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Tourism and World Economy

Economy

      It is the natural instinct of the people that whenever they get some vacations or free time, they want to visit some different beautiful and historical places to get some peace of mind. People find it convenient to explore the beauty of nature and history in order to get rid of boredom which occupies them from their daily routine. In various parts of the world there are different cultures which these tourists explore. This movement of tourists from one country to another country or from one region to another region not only contribute to the soft image of the receiving countries but also contribute to the world economy. Those countries which have properly organized tourism sector earn billions of dollars on yearly basis. For instance, China is the big attraction spot not only for international tourists but also for local tourists. The reason behind this is that China is a big hub of arts, old civilization and modern advanced architecture and skyscrapers. In 2018, China earned $40 billion just from international tourists. One would be shocked to know that China earned $402 billion in tourism sector just from domestic tourists. This is because China has a big population of more than 1.3 billion which contributes heavily to its tourism sector. In addition to this, Chinese tourists contributed overseas $130 billion in tourism sector and the credited still goes to its large population. Similarly, if one examines the tourism sector of its neighboring country India then the fact will come to light that India earned approximately $30 billion form tourism industry in 2019 alone. The scenario is same for the emerging economies like Singapore and Malaysia. The main argument is that emerging economies find it convenient to explore their tourism industry in order to increase their revenue because this sector requires small investment with big benefits.

However, the above-mentioned data just represents the pros of tourism sector at national level but the benefits of tourism sector is multiple if one analyzes the whole process from various angles. For instance, tourism sector roughly contributes to 10% of GDP which is approximately round about $8 trillion. This shows that this sector contributes a hefty amount in sustaining the world economy. Secondly, tourism sector has created jobs for millions of people around the globe. Alone in 2017 the tourism sector supported 313 jobs. This shows that 1 out every 5 jobs which comes into being is tourism sector. Mostly in developing countries, a large chunk of population is directly or indirectly related to the tourism sector. Now, the emerging or developing countries are adopting the tourism models of advanced countries. For instance, almost dozen African countries have started a joint tourism venture in which a tourist will be visited all these countries in a train in just $17000. This economic intermingling is not limited to these countries only because it is driving the whole world economy into circulation. This is a win to win situation for all.

Another positive aspect of tourism is that it brings new opportunities for the recipient countries. This is because when one country tries to implement a particular tourism model then it also put its focus on the domestic infrastructure development to support the tourism industry. For instance, a good tourism sector cannot flourish without the five-star hotels, smooth highways, efficient transport backup, fast internet availability in mountain areas and tourist guiders for the tourists. So, when some country starts to work on these infrastructure developments projects then it not only attracts FDI from foreign countries but generates jobs for local and foreigner masses. This ultimately drives the world economy. This shows that tourism sector works from all level playing fields. Another handsome contribution of tourism sector in world economy is from air lines industry because air line companies play an important role in moving tourists between multiple countries. These air line companies generate billions of dollars for their respective countries which ultimately contributes to the world GDP. The revenue forecasts of global airline industry were $835 billion in 2019 and significant portion in this revenue is of tourism industry. Besides this, the expansion in global airline industry due to tourist sector has also created millions of jobs all over the world.

Tourism sector is also considered as the tool to create a soft image of the state abroad because it is also considered as the soft power in modern diplomatic world. Any country can totally change the opinions of the foreign tourists through its tourism presentation and model. Because these foreigners on their way back play an important role in constructing the public opinion regarding that country. In these modern days, travelers or tourists express their opinions regarding the recipient country after making vlogs on YouTube. This activity speedily attracts the other foreigner people. For instance, India significantly spread its soft image abroad through its tourism sector that it is an emerging economy of this century. Similarly, China also created its soft image abroad through tourism sector that it would be the new economic super power and the country would achieve this goal through peaceful means.

Now, the latest problem associated with the tourism sector is a world pandemic coronavirus. This is because corona virus has already halted the global activities. The first blow came when different countries started to ban the air travels to prevent the spread of disease. Initially, when China was the only victim then several European countries and US announced the travel ban from and towards China. This costs billions of dollars to the Chinese tourism industry. Gradually, with the passage of time when the disease entered into almost every country then this led to the global travel ban between different countries. This not only cost billions of dollars to the individual countries but it also gave the blow to world economy and airline industry. According to the report of UNWTO, due to corona virus the global travel percent has fell by almost 20% to 30%. Besides this, more than 13 million people related to tourism sector are on the verge of losing their job. But there is still hope that soon the pandemic will over and the tourism sector will contribute in reviving the world economy.

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