries mainly depend in tourismactivities in their Economy Such as Spain, Maldives & France.

E.g.:Tourism Contribute 80% of Spains GDP.

Create Employment Opportunities

Tourism is an Industry which is mainly depends on Human Resource becauseof the Nature of its business. It is the largest employer in the World now. Thetourism creates 01 employment opportunity for every 09 tourists in the world. Inthe future while other sectors going in to depend on machinery due to technologydevelopment the Tourism industry will remain as same in the Human Resourcebecause of the nature of its service. Worldwide, international tourist arrivalsreached 903 million in 2007, up 6.6% on 2006 making more employmentopportunities


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Regional Developments

It helps to develop the area of the tourism destinations by making morerevenue earning approach to local people in the region. Because of the touristscoming into region, the area people will involve in small scale business activities

in production, marketing, services, promotions such as making & sellinghandcrafts & souvenirs of their region & country, guiding the tourists, restaurantsand other various involvements. This will help to increase the per capita of theregion and definitely reflect in the countrys GDP too. The governments mostlypromote Community Tourism to archive these regional Developments.

E.g.:Panama area Tourism Development Project by Sri Lanka Government

Infrastructures Development

The tourism needs standard and quality basic structures for its

development. The government and the private will take initial steps to developthe basic structure such as Roads, Hospital, Post Office, Police Station and viceversa structures to meet the international standards to fulfill the needs ofInternational tourists visiting the country. This will not only help the tourist butalso going to benefit the local residence of the region.

For example in Beruwala Moragalla area was an undeveloped and smallincome generating village before tourism introduced to the area. Now PostOffice, Police Station and other basic services are available all around this regionand its growing day by day.

Investments

The tourism needs superstructures to fulfill the needs of tourists coming tothe region. As this activity needs more capital the private sectors will pumpmoney to the tourism to earn more profits as it is the industry which makes themoney double in small time period. Also the government will act as a NationalTourism Organization (NTO) to promote the country as a tourist destination andalso assure the Quality Maintain by the Private sectors & also play a roll asSupervisor to maintain the Quality of the Service provide by Private sectors.

Most of the governments give special proposals to the private sectors to

invest money into their country for tourism sector and to support to develop heinfrastructure of their country. As a benefit offer the private sectors will investtheir money in to the tourism. This will bring foreign money into the country andwill make more and more employment opportunities and other benefit o thecountry which is involve in tourism sector.


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Some facts about Tourism:

From 1950 to 2007, international tourist arrivals grew from 25 million to903 million.

The overall export income generated by these arrivals (international

tourism receipts and passengers transport) grew at a similar pace,outgrowing the world economy, exceeding US$ 1 trillion in 2007, or almostUS$ 3 billion a day.

While, in 1950, the top 15 destinations absorbed 98% of all internationaltourist arrivals, in 1970 the proportion was 75% and this fell to 57% in2007, reflecting the emergence of new destinations, many of them indeveloping countries.

Current Developments and Forecasts International wise:

Worldwide, international tourist arrivals reached 903 million in 2007, up

6.6% on 2006. Between 1995 and 2007 growth averaged over 4% a year, in spite of the

stagnation between 2001 and 2003 due to terrorism, SARS and theeconomic downturn.

International tourism receipts rose to US$ 856 billion (625 billion euros) in2007, corresponding to an increase in real terms of 5.6% on 2006.

Outbound tourism in recent years has been increasingly driven byemerging source markets.

According to the UNWTO World Tourism Barometerof June 2008, tourismdemand held up quite well in the first four months of 2008. Overall,international tourist arrivals grew at around 5% between January and April

2008 compared with the same period of 2007. By 2010 international arrivals are expected to reach 1 billion, and 1.6

billion by 2020.

Tourism 1990 2007 Tourism 2007By Purpose of Visits


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International Tourists Arrivals 1950 to 2020

Conclusion

As you see in the figures & facts given by World Tourism Organizationabove in 2007, just over half of all international tourist arrivals were motivated byleisure while other travels for Business & Various other reasons.

As in the future the amount of travelers is going to increase very quicklyand it is going to Boost and expend the other related service industries such asTransport, Medical, Insurance & Miscellaneous related to Service Sector... Thiswill make more revenue overall around the World and will make a need onHuman Resources as Travel & Hospitality industries are mostly depend on HR.

In the future this industry is going to be the No. 01 industry which willenable more vacancies in the World & will contribute more part on countrieseconomy portfolio. Because of All these reasons I think & believe Tourism isgoing to More Important Industry than useful in World Economy.

Also more developments will take place around the World to fulfill the needs ofthe Tourists roaming around the world in the Future.

By Asfaq [email protected]

Student No 2008/DTTEHM/06

Source: World Tourism Organization (UNWTO)

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World Economy Realtion With Tourism