They are also now looking at their economies and how to bring these back to growth. Read how travel bubbles are the new unique concept considered by many countries to restart tourism and travel. This will all contribute to an increase in economic activity in the area where tourism is being developed. This is the unique aspect of tourism as this creates demand for economies on global scale and more importantly for each country and even goes deeper in creating demand and growth opportunities at city level and local level for various communities. Some destinations will encourage local cultures and arts to be revitalised. Some currencies are worth more than others and so some countries will target tourists from particular areas. Cultural Heritage – Tourism helps explain beauty, art, history and culture of our country. Tourism industry is the main influential type of industry in the world. Transportation has been an integral part of the tourism industry; transportation links tourists with various tourist attractions. I am an avid traveler myself. For this reason, tourism cannot be considered as something unimportant and it not even occurs without a planning. Required fields are marked *. Today, the business volume of tourism equals or even surpasses that of oil exports, ‎food products or automobiles. Tourism definition above shows that it is a set of actions or activities i.e. But why are people beginning to seek alternatives to Airbnb? In this way, our culture can be known throughout the world. What are the alternatives to Airbnb? Societal Progress – Tourism is a wonderful method for cultural exchange. We stated in the first point that tourism creates demand, i.e. Currencies that are strong are generally the most desirable currencies. These could include services from local restaurants, local food joints and places to eat; entertainment places cinemas & theme parks or cultural or sports activities; and may even include retail products and services; shopping malls; or electronics & telecommunications products and services. Whether you are exploring the UK from overseas or looking for the perfect staycation, there are plenty of rural tourism destinations to keep you busy in England, Wales and Northern Ireland. If we first take the developing and growing countries like India, Philippines, Malaysia, Sri Lanka. These 3 key sub-indexes collectively measure competitiveness of each country on 14 key parameters. Spring vacation: What is it + why do we have it? A few weeks ago, one of my Instagram followers didn’t even know about Gosainkunda, one of the famous and holiest lakes in Nepal. The six bullet points above outline some of the important elements of tourism. It is an activity, it is an industry and an important growth driver for a country, its economy and also for its social progress and monitoring. The demand for tour and travel booking and reservation industry is also significant here as they cater to the needs of tourists and travelers only. This often means that many developments in an area as a result of tourism will be available for use by the locals also. This is perhaps stronger reason than the others discussed above. The importance of tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). Tourists visit Beijing to learn more about the Chinese Dynasties. For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. We all want to thoroughly enjoy our tourism time. This group or chain also indicates towards and brings us to the value chain of tourism industry. Nepal has also taken tourism industry as its major sector of income in the fiscal year 2009/11. Below I have provided some examples of the positive economic impacts of tourism. While different people have very different ideas of what makes a good holiday (there are more than 150 types of tourism after all! Stakeholders in tourism: Who are they and why do they matter? Looking from the demand side this implies that travelers (the consumers) have consumed almost the same set or bundle of services at various destinations and event venues globally, and so at the point of consuming these services, presently or in future, they would compare these at a global level. This is because they know how important tourism is to the economies and how tourism can help bring back growth and also create plenty of job opportunities. You can read more about tourism stakeholders and why they are important in this post- Stakeholders in tourism: Who are they and why do they matter? Tourism is also a commercial activity because the whole tourism process involves consumption of services and products. Your email address will not be published. While tourism is the most badly affected industry as it is seen as highly risky activity. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. The 12 industries listed by UNWTO broadly define and describe tourism industry value chain. This is due to it being an individual and commercial activity. This type of tourism is known as cultural or heritage tourism, cultural or heritage sites are main reasons behind the tourism in most Asian nations like China, India, Pakistan and SriLanka. Just think: when you travel, you’re spending money. The third point which we may look at is that tourism as an activity can go much beyond the basic tourism activities or consumption. This involves air, water, rail and road transportation industries. It can help you to relax, which in turn often helps you to be more productive in the workplace and in every day life. This makes tourists important for a country. Now, tourism, as mentioned in its definition, is not an industry as such rather a group of industries. And this is what we will explain here. But in reality, the tourism industry stretches much, much further than this. In phases, these countries are restarting their economic activities. Tourism supports some 7% of the world’s workers. These are also the advantages of tourism and are actually its 5 basic characteristics which signifies the tourism importance for economies, for countries & their societies, and also at the global scale. We will talk about and explain how tourism adds economic (and non-economic) value to a country and why does it have so much importance for every country. It is easy to underestimate the scale of tourism. This could include putting restrictions in place or limiting tourist numbers, if necessary. Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry. The importance of tourism is shown through the provision of social services in the host community. So by its very nature and the state you are in while travelling makes a visitor consume and spend. We want to actually know why tourism is important, for countries, for economies and for the world. We will know how tourism plays such a significant role for countries, economies and its significance for wide scale growth and development. A post shared by Dr Hayley Stainton (@the_tourism_teacher). So, the traveler evaluates and compares the infrastructure and services related to tourism, at any given point of time, at a global level. The 12 basic types of industries classified by UNWTO listed above are the tourism value chain industries. And only then can we truly understand and appreciate tourism's significance and the important role it plays. It is travelling for some purpose and for stay which is not very long or permanent in nature. The Manila Declaration on World Tourism of 1980 recognized its importance as "an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies, and on their international relations." These countries are able to fully benefit from tourism. And then most of the services consumed by tourists cannot be exclusively termed as being provided specifically for tourists like travel, hotel, food and lodging. It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of tourism. This is the demand side definition of tourism industry. Disclosure: This post may contain affiliate links. All these needs create global and regional level demand for travel and transportation services and products. To really bring home the importance of tourism all one has to do is look at an example. Tourism not only contributes towards more economic activities but also generates more employment, revenues and play a significant role in development. We call these travelers as tourists who visit different tourist places and destinations. For example, sunrise and sunset points, long sea beaches, fresh water lakes, waterfalls, etc., often attract large numbers of tourists. When we discuss the importance of tourism it is often somewhat one-sided, taking into consideration predominantly those working in the industry and their connections. The economic benefits of tourism to a country affect many areas of enterprise even if they are not directly in the tourism industry. Now how much they consume and whether they do or not is entirely different. Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills. Staying in an eco lodge is a great way to have an authentically sustainable tourism experience. In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations. The tourism industry is closely interconnected with a number of global industries and sectors ranging from trade to ecological conservation. Tourism provides the opportunity for escapism. This prompts service providers to be more competitive and add more value to their services and bring innovation and ideas. The supply side tourism industry definition will be like: Tourism industry is a group of industries providing services and products for various needs of tourists and travelers on leisure, business and other related tourism characterized travel trips. This makes tourism contribute more widely and strongly to the economy. Direct employment includes jobs that are immediately associated with the tourism industry. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro. If you purchase an item that I link to then I may make a small commission, at no extra cost to you. All these services and their respective industries are part of tourism and collectively form the tourism industry value chain. It provides the opportunity for visitors to stay for a length of time to enjoy the locality and its attractions, while their spending contributes to the local economy. This is the general definition of an industry. There are several benefits of tourism on host destinations. Secondly, it creates various demand for the hospitality industry which includes accommodation, food & beverages, resorts, etc. Found all around the world, eco lodges facilitate environmentally friendly travel and offer tourists a unique experience. Due to these 5 factors only tourism creates demand, fulfills that demand, increases consumption, and brings growth and development to countries and economies. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. Many people claim thatchy ‘find themselves’ while travelling. Importance of tourism arises from the numerous benefits and advantages it brings to any host country. The importance of tourism can be demonstrated through employment generation. tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves There is also the income that is generated through induced contributions. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. On the other hand are the developed countries like the US, UK, Australia, Germany and countries like China and Singapore. Tourism actually helps in and contributes towards the overall development of a country and towards development and well-being of societies. There are two main ways that this money is accumulated. So, apart from the basic and necessary expenditure tourists may be motivated to do many other activities and consume and spend on other things to make their travel time more enjoyable and memorable one. This is another way that the importance of tourism is demonstrated. These countries will also be taking complete benefits and advantages from the 5 points of tourism importance we discussed above. It means that there is a demand which the industries fulfill by providing goods for consumption. This sector is driving growth in industries, in fact pushing those industries and economies to do better. Tourism industry goes beyond attractive destinations, to being an important economic growth contributor. The money that the country makes from tourism can then be reinvested in the economy. THE ROLE OF ACCOMMODATION IN TOURISM DVELOPMENT Tourist accommodation performs an important function within both the context of rural and urban tourism. And we will use a global and very important tourism index to strengthen this point. On this basis, we can define tourism industry as the consumption or use of all services and products by travelers throughout their tourism oriented travel trip. This demand side implication will prompt the country or region looking to attract tourists to induce quality and global standards in the infrastructure and tourism services they are providing. Tourism can help economies to bring in money in a number of different ways. What the tourists spend on consumption of these services and products becomes the revenues of tourism industry. This is why if you are working in this arena it is important that you have a good understanding of the law relating to hospitality. These industries are: Tourism industry is actually a large group of these industries which provide range of products and services aimed at serving tourism and the needs of travelers or visitors. Sustainable tourism explained: What, why and where, Volunteer tourism: The reasons why people volunteer, Leiper's Tourism System: A simple explanation - Tourism Teacher, What is tourism? Tourism is largely a services industry. So, a country seeking growth in tourism has to provide for many things on all these fronts. Tourism industry is important for the benefits it brings and due to its role as a commercial activity that creates demand and growth for many more industries. can bring a growth in inbound tourism. Market-Width.com All rights reserved. Tourism education plays a major role in preparing students to gain professional and practical skills required by the tourism industry. This is forecast to rise by 3.6% to $2,849.2billion in 2019. The tourism industry is of sufficient economic importance and its impact upon economies, environments and societies is of significance for the development of any nation. This further strengthens the role and significance of tourism for a country and its economy. This way tourists also produce or help in creating additional or induced demand for many other related and not so related industries. There are two types of employment in the tourism industry: direct and indirect. The World Travel and Tourism Council calculated that tourism generated ₹ 16.91 lakh crore (US$240 billion) or 9.2% of India's GDP in 2018 and supported 42.673 million jobs, 8.1% of its total employment. Janette Deacon (2006) explains tourism as an important sector of economy and also throws light on not so important type of tourism i.e. Tourism as an industry fulfills the need and demand created by the tourism as an activity. Tourism is a remarkably important industry. This is an important impact on the French economy if you think that Chinese tourists reach 2.5millions. 10 must-see Areas of Outstanding Natural Beauty in the UK, The shocking truth about elephant riding in Thailand. This understanding only will build the basis to know and understand economic value & importance of tourism. Tourists are there to experience and enjoy so there is no definitive limit as to what they may do or buy additional to their planned tourism activities. The importance of tourism and its industry is now much more visible. The service sector of the economy is where majority of the jobs are created as a result of tourism. You will always read and hear that such and such industries witnessing growth due to increased demand. And I post some snapshots from my travel on my Instagram account. It can even drive countries to have a stable and sound political environment and also have a more developed society. Sign up today. The other important observation about the travel and tourism sector which we want to highlight is that the tourists, who are the consumers of this sector, are global and act accordingly when it comes to perception and consumption of tourism and related services as a whole. In conclusion, tourism has a great power of influence in societies where it is developed in very interesting aspects. I will show you one example of how this turns into a negative circle. Looking at the index and why it measures a country's competitiveness on so many areas to judge its tourism competitiveness we can surely say that Tourism effects, and requires contribution from, lot many industries beyond its value chain, whole lot of different sections of a country, and its overall society and political environment as well. Tourism therefore contributes in the growth and development of all countries, in so many ways. Let us add here, in case of business tourism and MICE tourism, the expectations; the standards or parameters; the services and the infrastructure; and the quality levels, all are little high. Tourists come from different countries and carry back image and perception about your country with them and share it with many more. Tourism not only contributes towards more economic activities but also generates more employment, revenues and play a significant role in development. Second is to travel. Interestingly, tourism as an industry has no proper definition as an industry. The whole activity of tourism is basically a 3 step process of needs and demands, which we have listed below. Tourism can help to raise money that it then invested elsewhere by the Government. In order to consistently attract new tourists, to establish a strong inbound tourism market and to sustain tourism growth a country needs to do lot of things. Thus, tourism as a while and within it MICE or business events are, or could be, a significant factor in developing world-class infrastructure and level of services. There are two basic needs that fuel the demand for tourism. Very often the infrastructure is built without any sustainable development plan or environment protection policies. Most of the points made are related to the economy and how it is important to tourism. This creates the value or supply chain of tourism industry. For years World Economic Forum (WEF) has been monitoring tourism competitiveness of countries and their growth and progress towards being a competitive inbound tourism market. From the economic advantages that tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves, there is no disputing the value of this industry. Tourism can be defined as travelling to a place which is different from your home city or country for various leisure or business purposes, and staying there for some considerable period of time at a length. The importance of tourism can be further seen through the contributions to local economies. Beautiful scenery: Tourism booms at picnic spots with beautiful sceneries. Let us now look at what tourism industry is and how it plays such an important role. All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy. One is the curiosity, desire or need to visit and see different tourist places; know, experience & see natural wonders of places, cultures, etc. The 2017 TTC index, which covered 136 countries and their economies for its report, measures their competitiveness on three key areas which are, regulatory framework; business environment and infrastructure; and human, cultural, and natural resources. This is how tourists create country and local specific demand. These are, policy rules and regulations; air transport infrastructure; ground transport infrastructure; tourism infrastructure; price competitiveness in the T&T industry; ICT infrastructure; prioritization of travel and tourism; human resources; safety and security; health and hygiene; environmental sustainability; affinity for travel and tourism; natural resources; and cultural resources. These are also some of the very basic type of industries. This leads to healthier families and more productivity and a happier population. The importance of tourism is also demonstrated through the money that is raised and contributed to government revenues. When many people think about the tourism industry they visualise only the front-line workers- the Holiday Representative, the Waiter, the Diving Instructor. It touches and impacts several industries directly and many more indirectly through tourism spend. We want to understand the reasons and factors which actually make tourism important. The Importance of Tourism in Any Country – Economy, Infrastructure & Business Opportunities (With Infographic) Tourism is the act of traveling within your own country, or to an international destination, for either the purposes of business or pleasure. From the time you decide to go on a holiday to the time you complete and come back home, a whole series of unfortunate incidents can arise that might spoil your well deserved break. You have successfully joined the subscriber list. Having arrived to the country and the city, now tourists need to start their main tourism activity. This, in turn, puts food on the table. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This might include costs for housing, food, clothing and leisure Activities amongst others. Due to all this tourism gains much more economic importance for any country. If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most. The importance of tourism can also be demonstrated through the strengthening of communities. This is known as the multiplier effect. This is often an example of careful tourism planning and sustainable tourism management. There are many must-see Areas of Outstanding Natural Beauty in the UK. First of the tourism specific demands which it creates is for travel and transportation industry to reach tourist destinations. Every year, about a billion tourists … Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries. The second reason is that tourism, to much extent, means enjoyment, exploring and experience a place to its full extent, and also to kind of experimenting and doing new things. Tourism is an individual activity of traveling and visiting places. In comparison, it’s less than 4% in the UK and even lower in the US! Many places in the world rely heavily on tourism as a key source of income and employment. Their role and significance increases as they are also one of the best brand ambassadors for any country. New areas of land need to be cleared for new hotels and roads. Let’s face it, the Philippines is a natural tourist haven, if only tourism were promoted in a better way! The third demand which is the main one and often supersedes these two is for bookings and reservation industry. The importance of tourism can be viewed from two perspectives: the tourism industry and the tourist. SIGNIFICANCE OF TOURISM • It is necessary for overcome the mounting stress and strain of modern life. As such, tourism is a product of modern social arrangements, beginning in western Europe in the 17th century, although it has antecedents in Classical antiquity. Inbound tourism helps to boost the economy of the host country as it offers several employment opportunities for the locals. Tourism, the act and process of spending time away from home in pursuit of recreation, relaxation, and pleasure, while making use of the commercial provision of services. We can understand tourism industry from the definition and description of tourism in the above section. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…. Whilst most media coverage involving tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again. And the tourism industry feeds off this. Travel and Tourism has the potential to make the world a better place – by bringing economic benefits to poorer destinations, through cultural exchange & understanding, and through self growth. High-quality educational, informative and occasionally humorous content. Tourism expenditures generate income to the host economy. You and your family can go on a beach clean up walk in Spain or do something similar in the UAE. The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. Save my name, email, and website in this browser for the next time I comment. The tourism industry can yield promising opportunities for international collaborations, partnerships and agreements, for example within the EU. Tourism brings people from everywhere in the world. Have you ever heard of an industry actually creating the demand? But what actually is an eco lodge? As the tourist visit different places of Nepal, they also come across and get to know about our culture by seeing different dances, hearing different songs, and celebrating festivals. So, when we try to define and structure tourism as an industry, we need to consider these limitations or should we rather say that tourism's unrestricted presence across various other industries. By now we have fully understood that tourism has a high economic importance as well as social and cultural significance, value and impact. Another reason for the importance of tourism is the preservation of heritage. Below are some examples of how stakeholders benefit from tourism, organised by economic, social, environmental and political gains; demonstrating the importance of tourism. For this we need to understand tourism definition & meaning, and its structure. This way it results in more and wide employment generation, more industry revenues, much more induced spending by those industries, much contribution towards taxes, etc. Socio-economic factors. This we discuss in out next point on value chain of tourism industry. Tourism as an activity is what creates the demand. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. Here we do not just list out points of tourism importance. This sector brings the developed, growing, developing and emerging economies, all on single platform, thus driving them to become competitive globally and improve on their level of services, at least to be tourism competitive. ©2021 Dr Hayley Stainton, all rights reserved. We live in a world where overtourism has become a real problem, animals are kept in captivity for peoples’ amusement and nature is deliberately destructed. Every single day. Tourism has become one of the major players in ‎international commerce, and represents at the same time one of the main income ‎sources for many developing countries. Hence, the standards or parameters of evaluation are international. The first most important task to handle is to stop the downfall and avoid any recession. But nowadays, things are very different. Travel introduces you to new experiences, new cultures and new ways of life. What is an industry? Taking this forward UNWTO defines 12 tourism industries that can be said to be serving the tourists in general. The importance of tourism can be attributed to the educational value that it provides. There are 5 importance of tourism industry. Below I will outline some of the social gains from tourism. Tourism contributes towards complete growth and development of a country: one, by bringing numerous economic value & benefits; and, second, helping in build country's brand value, image & identity. Often animals get into a conflict with people when protecting their territory or l… Because he or she is a traveler, meaning, they travel to various places for business and leisure. 5 importance and advantages of Tourism - Economic importance and socio-economic benefits of Tourism Tourism activity The contribution of tourism is in varied proportion and different for each country. Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.