Question

essay on the role of tourism in the world economy in 300-400words

Answer 1

hey dear ,
Currently, the importance of tourism for an economy is highly underestimated. However, its importance to a country’s economy varies from place to place. Some countries rely on tourism 90% for the economic development and growth of their country, while others do not. But, when you consider it, most of the wealthy countries, such as, the US, France and England all have huge numbers of tourists and the countries make large amounts of money from this activity. Poor countries, no matter how they try to attract tourists, do not receive large amounts of money from this activity as there are fewer tourists who visit these countries. This shows that tourism is extremely important to a country’s economy.
Tourism, I believe, is the world’s largest income earner. It is a popular global leisure activity, and the arrival of international tourists in a country helps the country in many ways. One of these ways is foreign currency. Foreign currency is extremely vital to a country, especially to a developing country. Tourist expenditure generates incomes and helps stimulate investments which are necessary to finance growth. To make this more feasible, many host countries require tourists to bring in a specific amount of tourist currency when they visit. This currency is to be spent during the course of their holiday and is not allowed to be taken out of the country. This money then belongs to the host country, and it can consider these finances to consider growth in various other economic sectors.
The money brought in through tourism also contributes to government revenues. These can be categorized as direct and indirect contributions. Various taxes on incomes from tourists who come for business or employment and levies, such as, departure taxes are referred to as direct contributions. Any contributions from taxes and duties levied on goods and services supplied to tourists are referred to as indirect contributions. These taxes also improve the economy of a country.
An increase in tourism can also increase employment. Tourists need places to stay and places to visit. This factor significantly increases employment in the hotel and entertainment trade exponentially. More jobs are created to keep up with this increasing trend and business in the hotel trades, as well as, taxis, souvenir sales and restaurant trade will also see an increase in employment in order to keep up with these demands. An increase in employment is a definite upward trend to the economy of a country.
Governments, in order to attract and encourage tourists, can also consider developing their infrastructure. Governments ensure better water and sewage systems, better roads, better buildings, public transport networks. All these improve the quality of life for the residents of the country, as well as, tourists. These factors too encourage tourists to visit these countries enabling a better economy through tourist revenues.
The revenues from tourism are, most often, used to analyse and measure the economic value of a country. We can see for ourselves the drop in the economy when there are mitigating factors that affect tourism. For example, war brings down tourism, which affects the economy. Natural disasters too contribute to a drop in the economic revenue generated through tourism.
Tourism is an essential part of a country’s economic success. Increasing and encouraging tourism is definitely a way to consider economic success to a country.