Tourism has become a significant contributor to the global economy, prompting many people to wonder if it is considered an export. The short answer is yes, tourism is counted as an export. In this article, we will delve deeper into what tourism entails and how it is categorized as an export.
What is Tourism?
According to the World Tourism Organization (UNWTO), tourism refers to “the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.” This includes a wide range of activities such as accommodation, food and beverage services, transportation, entertainment, and recreation.
Why is Tourism Considered an Export?
Tourism is considered an export because it involves the consumption of goods and services by visitors from other countries. When tourists visit another country, they spend money on various goods and services such as hotels, restaurants, transportation, souvenirs, etc. This spending generates revenue for the host country’s economy.
For instance, when a tourist from France visits India and spends money on hotels or local attractions like the Taj Mahal or Red Fort in Agra or food at local restaurants in Delhi- she/he contributes towards India’s GDP. While the tourist spends her/his currency in India- Indian businesses receive that currency which can be used to import goods or services from abroad.
In simple terms- when a foreigner visits a country and spends money there- it’s similar to exporting goods or services since the tourist is exchanging foreign currency for goods/services provided by businesses in that country. Hence tourism can be seen as an export of services.
The Importance of Tourism Exports
Tourism exports are essential for many countries’ economies because they help generate revenue while creating jobs and promoting economic growth. The UNWTO reports that international tourism receipts reached $1.7 trillion in 2018, and it is projected to continue growing in the coming years.
Tourism exports can also help diversify a country’s economy by creating alternative sources of income. Many countries rely on a few specific exports such as oil, minerals, or agricultural products. By developing their tourism industry, they can reduce their dependence on these limited exports and create a more balanced economy.
Conclusion
In conclusion, tourism is considered an export because it involves the consumption of goods and services by visitors from other countries. The revenue generated from tourism contributes significantly to many countries’ economies worldwide.
Additionally, tourism exports help create jobs and promote economic growth while diversifying a country’s economy. As such, governments should invest in promoting their countries as tourist destinations to reap the benefits that tourism exports have to offer.