Positive Impacts of Tourism Series – Part 2: Economy
In our first series on the positive impacts of tourism, we discussed the benefits to the environment. In part two of our series, we will focus on the positive impacts of tourism on the economy.
According to the World Tourism Organization, over 1.3 billion people traveled abroad in 2017. Undeniably, this sheer flood of visitors has far-reaching and everlasting economic impacts.
Also see:
Positive Effects of Tourism Part 1: Environment
The benefits of travel for travelers are clear, well documented, and undeniable. We get to explore foreign cultures, learn about fascinating histories, step back in time through ancient ruins, dig into flavourful cuisines, and get lost in a variety of picturesque landscapes that are sometimes too beautiful to put into words.
Of course, it’s not only travelers who benefit from tourism, but also the communities and the people who host the millions of globetrotters. The most obvious ways that host countries benefit from the economic impact of tourism are through the creation of jobs and the money that tourism brings.
The economic impacts of travel and tourism include creating jobs, contributing to better services for locals, and promoting social stability. The creation of jobs may result is the alleviation of poverty, fewer people resorting to crime, and higher levels of education if children know there is a brighter future to pursue. Tourism allows skilled or unskilled workers more ways of supplementing income – called diversification – which was otherwise not possible. This can be as simple as opening up your home for homestays, selling handicrafts, or becoming a food vendor.
Improved Services for Locals
The demand from tourism creates all sorts of local businesses that cater to tourists. These businesses also end up offering improved services for locals, which may not have been available previously. Services can range from internet availability, a wider range of foods and dining options, better health and safety services, a wider variety of transportation options, access to clean water, waste disposal facilities, new activities, and the list goes on.
Improved Infrastructure
Tourism can drive governments to make improvements to existing infrastructure and to create the much-needed infrastructure that may have never existed. If tourists want to travel to rural areas, transportation infrastructure may be improved upon, as well as the development of telecommunications. Other infrastructure improvements include water and sewage systems, electricity, health care, efficient public transit, telephone and public transport, which improves the quality of life and facilitates tourism in both rural and urban areas.
In recent years, the government of Trinidad and Tobago has spent millions of dollars improving beach infrastructure in popular and picturesque areas such as Maracas Beach. New and improved infrastructure will not only bring in new tourists (locally and internationally) but will also make visitors want to return. New beach facilities will include a car park, a new boardwalk, outdoor wash system, bathroom facilities, and a police booth.
Strong GDP
Tourism is one of the world’s biggest industries and it continues to grow. Its GDP surpasses oil exports, food products, and automobiles industries. The industry generates one in ten jobs worldwide, according to a 2017 report by the World Travel & Tourism Council. In 2016, the industry was responsible for a global economic contribution of over 7.6 trillion American dollars. According to the United Nations World Tourism Organization, tourism now accounts for 30% of services and exports worldwide.
In Thailand, for example, the total contribution of travel and tourism to the Thai GDP was over 82 billion dollars – or just over 20% – in 2016, according to the World Travel and Tourism Council. The GDP is expected to rise 30% by 2027.
Job Creation
In recent years, the travel and tourism industry has indirectly and directly created 10% of the total available jobs worldwide in the tourism sectors. The economic impacts of tourism are far-reaching, which isn’t always obvious.
Common employment opportunities created through tourism directly include those in resorts and hotels, restaurants, bars, transportation, tours and sightseeing, and adventure activities. Also, artisians, musicians, and entrepreneurs are able to build their own businesses around a steady stream of tourism. Platforms like Airbnb have made access to tourism-based entrepreneurship even easier.
Indirectly, all kinds of jobs are created due to tourism, which can include things like doctors in medical centers, engineers for creating new transpiration infrastructure, or police officers to maintain law and order.
Fighting Poverty and Empowering Women
Battling global poverty might be one of the most significant positive impacts of tourism on the economy. Women are in poverty in much of the developing world, and the tourism industry creates many jobs for both men and women, which can contribute to better gender equality and the empowerment of women.
For example, The Women on Wheels program in India empowers local women in Delhi by providing them with an 18-month program, where the women are taught how to drive a car, taught English, hospitality, first aid, communications, and self-defense. The program then works with the women by helping them obtain their professional chauffeur license, which is used to chauffeur solo female travelers in India. There are female-led enterprises all over the world – be sure to do research before leaving on your trip to see how (and who) you can help.
More on the positive impacts of tourism on the economy
Supporting Local
One major drawback to increased tourism to developing regions of the world is leakage. Leakage happens when visitors spend the majority of their money on flights, accommodation, transportation, and other services that don’t directly support local entrepreneurs. To be a responsible tourist, it’s important to pay attention to where you spend your dollars. Focus on supporting local businesses over international chains to keep money in the regional economy and be a part of the positive impacts of tourism on the economy.
Each year, the number of people traveling is steadily growing. Advanced technology, access to the furthest reaches of the world, an abundance of resources, increased knowledge and awareness, travel promotion on social media, and the ability to book flights and accommodation in the snap of the fingers have all promoted travel-enthusiasts to hit the road. The positive impacts of tourism on the economy should continue to expand in the future.
Written by Evan Ceretti
Evan has been around the world three times, each time developing an ever greater love for food. A vegetarian, Evan spends his time on the road seeking out the best meatless dishes in the world. Having received a diploma in journalism from Holland College, as well as a degree in print journalism from the University of Prince Edward Island, Evan now spends his time writing about gastronomic journeys from all corners of the world, in hopes of satisfying his own desires of seeing and eating and to help others do the same. When not doing any of the above, find him taking photos in his beautiful home city of Charlottetown, P.E.I., Canada. Follow his Insta @evanontheroad.