Assignment 1 – Individual Written Project
“Tourism and the Benefits it brings”
Class of / Group: BH6 / G1
Name: Ribka Marchella Limantara
Student ID: 0309243
Date of Submission: 8th November, 2012
Lecturer: Ms. Audrey Lee
The tourism industry is the “fourth largest industry in the global economy” (Honey, et al., 2009:1). In the last few decades, it has been considered to be one of the most rapidly growing industries. According to Tourism Highlights (2012), there had been a significant uninterrupted growth in the number of tourists travelling, from only 277 million in 1980 to 983 million in 2011. Tourism Highlights (2012:2) forecasts that in the next 18 years, “there will be continuous constant growth, with an average of 3.3% increase each year”. Accordingly, many countries in the world embrace the industry as this industry looks very promising in terms of generating revenue on long-term scale. In 2011, the industry itself contributed to “a total of 9.1% to the global GDP and is estimated to rise 2.3% by 2012” (World Economic Impact Report, 2012:2). However, there are many regional issues that arise due to the ever-expanding tourism industry. There are three principal impacts, which are economical, environmental, and socio-cultural. Both positive and negative impacts can be seen with our naked eyes. Tourism is the driving force of employment, revenue, and foreign exchange within many countries. In 2011, “the industry contributed 8.7% of total employment or 1 in every 12 jobs”. The tourism industry also “donated 5.3% of total exports through visitor exports”. Visitor export is the expenditures of non-local visitors in the host community. In terms of capital investment, “it contributes 4.9% of the total investment” (World Economic Impact Report, 2012:2). Moreover, these figures are predicted to be growing by more than 1.5% in 2012. It is unquestionable that the tourism industry brings about many benefits to various parties economically, from smallest communities to the biggest communities; either it is short-term or long-term effects. Countries in every part of the world, especially developing countries, struggle to develop their tourism industry by any means for the intention of improving their economic status. Kenya, which is famous for its ecotourism, “opened the first national park in 1947 and other industries based around the safari when it spotted the potential for tourism”. According to Tourism in the Developing World (2009), “tourism can help deliver peace and prosperity to developing countries”. All of the economical benefits are interlinked and interdependent of each other. One impact leads to other impacts on a bigger scale. The tourism industry encourages what is known as “the multiplier effect”. Tourism Multiplier Effect (2011) defines it as “how many times money spent by a tourist circulates through a country's economy”. For example, in the development of new hotels, not only are the hotel businesses at an advantage, but also the local farmers in terms of food supply, media outlets in terms of promoting the hotel, the government in terms of tax, and the locals in terms of employment. More people with jobs and stable income will lead to higher standards of living. More and more families living adequately, more families can afford better education and health services. This leads to lower literacy rate, lower immortality rate, and less people below the poverty line. Simply put, the tourism industry raises the overall revenue of a country and directs a country to a country with a better economic status. Consequently, the tourism industry has several negative impacts. These include over-reliance of one country to tourism. A ‘healthy’ country should have a diverse economy (Harcombe, 1999). The fact that tourism is the principal and solitary industry of a country is indeed unhealthy and will put the country at risk and at a vulnerable financial position as the...