Tourism is undoubtedly one of the biggest industries in the world, with millions of people traveling to different parts of the globe for vacation, work or other purposes. But have you ever wondered why tourism is considered a business? In this article, we will explore the various reasons why tourism is a business and its impact on the global economy.
What Is Tourism?
Before we delve into why tourism is a business, let’s first understand what it means. Tourism can be defined as the act of traveling to different places for leisure, work or other purposes. It involves spending time away from home and engaging in activities that are not part of your daily routine.
Why Is Tourism a Business?
Tourism is considered as a business because it involves several economic activities such as:
1. Employment Generation:
Tourism creates job opportunities for millions of people worldwide.
From hotel staff to tour operators, travel agents to taxi drivers, there are numerous job roles that are directly or indirectly linked to tourism. According to the World Travel and Tourism Council (WTTC), tourism supports one in ten jobs globally.
2. Revenue Generation:
Tourism generates significant revenue for countries through various channels such as accommodation, transportation, food and beverage sales, entertainment and attractions. In fact, according to the WTTC, travel and tourism contributed $8.8 trillion to the global economy in 2019.
3. Infrastructure Development:
To attract tourists, countries invest heavily in developing their infrastructure such as airports, roads, hotels and tourist attractions. This further stimulates economic growth by creating opportunities for construction companies and other related businesses.
4. Foreign Exchange Earnings:
Tourism also generates foreign exchange earnings which can boost a country’s economy by strengthening its currency value and reducing its dependence on imports.
The Impact of Tourism on the Global Economy
Tourism has a significant impact on the global economy. It is estimated that travel and tourism account for 10.3% of global GDP and 330 million jobs, according to the WTTC. Moreover, tourism is projected to continue its growth trajectory and contribute $12.4 trillion to the global economy by 2028.
However, the COVID-19 pandemic has had a devastating effect on the tourism industry, with many countries closing their borders and imposing travel restrictions to contain its spread. According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals declined by 73% in 2020 compared to the previous year.
The Future of Tourism as a Business
Despite the current challenges facing the tourism industry, it is expected to make a strong recovery once travel restrictions are lifted and people feel comfortable traveling again. In fact, many experts predict that there will be a surge in demand for travel once it is deemed safe.
Furthermore, with increased awareness of sustainable tourism practices, there is an opportunity for businesses in this sector to adopt eco-friendly measures that can benefit both their bottom line and the environment.
Conclusion
In conclusion, tourism is not just about leisure and fun; it is also a major business sector with significant economic impact across various industries. From employment generation to revenue generation and infrastructure development, tourism plays a crucial role in stimulating economic growth worldwide. The COVID-19 pandemic may have put a temporary halt on this industry’s growth, but with renewed focus on sustainable practices and safety measures, we can expect tourism as a business to bounce back stronger than ever before.