Tourism has become a major industry in recent years, contributing significantly to the world economy. The industry has gained immense popularity due to its ability to generate employment opportunities, foreign exchange earnings, and economic growth.
But the question is, how much of the world economy is tourism? In this article, we’ll explore the answer to this question.
Understanding Tourism
Tourism refers to the activities of people traveling and staying in places outside their usual environment for leisure, business, or other purposes. It includes various services such as transportation, accommodation, food and beverage, recreation and entertainment activities, and other related services.
The Importance of Tourism
The importance of tourism cannot be overstated as it contributes significantly to economic growth in many countries around the world. It creates jobs in sectors such as hospitality, transportation, and retail. Additionally, tourism generates foreign exchange earnings that can help balance trade deficits.
How Much of World Economy Is Tourism?
According to the World Travel & Tourism Council (WTTC), travel and tourism’s total global contribution to GDP amounted to 10.4% in 2019. This figure translates to over $8.8 trillion in economic activity worldwide.
Furthermore, the WTTC estimates that travel and tourism directly supported 319 million jobs worldwide in 2019 – equivalent to one in ten jobs globally! This underscores the importance of tourism not only for economic growth but also for creating significant employment opportunities.
The Future of Tourism
Despite being severely impacted by COVID-19 pandemic-related travel restrictions since early 2020, experts predict that tourism will continue its upward trajectory as travel restrictions ease globally.
However, there are concerns about sustainability and over-tourism leading to environmental degradation and negative impacts on local communities’ culture and lifestyles. Therefore it’s essential for stakeholders involved in promoting and managing tourism activities always consider sustainability and social responsibility.
Conclusion
Tourism is a significant contributor to the world economy, generating employment opportunities, foreign exchange earnings, and economic growth. With the right policies and sustainable tourism practices, this industry’s potential is enormous, contributing positively to economic growth and development worldwide.