Tourism is a major industry that plays a significant role in the global economy. It generates revenue for countries all over the world, providing jobs and economic growth.
According to the World Travel and Tourism Council (WTTC), tourism accounted for 10.4% of global GDP and 319 million jobs in 2018. But just how much revenue does tourism generate? Let’s take a closer look.
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. This includes everything from visiting tourist attractions, staying in hotels, eating at restaurants, attending events and more.
How is Tourism Revenue Calculated?
Tourism revenue is calculated by adding up all the money spent by tourists during their trips. This includes spending on accommodation, food and drink, transportation, entertainment and shopping. The revenue generated from tourism can be divided into direct and indirect revenue.
Direct Revenue: Direct revenue refers to the money spent by tourists on goods and services that directly support the tourism industry. This includes hotels, restaurants, tour operators, transportation companies and more.
Indirect Revenue: Indirect revenue refers to the money generated as a result of tourists’ spending on goods and services that indirectly support the tourism industry. This includes suppliers of goods and services used by tourism businesses such as farmers who supply produce to restaurants or artists who sell their work to tourists.
Global Tourism Revenue
In 2018, international tourist arrivals reached 1.4 billion globally according to the United Nations World Tourism Organization (UNWTO). The total expenditure by these tourists was estimated at $1.5 trillion USD.
According to WTTC’s research on global travel & tourism economic impact, North America was responsible for generating $1.9 trillion USD in direct and indirect tourism revenue in 2018. This was followed by Europe, which generated $1.8 trillion USD, and Asia-Pacific, which generated $1.6 trillion USD.
Tourism Revenue by Country
Tourism revenue varies greatly from country to country depending on a range of factors such as the country’s size, population, natural attractions, cultural heritage and more.
For example, France is one of the world’s most popular tourist destinations and generates around $60 billion USD in direct tourism revenue each year. In comparison, a smaller country like Iceland generates around $5 billion USD in direct tourism revenue.
The Importance of Tourism Revenue
Tourism revenue plays a crucial role in many countries’ economies. It provides jobs for millions of people around the world and contributes to economic growth.
In some countries, tourism is the primary source of income. For example, in the Maldives, tourism accounts for over 60% of its GDP. In other countries like Spain, tourism accounts for over 14% of its GDP.
Conclusion
Tourism generates significant revenue for countries all over the world. It provides jobs and contributes to economic growth. By understanding how tourism revenue is calculated and where it comes from, we can better appreciate the impact that this industry has on our global economy.