Tourism is one of the major contributors to the world economy, with billions of dollars generated annually. In this article, we will explore the percentage of tourism in GDP and its significance.
What is GDP?
Gross Domestic Product (GDP) is the total value of goods and services produced within a country’s borders in a given period. It is used as an indicator of a country’s economic health.
What is Tourism?
Tourism refers to the activities of people traveling to and staying in places outside their usual environment for leisure, business, or other purposes.
Percentage of Tourism in GDP
The percentage of tourism in GDP varies from one country to another. According to the World Travel & Tourism Council (WTTC), tourism contributed 10.4% of global GDP in 2019. This figure is expected to rise to 11.5% by 2029.
In some countries, tourism contributes significantly more to their GDP than others. For example, in Spain, tourism accounts for around 14% of its GDP, while in Thailand, it contributes approximately 20%. Small island nations such as Maldives and Seychelles depend heavily on tourism for their economic growth.
Significance
The contribution of tourism to a country’s GDP goes beyond just revenue generation. It also creates employment opportunities, promotes local culture and heritage, helps build infrastructure and contributes to environmental conservation efforts.
Employment Opportunities: The travel and tourism industry employs millions of people worldwide directly and indirectly. The jobs created range from hotel staff to tour guides, taxi drivers, chefs, artisans and many more.
Promoting Local Culture: Tourism promotes cultural exchange between locals and tourists through food, music, art and other activities that showcase the unique features that make a destination attractive. This exchange helps preserve and promote local culture.
Infrastructure Development: The development of tourism infrastructure such as airports, hotels, restaurants and transportation systems not only serve tourists but also improve the quality of life for locals. This infrastructure can also be used for other purposes, such as business conferences and events.
Environmental Conservation: Tourism can contribute to the conservation of natural resources and wildlife by promoting sustainable tourism practices. This includes reducing waste, conserving water, using renewable energy sources and supporting conservation efforts.
Conclusion
Tourism is a significant contributor to GDP globally, providing employment opportunities, promoting local culture and heritage, creating infrastructure and contributing to environmental conservation efforts. It is important that countries continue to invest in their tourism industry while promoting sustainable tourism practices to ensure its long-term growth.