Is Tourism an Industry or a Sector?

By Robert Palmer

Tourism is a vast and diverse field that encompasses a wide range of activities, products, and services. Owing to its multidimensional nature, the classification of tourism as an industry or a sector has been a subject of debate among scholars and practitioners for decades. In this article, we will explore the various arguments put forward by different schools of thought to determine whether tourism is an industry or a sector.

What is an industry?

An industry refers to a group of companies that produce similar goods or services. It involves the creation, manufacturing, and distribution of products or services that are sold in the market. Industries are characterized by large-scale production and consumption, which leads to the creation of jobs and economic growth.

What is a sector?

A sector refers to a broad category of economic activity that includes different industries. It involves all the activities related to producing goods and services within an economy. Sectors are often classified based on their contribution to Gross Domestic Product (GDP) and employment in the economy.

Tourism as an Industry

Those who argue that tourism is an industry point out that it involves the production and distribution of various products and services such as transportation, accommodation, food and beverage, entertainment, recreation, and travel-related retail. The tourism industry generates significant revenue for countries worldwide due to its high demand by consumers.

Moreover, tourism comprises several sub-industries such as eco-tourism, adventure tourism, cultural tourism among others. Each sub-industry focuses on unique aspects of travel-related experiences.

Sub-Industries in Tourism

  • Eco-tourism – Traveling in natural environments without causing harm
  • Adventure Tourism – Activities such as hiking or rock-climbing
  • Cultural Tourism – Involves learning about the culture of a place and the people who live there
  • Medical Tourism – Traveling to another country for medical treatment
  • Gastronomy Tourism – Exploring the local cuisine of a place

Tourism as a Sector

On the other hand, proponents of tourism as a sector argue that it comprises different industries such as transportation, accommodation, food and beverage, entertainment, recreation, and travel-related retail. These industries are interdependent and work together to provide a complete tourism experience.

Additionally, tourism is often classified as a service sector because it involves providing services to consumers. The service sector contributes significantly to GDP worldwide and employs millions of people globally.

Conclusion

In conclusion, whether tourism is an industry or a sector depends on how one defines these terms. While some consider tourism as an industry due to its large-scale production and consumption of various products and services, others view it as a sector that encompasses several industries providing services to tourists. Regardless of the classification used, tourism remains an essential contributor to economic growth and development worldwide.