In the century of the globalization, tourism has become an important factor in most countries economy. Tourism sector is main financial source for development in some least developed countries and at its turn, developing and developed countries benefit from tourism significantly especially host countries. According to United Nations World Tourism Organization UNWTO (2011) the contribution of tourism to GDP of the world, which is equal to USD 2,155.4 billion, worldwide is estimated at some 5 percent. Tourism influences host countries economy positively by reducing unemployment rate, improving international exchange and increasing income for a host country.
One of the main advantages of tourism for host country is additional job creation that
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Countries use this balance to pay their imports and return the foreign debt which is crucial for economy of a country. According to Holloway and Humphreys, ‘the outflow of British money in the form of spending abroad by British inhabitants considers an import, while the inflow of remote holidaymakers cash spent in United Kingdom considers an export to foreign exchange balance’ (2012, p112). It is obvious that the more tourists come to country, the more exchange balance will be improved. As a consequence of this balance of payments, the country’s economy will develop considerably. Thus, government might reduce taxes for citizens or can improve infrastructure of city and can perform other actions that might improve the quality of citizen’s life. According to Boz (2011) tourism is main source of foreign exchange for 49 least developed countries. It means these countries pay attention tourism as a main part of an economy. To conclude, tourism plays an essential role in foreign exchange balance and countries use this balance to economic …show more content…
Tourism is financially profitable for country in two ways: taxation for tourists and additional investment. These days, top tourism cities used to tax their tourists. Most of them use tourist bed tax system. For example, according to Holloway and Humphreys that if tourist wants to stay at Edinburg a night 1 pound will be added his or her hotel room bills; In economic recession of 2008 and 2009, Rome struggled from raising city’s funds and government made a tourist bed tax to rebuild the Colosseum (2012, p106). Further positive effect of tourism is additional investment to country. Most developing and least developed countries use tourism to attract foreign investments and to develop the country. According to WTO, total investment for tourism was USD754,6 billion or 4,4 percent of total investment in 2013. Good example is Australia, which is one of the best places that attract more investors rather than other countries because of its area, climate and other superiorities. According to M.Haque(2015) that ‘In 1993–1994 total foreign investment in tourism increased by more than 180 percent to around $4.2 billion, compared to $1.5 billion in 1992–1993 in Australia and this increase continued until 2000’. The cause of this increase was the Olympic Games 2000 which was held in Sydney. Another domination of Australia is seasonality that attracts investors and visitors. Tourists can go there
Various definitions of tourism exist. Tourism is defined by Macmillan Online Dictionary as the business of providing services for those people travelling for holidays. Tourism has experienced continued growth over the years and diversification and has become one of the fastest growing economic sectors in the world. For countries like Australia, it has become one of the major contributing sectors in the economy generating large proportions of the national income and at the same time increase employment opportunities. The future is still bright for the industry in the country with possible future growth in expansion and diversification. The industry however has both the pros and cons impacts to various ranges of environments (Tourism Research Australia).
In the financial year 2014-15, it was observed that 3.0% of the total GDP was contributed by tourism total amounting to 47.5 Billion US dollars (Australian Bureau of Statistics). The following graph shows that tourism provided 580,000 jobs to the employers in Australia in the years
Tourism is currently one of the world’s largest global industries and the fastest growing economic segments, with much of the growing market focused around the primeval natural environments such as coastal areas (Tourism Today, 2011). Tourism encompasses the activities of persons traveling to and staying in places outside their usual environment for not more than one uninterrupted year for vacation, commercial and other purposes. It also involves the activities of people, referred to as tourists or visitors, during their visit to these destinations and the facilities and services utilized during their stay (Tourism Today, 2011). These tourists spend money earned in their places of residence at their home country. This money, termed foreign exchange in the visited destination, is used for balance of payment in other countries (About the Tourism Industry, 2014). Foreign exchange enables countries to purchase the goods and services needed to stimulate their economies, thus generating wealth and employment.
time and is therefore perishable. All hotels with a fixed number of rooms and transport operators with a fixed number of seats (railway, air carrier, bus companies, etc.) face the challenge of matching supply to the available demand. Excess capacity that is not sold on a particular day is lost and can never be recovered.
home, the amount used can run up to 440 liters a day. This is almost
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.
Tourism is one of the world’s major profitable economic activities. Tourism ranks among the top five export industries for 83% of countries and is one of the largest industries worldwide accounting for 10% of the world GDP. For many countries the tourism is the main source of income and employment. Australia is not one of these countries but tourism is still an important component of the Australian economy nonetheless. In 2014/2015, tourism alone represented 3% of the Australian GDP. Some of the most popular Australian travel destinations are the coastal cities, such as Sydney, Melbourne and Brisbane.
Tourism brings many jobs and money (£200 million); however this does not stay in Jamaica. Tourism is both labour extensive and is economically good for the country. Many hotel jobs are created, around 6,000 jobs, and if new hotels are built or expanded this creates over 2,000 jobs, this allows local people to get j... ... middle of paper ... ... ooking area.
Tourism industry basically can be measured by research reports and statistical data which are conducted by various related organizations on tourism and economic sector as The United Nations World Tourism Organization (UNWTO), The World Tourism and Travel Council (WTTC), The Organization for Economic Co-operation and Development (OECD) and Tourism Satellite Account (TSA) that is a basic economic tool to measure the tourism industries on the economy. In terms of indicators based on the purpose of this paper seeks to measure the impacts or benefits, competitiveness and future development in tourism.
Firstly, tourism has positive and negative impact on the economy of the local community. It can create jobs and mitigate the numbers of unemployment. For example: one
It is the economic effects of tourism which bring the most benefit to the host nation. Tourism is a low import user which means more of the money earned here stays here. The government is earning money through tourist taxes such as the airport tax, increased export earnings and income tax revenue from people employed by the industry. A balance must be struck between these benefits and associated negative impacts on the community and the environment.
Half of century has gone since ‘tourism boom’ began in 1960s (Tirados, 2011). Nowadays, desire to be a tourist is virtually universe which has made tourism become a central element of globalization. The profit brought from tourism is something that we cannot deny however everything has its two sides which are good and bad, advantages and disadvantages or positive and negative. Thailand is a great example to find out the advantages and disadvantages of the development of tourism impact on the country.
Growth in tourism measured by international arrivals, tourism is also one of the world’s fastest- growing industries in the world. Therefore, tourism industry is important to a particular economy growth, tourism improves economy and infrastructures. It provides jobs such countries like Nigeria that lacks jobs opportunities, lack infrastructures, lack security and so on; tourism can be another main source of income that will help in developing the economy.
Tourism's economic benefits are advertised by the industry for a sum of reasons. The idea of tourism's economic significance gives the industry a much greater respect among the business municipal, public officials, and the public in general. This often translates into decisions to tourism.
Industry of tourism is totally dependent on transport, on its security, speed and convenience offered to the tourist during his travel from place to place. And nowadays air travel takes over in rail roads and ships. Understanding the fundamentals of the relationship with the airlines, the rules of interaction with them to ensure the safety of passengers and their property, services, use of appropriate discounts and benefits in sales is very important, both for travelers and travel organizations.