Economic Growth The Tourism Industry

(Part 2)

 

In this sense, some of the surplus spending power of the richer countries is through tourism redistributed to others. This is truer in the case of developing countries particularly the small countries, which depend heavily upon primary products such as a few basic cash crops where tourism often offers a more reliable form of income. the invisible earnings from tourism are of a major significance and have a very strong positive effect on the balance of payment that shows the relationship between a country’s total payments to all other countries and its total receipts from them.

Tourism can generate jobs directly through hotels, restaurants, transportations, souvenir sales and indirectly through the supply of products and services needed by tourism related businesses in accordance with WTTC, employment opportunities are expected to generate approximate 6.5 million new jobs in 2014.

The stimulation of infrastructure investment, tourism can enhance the infrastructure by creating water supply, airports, roads, public transportations and other public utilities, but are shared by other sector of the economy. Infrastructure development has the potential to benefit the local community and can aid economic development by allowing more trade and better flow of goods and services as well as the economic expansion in developing countries affects the tourism growth which is reflected by the development in infrastructure and tourism resorts (Ahmad, Somaye and Soraya, 2011). These can improve the quality of life for residents and facilitate tourism.

Therefore, tourism industry is a service business that plays significant role in term of economic development and economic stabilization in country. There are obvious benefits of tourism industry on economic sector that are to heighten economic growth and increase the number of entrepreneurs whether domestic or foreign, yet it can make more revenue into the country and increase rate of employment including the key economic benefits of tourism industry, tourists usually conduce towards sales, profits, jobs, tax revenues, and income in the country.

 

 

Tourism Industry