Important of Tourism Industry Around the World

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Higher Diploma in Hotel Management
HOM 140 H
Fall 2008

“Importance of Tourism industry in Destinations around the world.”

An introduction to tourism:

The subject of tourism:
In historical terms, tourism activity is a relatively new development and only recently has it been considered worthy of serious business Endeavour or academic study. However, the tourism industry is of sufficient economies importance and its impact upon economies, environments and societies is significant enough for the subject of tourism to deserve academic consideration. There is no doubt in our minds that tourism is a subject area or domain of the study, but that at the moment it lacks the level of theoretical underpinning that would allow it to become a discipline. Tourism as a subject is showing signs of maturity with a growing academic community, increasing numbers of both journals and text books which are becoming specialized rather than all-embracing, and a number of professional societies both internationally and within individual countries.

Tourism destinations:
Because of the simultaneous nature of production and consumption within the tourism sector there are far more wide-reaching implications for this form of development than there are with many other development options. The presence of tourist brings with it environmental and socio-cultural impacts as the economic impacts. Therefore, the choice to pursue tourism as a development option needs to be made after considering all of the factors relating to its impact and the resources upon which tourism will draw. The main driving force that explains the rent less growth of tourism industry over the past century is the economic benefits associated with it. To understand the economic significant of tourism it is necessary to look at the structure of the local economy and the level of dependence that exists upon the income employment and foreign exchange earned form tourism. In order to understand the economic policy relevance of tourism to a destination it is necessary to turn attention to the economic impacts of tourism and their associated multiplier values. A simple tourism impact scenario illustrates. Let’s say a region attracts an additional 100 tourists, each spending $100 per day. That’s $10,000 in new spending per day in the area. If sustained over a 100 day season, the region would accumulate a million dollars in new sales. The million dollars in spending would be distributed to lodging, restaurant, amusement and retail trade sectors in proportion to how the visitor spends the $100. Perhaps 30% of the million dollars would leak out of the region immediately to cover the costs of goods purchased by tourists that are not made in the local area (only the retail margins for such items should normally be included as direct sales effects). The remaining $700,000 in direct sales might yield $350,000 in income within tourism Industries and support 20 direct tourism jobs. Tourism industries are labor and income intensive, translating a high proportion of sales into income and corresponding jobs.

In the tourism destination, the importance of environment as a resource for tourism and the difficulties created by its use as a ‘free’ input to the tourism product. Attention is brought to the fact that tourism tends to suffer from a negative environmental image whereas in fact it has both positive and negative attributes. A range of environmental issues is discussed in order to demonstrate the scope of the topic and its importance. The importance of not being simply focused on the direct environmental effects is stressed together with ways of looking at the indirect and induced environmental consequences associated with production in general and tourism production in particular. For example: An estimated 110 million people visit the national parks of England and Wales each year. Recreation and tourism bring visitors and funds into the parks, to sustain their...
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