Essay On Importance Of Tourism

Recently Tourism has been recognized as a major drive or a contributor to the economic growth and the development of any country, especially the less-developed and developing countries. Tourism plays an important role in the economy of the countries, be it less; developing and developed country. It contributes to the economy in many ways, for e.g. creates jobs, poverty reduction, backs to the GDP of a country, enhance multiplier effect and economic linkages, etc. (Vanegas and Croes, 2003:14). In this essay I am going to elaborate more on the importance of the tourism as a factor and contributor to the economic growth.
The travel and tourism is one of the leading job creators in the world recently. The tourism industry hires about 98 million people directly, signifying over 3% of all employment. If indirect and induced impacts are included in the tourism industry, it contributes to around one in eleven jobs worldwide. Over the last two decades for example, Travel and Tourism has played a more and more important role in the economic development of many countries especially less-developed ones. Increased travel across the globe has been driven by growth in greater amounts of leisure time; improved and highly accessible transportation systems; real incomes and including supply chains; highly effective communication systems that enable marketing and a important number of the new tourism services. The more visitors go to destination, the more restaurants, hotels and additional tourism services are needed and the more jobs in Travel and Tourism are created to stimulate the economy of a specific country. For example, in 2011, India and China were responsible for about 48% of Travel and Tourism jobs worldwide, compared with 43% a...

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...006:57) added that although tourism contributes positively on the GDP, it also has some negative effect on GDP in the area of leakages, in smaller, under-developed countries. This usually happens when the majority of the tourist facilities are managed and owned by the foreigners. Examples of such facilities include accommodation, airlines, and other services. In these instances, the leakages refer to the fact that the money earned through tourism is usually transferred to external bank accounts outside the country where money was made and does not significantly boost the local economy or GDP of the certain country.
Consequently, it is evident that tourism in creating jobs, improving leakages, contribution on the GDP, enhancement of multiplier effect, poverty reduction and engaging people to the programs that enable and improve the economy of the specific country.