Tourism is a major contributor to the global economy. It is a widespread industry that encompasses a variety of businesses such as accommodation, transportation, food, and beverage services, and entertainment activities. In this article, we will explore the extent to which tourism impacts the economy.
What is Tourism?
Tourism refers to the activity of people traveling to and staying in places outside their usual environment for leisure or business purposes. It involves various activities such as sightseeing, recreation, and visiting friends or relatives.
How much does tourism contribute to the economy?
Tourism is a significant contributor to the global economy. According to data from the World Travel and Tourism Council (WTTC), the travel and tourism industry’s contribution to global GDP was 10.4% in 2019. This figure includes direct contributions from hotels, airlines, travel agencies, and other related businesses.
Moreover, tourism supports millions of jobs worldwide. In 2019, travel and tourism accounted for 319 million jobs globally or one in ten jobs worldwide.
The Importance of Domestic Tourism
Domestic tourism refers to residents of a country traveling within their own country for leisure purposes. Domestic tourism plays a crucial role in supporting local economies by encouraging spending within a country’s borders.
According to the WTTC report on domestic tourism, it accounted for $3 trillion in spending in 2018 globally. Furthermore, domestic tourists tend to spend more on average than international tourists due to longer stays and more significant expenditures on transportation.
The Impact of International Tourism
International tourism is when people travel from one country to another for leisure or business purposes. The impact of international tourism on the economy can be significant since it brings foreign currency into a country’s economy.
According to data from Statista, international tourist arrivals worldwide amounted to approximately 1.5 billion in 2019. Furthermore, international tourism revenue amounted to $1.5 trillion globally in 2019.
The Negative Effects of Tourism on the Environment
While tourism can bring significant economic benefits, it can also have negative impacts on the environment. The increased demand for transportation and accommodation can lead to greater carbon emissions, overuse of natural resources, and damage to ecosystems.
Conclusion
Tourism is a significant contributor to the global economy, providing jobs and supporting local businesses. While it has many positive impacts, it is essential to consider its environmental impact and strive for sustainable tourism practices.