Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Tourism Contribution To Global Trade And Economic Growth

India is blessed sufficiently with natural beauties ranging from the snow-abode Himalayas in the North to the sun-kissed beaches of the West and the incredible beauty of the East. Each area of the country offers a different practice with its own specific festivals and gastronomic cultures.

Photo Credit :

Tourism has developed as a key sector of the world economy and has become a major workforce in the global trade scenario. By making an innovative and significant impact on the world economy, Tourism has been recognized as the major export industry. The complex nature of this industry makes it a catalyst for economic development and helps in balancing regional development. It is a low capital, labor-intensive industry with an economic multiplier and offers an opportunity to earn foreign exchange at a low social cost. Tourism acts as an influential agent of both economic and social changes. It motivates employment and investment, modifies the economic structure and makes positive contributions towards wages.

The money spent by foreign visitors in a country is turned over several times. In this process, the total revenue earned from tourism is a number of times more than the actual spending. The multiplier effect of tourism earnings is completely recognized as spreading to secondary and tertiary ranges of the economic activities of a nation. It incorporates economic, social-cultural, educational and political significance. Marketing and promotion are of vital significance in tourism because of the competitive nature of the industry both within and between the generating countries. Tourism creates direct, indirect and induced employment. It produces a vast range of employment from highly qualified and trained managers of five-star hotels to room boys, salesgirls, and artisans. With its faster growth, new distances of employment open up for the unemployed and underemployed youth of the developing countries.

Tourism has been a major social occurrence of the societies all along. It is motivated by the natural desire of every human being for new experience, adventure, education, and entertainment. The inspirations for tourism also comprise social, religious and business interests. The increase in education has raised a desire to know more about different parts of the globe. The basic human thirst for new skills and knowledge has become stronger, as communication barriers are taken over by technological advances. Progress in air transport and tourist facilities have encouraged people to venture out to foreign lands.

Tourism’s importance, as an appliance for economic development and employment generation, particularly in remote and backward areas, has been well documented the world over. Tourism is the most important economic sector in India that has the possibility to grow at a high rate and can make significant development of destinations. It has the potential to inspire other economic sectors through its backward and forward linkages with sectors like agriculture, horticulture, poultry, handicrafts, transport, construction, etc. Expenditure on tourism encourages a chain of transactions requiring the supply of goods and services from these related sectors. The intake demand, originating from tourist expenditure, also makes more employment and generates a multiplier effect on the economy. As a result, additional income and employment opportunities are generated through such relationships. Thus, the growth of the tourism sector can lead to large scale employment generation and poverty relief.

India as a tourist destination exercises huge attraction from various perspectives. Tourism has appeared as a major industry of the Indian economy, contributing considerably to foreign exchange earnings and serving as a potential generator of employment opportunities. India is the largest democratic republic in the world with vast possibilities of growth in the tourism sector, with its vast cultural and religious heritage and varied natural charms. It is a land of contrasts, which varies from tropical lands to snow-covered mountains. It represents a diverse yet rare natural and cultural outward, which is the traditional symbol of India, i.e. ‘Unity in Diversity’. India is blessed sufficiently with natural beauties ranging from the snow-abode Himalayas in the North to the sun-kissed beaches of the West and the incredible beauty of the East. Each area of the country offers a different practice with its own specific festivals and gastronomic cultures.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Tags assigned to this article:
tourism

Mehul Sharma

The author is CEO & Founder of Signum Hotel & Resorts

More From The Author >>
sentifi.com

Top themes and market attention on: