Positive Effects of Tourism in Developing Countries

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Positive Effects of Tourism in Developing Countries

BY
Ruby P. Autor

School of International Hospitality Management
WCC Antipolo, Rizal
October 15, 2012
Introduction
Tourism has been increasingly viewed as an alternative approach in economic and environmental development as well as in the aspect of social and cultural in developing countries. Combating poverty is probably the most leading problem that most of the countries in the world especially countries that is still in the process of developing (Bhutan, Haiti, Indonesia, Malta and Philippines). Compare to fully developed countries, developing countries suffer from the lack of funds to meet the needs of its people. Hence the government of these nations chooses tourism as a way to help their nation to prosper. This is because developing countries are mostly rural, and they possess natural physical landscapes and features that can be developed to attract foreign visitors. The purpose of this paper is to find out the different benefits of what tourism can bring to nations with a low living standard and to inform the readers the economic, social, cultural and environmental impact of tourism focusing only in least developed countries. This study will help the readers to identify the positive aspect and possibly come up a plan to establish a sustainable tourism development that will maintain the benefits and limit the negative effects of tourism in those countries. Though it is important that the negative effect should be included to fully understand and analyzed the problem this paper only limits on the positive effects of tourism in developing countries and narrowed down to the economic, social, cultural and environmental impact only.

Definition of terms
1. Tourism - according to World Tourism Organization (WTO) it is defined as the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes. 2. Developing country - is a nation with a low living standard, undeveloped industrial base and low Human Development Index (HDI) relative to other countries. Also known as third world countries and Least Developed Countries.

Economic
Tourism is firmly established as the number one industry in many countries and the fastest growing sector in terms of foreign exchange earnings and job creation. It also helps to contribute to the balance of payments by correcting the deficit of many countries through earning the much needed foreign currency in international trade. Zenaida commented that generating employment is perhaps the greatest advantage of tourism in developing economies. Globally in 2011, the travel & tourism economy (direct & indirect) employment is estimated at 254,941,000 jobs, 8.7 % of total employment. By 2022 this should total 327,922,000 jobs, 9.8 % of total employment. The tourism industry obviously generates income within the host country. According to The World Travel and Tourism Council the total contribution of tourism to gross domestic product is 6,346.1 USD in billion and rise to 9,939.5 USD in billions in the year 2022.

The growth of tourism creates a need for an improved infrastructure in developing economies. Thus it is not only to develop and improve infrastructures but it also helps the local citizens to benefit with the development for example improve roads helps the locals in outlying areas while airports may open up the economies of the remote regions.

Social
One of the most important benefits of tourism especially in developing countries is the social exchange of the host country and the foreign tourist. It helps them to understand one another not only in learning their languages but also in their own cultures. By social exchange it helps the poor nation to be encouraged to adapt to the...
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