Tourism is an essential part of the global economy, contributing significantly to the GDP of many countries. The tourist industry includes various businesses such as transportation, accommodations, food and beverage services, entertainment, and cultural activities. In this article, we will discuss the percentage of GDP that comes from tourism.
What is GDP?
Before we delve into the topic of tourism’s contribution to GDP, let’s first understand what GDP means. GDP stands for Gross Domestic Product and is a measure of a country’s economic output. It represents the total value of goods and services produced within a country’s borders in a given period.
What is Tourism?
Tourism refers to travel for leisure or business purposes. It involves visiting different destinations outside one’s usual environment for a limited period. Tourists typically engage in various activities such as sightseeing, cultural experiences, and recreation.
Tourism’s contribution to GDP
The contribution of tourism to a country’s GDP varies from one nation to another. According to recent data published by the World Travel & Tourism Council (WTTC), tourism accounts for approximately 10% of global GDP. This figure includes both direct and indirect contributions.
Direct contributions refer to the money spent by tourists on tourism-related products and services such as transportation, accommodation, food and beverage services, recreation activities, etc. In contrast, indirect contributions refer to the money spent on other industries that support tourism such as construction, agriculture, retail trade, etc.
Tourism’s contribution by region
Tourism contributes differently across regions worldwide. According to WTTC data published in 2019:
- Europe: 9.5% of total GDP
- Asia-Pacific: 10% of total GDP
- Americas: 8.3% of total GDP
- Middle East: 8.9% of total GDP
- Africa: 8.5% of total GDP
Tourism’s contribution by country
Tourism’s contribution to a country’s GDP varies depending on the size of its tourism industry. According to WTTC data published in 2019:
- Spain: 14.3% of total GDP
- Thailand: 21.6% of total GDP
- Japan: 7.4% of total GDP
- USA: 7.8% of total GDP
- China: 11.1% of total GDP
Conclusion
Tourism is a significant contributor to the global economy, with many countries relying on it as a major source of income and job creation. While the percentage contribution to GDP varies across regions and countries, it is clear that tourism plays a crucial role in economic development worldwide.