local people get employment due to tourism ?
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Answer:
The high level statistics are often quoted. Tourism is a driver of job growth and economic prosperity, accounting for 1 in 10 jobs worldwide and delivering 1 in 5 of all new jobs created in 2017.
But dig deeper and the story gets more interesting still.
Speaking at the WTTC Global Summit in Buenos Aires recently, former President of Costa Rica Laura Chinchilla Miranda put it like this:
“Tourism equates to 27% of Costa Rica’s GDP. 80% of that benefits the lowest quintile and 60% of the jobs are for women.”
In short, the employment opportunities the sector provides tend to benefit those that need it most.
Tourism goes where other sectors often don’t
Take a tiny island nation like the Maldives. Tourism accounts for nearly 40% of all employment here providing livelihoods for thousands. Or a landlocked Himalayan kingdom like Bhutan. Tourism arrivals to Bhutan have risen from around 20,000 a year to nearly 160,000 in the last seven years, bringing over 30,000 new jobs to far flung places. Which other multinational industries are likely to invest in places like these? The Seychelles, Cape Verde, Cambodia, the list is long of small, often poor countries where the Travel & Tourism sector plays a leading role in providing jobs and income.
Tourism offers a large volume of low skilled jobs
The International Labour Organization estimates that 40% of the world’s unemployed are aged between 15 and 24 and after the 2008 financial crisis in places like Greece, over 40% of young people are out of work. The advance of Artificial Intelligence (AI) means these issues may well become more extreme. By its very nature Travel & Tourism is labour intensive. Many of the jobs it offers are all about working with people; they’re often low skilled so they are ideal for less developed countries where lack of formal education holds many people back. These are jobs that are also relatively well insulated from the impact of AI. Take the hotel sector. It provides on average one employee per room. Add on people indirectly employed too like guides, drivers, gardeners and laundry staff and that number rises to four. And around half of all employees in the hotel, catering and hospitality sector are under 25.
Tourism employs a disproportionally high percentage of women
In both developed and less developed economies, Travel & Tourism typically employs a far higher proportion of women than other sectors. Women make up over 60% of the labour force in the hotel sector. Not only are more women employed in tourism, they have more opportunity for advancement. In Bulgaria a recent study showed that women occupy 71% of management and administrative roles compared to just 29% in the country as a whole. In Indonesia, Malaysia, the Philippines, and Thailand, more than half of tourism businesses are run by women. The percentage is very similar across Latin America.
But there’s undoubtedly more that we can do:
Keep more tourist spend in destination
It’s not just the size of the pie, it’s the share of it. The growth of all inclusive packages in particular has led to much of the spend tourists make in resorts staying with the corporations that own them, rather than going to locals. This problem is often called Tourism Leakage. Estimates for Tourism Leakage range from 80% in the Caribbean to 40% in India. Governments and the industry need to work together to ensure ever larger proportions of the benefits from tourism trickle down to the local populations. A number of big brand hotel chains now pursue policies of buying local. Hyatt’s ‘Food. Thoughtfully Sourced. Carefully Served.’ programme is just one example. In the Bahamas, where estimates put tourism leakage at 85%, the hotel association and tourist board are working together to combat the problem. The Tru Tru Bahamian Marketplace project aims to help local entrepreneurs market themselves and sell their services to hotels and tour operators. In St Lucia, local farmers now use a Whatsapp group to sell their produce direct to local hotels. The result is fresher food and better menu planning for the hotels and guaranteed sales for the producers. Find out more in the video below.
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