Tourism is recognized as a big industry worldwide which is a key sector of development in several countries and a major source of income, jobs and wealth creation and also influencing complementary investment and domestic policies. This range of influence and importance creates challenges to measurement in tourism. The most industry activities can be measured by clear statistics such as agricultural industry and automobile or electronics manufacturing. While, Tourism is a large and complex industry which is rather difficult to measure is a key component of the services economy.
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. indicator Core Supplementary Future development
Tourism performance and impacts -TDGDP
-Inbound tourism expenditures
-Exports of tourism services
Ability of a destination to deliver quality and competitive tourism services -Labor productivity -Air connectivity and inter-modality -Government budget allocation for tourism
Table1: List of indicators for measuring in tourism
Source: modified from OECD (2013)
Table1 shows indicators for measuring in tourism in accordance with OECD (2013) stated that indicators for measuring such factors mentioned in tourism ...
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...and developing tourism competitiveness. And the government budget allocation for tourism which is a measure of national government tourism expenditure per capita tourist. The funding is a sign of commitment to the tourism sector and to work in partnership by investing for improvement in performance ability and competitiveness, this is typically linked to a national policies and programs to be delivered with industry partners as part of a policy or program that aims to improve the quality of product and services within tourism industry, facilitate tourism investment opportunities and promote the country as a tourist destination. Ultimately, such indicators mentioned are the essential tool to measure entire tourism sector that result in the economic growth and tourism development which are to forecast the economic target and to enhance tourism sector in the future.
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.
There is not really a universally accepted definition of tourism. In 1994 the World Tourism Organization (WTO) revised its definition. It says the tourism comprises of 'the activities of persons travelli...
With the development of transportation and the acceleration of globalisation, tourism has become an important means to stimulate economic growth. According to the world tourism organisation (UNWTO), tourism has become the world’s fastest and largest economic sector. Moreover, international tourists have increase dramatically from near 25 million in 1950 to 996 million in 2011(Chang et al., 2014). However this figures have put high stress on not only environment but also on society and economy for the local areas.
Tourism sector had become the most fast-growing sector in economy in the world which contributes to nation’s development. According to study done by UN WTO in 2011, international tourist arrival increase 4.6% from 940 million in 2010 (Tourism Highlights, 2012). Malaysia also not being left out from the tourism sector economic boost as it became the country’s most rapid growing economic sectors, and as reported in The Star Online in 15 August 2013, in 2012 the tourism sectors contribute RM 60.6 billion with the number of tourist of 25.03 million (The Star, 2013). Also in Thailand, the tourism sector is also growing and statistic done by Tourism Authority of Thailand (TAT) in 2008 show that in 2007 the sector contributes about 547 782 million Thai baht or 11 billion Euro (Tourism Authority of Thailand, 2008). Both countries have very similar strategies to attract the tourist such as making a national tourism campaign and launching e-tourism in the internet.
According to Singapore Tourism Board (STB), tourism sector currently contributes 4% of Singapore’s GDP and provides approximately 160,000 jobs (nearly 4.5% of labor force is working in tourism sector ), Singapore’s International Visitor Arrivals (IVA) in 2013 reached 15.6 million, Tourism Receipts (TR) came in at S$23.5 billion and Hotel Room Revenue for 2013 was S$2.9 billion (Singapore Economic Development Board, 2014). Tourism industry plays a key part in supporting Singapore’s status as a dynamic global city that attracts business, capital and talent. Moreover, tourism creates a more diverse leisure environment for the residents, thus improving their quality of life.
According to Buhalis (2003) tourism industry is one of the largest industries in the world; it is rapidly expanding and contributes with over 10% to the global Gross domestic product (GDP). Wall and Mathieson (2008) confirm that tourism has become a phenomenon of global scale with more that 700 million international travellers annually and more national tourists. The figures above shows us that tourism industry plays one of the main roles in todays world and has great impact in the formation of a global world.
In this literature review we will take a look at tourism and its global reach, examining its impact on the world’s economy as well as the Caribbean region and Jamaica. This literature review serves to explore the magnitude of information surrounding tourism. With the aid of the Comparative Advantage Theory, articles and statistical information we will explore the ever growing tourism industry.
The economy can be clearly identified as the most beneficial aspect of tourism. “According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce” (Mirbabayev, 2007). In Australia alone, Tourism contributed $87.3 billion in 2012, and employed 908,434 (7.9%) people (Kookana & Duc Pham, 2013). Tourism is “one of the most profitable and rapidly developing industries in the world” (Popushoi, 2004). Every year the number of tourists increase dramatically and consequently the revenues from tourism will increase substantially.
Tourism is one of the world’s largest industries and fastest growing economic sectors. Tourism is travelling to a destination, for purposes such as leisure or business, tourists activities are taken into account when defining tourism. (Smith et al, 2014). Textbook.
In addition to a growth in numbers, tourism industry is one of the economic sectors that grows the most. There are two charts to take into consideration: the first concerns the incoming tourist amount, the second one the amount of money they spend in the country (this is the one that really interests us). In the latter chart, Spain is in world’s second place after the USA and we go down to the sixth
Developing countries and tourism: the combination of many measures to solve economic problems. Tourism always has great impact on the development of the country's economy .As it promotes the exchange of monetary values as well as promotes interconnectedness between different countries. The economic importance of tourism varies from place to place, but a significant contribution to the wealth of many countries can be seen. There are many advantages of tourism but the main are creation of tourism jobs, income generation and foreign exchange. For many countries, tourism is the foremost source of country’s economy.
Is tourism an industry and if not, what is it and how can it be defined? To answer these questions we need to find the definition of industry first. An industry is a group of firms producing products and/or services that are close substitutes for each other(……). To be considered as an industry, it must meet three factors -- individual businesses, revenues of those businesses, and a common product. Now let’s see what tourism is. However, there is no single definition, that is to say no agreement on what tourism should be. There are some reasons: tourism includes a number of diverse sectors (e.g. transport, accommodation, attractions, other services); tourism includes a number of academic subjects -- some argue that as a subject tourism is conceptually weak; difficult to establish strict boundaries around tourism both as a business and as an area of academic study; weak data sources which make comparisons between countries difficult.
At the present time, one of the inseparable parts of the economic growth is considered as tourism industry. Commonly, tourism is the movement of people to other places for business or leisure purposes as well as covers their activities. Holloway and Humphreys defines that the places where tourists come and spend their money are called as “tourist destinations” in other words “receiving areas”. Many countries have been improving tourism to overcome economic difficulties since it is growing fast. The industry activities have been demonstrated a general positive trend in the economy and it has already become the inherent part of economic development. In host countries, tourism has led to such positive consequences as the improved infrastructure,
Tourism is the one of economic and social activities that increasingly vital. Number of travellers domestic and international is increasing. In fact, several countries in present world develop tourism sectors as primary sector which generate national income. According to Salah Wahab and Cooper (2003). Tourism is also sector which involves role that mutually link between government, private sector and also public.
Tourism is often associated with traveling to places away from home. Tourism has a big impact on the economic growth of some countries, which define the shape of their cities by producing different sectors like historic districts, convention centers, museums, malls, hotels, restaurants, and the list can be endless. Furthermore, tourism elements have been developed by cities for a variety of reasons including: situating themselves in the world by drawing a positive image and attracting visitors and for their money.