3. Importance of tourism arises from the numerous
benefits and advantages it brings to any host
country. But real importance of tourism comes
from its natural and how it is defines and
structured. And this is what we will explained here
. Tourism contributes towards complete growth
and development of a country; one, by bringing
numerous economic value and benefits; and,
second; helping in building countries brand value,
image and identity. Tourism industry goes beyond
attractive destinations, to being an important
economic growth contributor.
4. Tourism is very interesting to understand. It is
an activity, an industry and an important
growth driver for a country, its economy and
also for its social progress and monitoring.
Tourism no doubts brings with it tremendous
economic value for a country. It touches and
impacts several industries directly and many
more indirectly through tourism spend.
Tourism is one of the important source
employment generation and foreign exchange
earnings for a country.
5. Due to all this tourism gains much more
economic importance for any country or at
the global level. Tourism becomes an activity
which builds the base for the wild scale
consumption bringing far reaching benefits.
Tourism gains importance as an activity which
has far reaching positive impacts on
industries, economy, society, and therefore for
the whole growth, progress and development
of the country.
6. The UNWTO (The World Tourism Organization
of The United Nation) refers it as tourism
sector which is made of several tourism
focused industries that normally offer tourism
characteristics products and services. Taking
this forward UNWTO defines 12 tourism
industries that can be said to be serving the
tourists in general. These industries are:
1. Accommodation for visitors
2. Food and beverage serving activities
3. Railway passenger transport
4. Road passenger transport
7. 5. Water passenger transport
6. Air passenger transport
7. Transport equipment rental
8. Travel agencies and other reservation services
activities
9. Cultural activities
10. Sports and recreational activities
11. Retail trade of country- specific tourism
characteristic goods
12. Other country- specific tourism characteristic
activities
8. Why tourism is important in the world and how
it creates development
Tourism first creates demand as an activity and
then fulfills that demand as a group industries.
Tourism is an individual activity of traveling and
visiting places. The tourists and travelers who
visits different tourist places make those
popular. This way they bring earning
opportunities. They also encourage
development of those places, the nearby places
and in fact the whole country or region to
facilitate growing tourist activities.
9. This is the unique aspect of tourism as this
creates demand for economies on global scale
and more importantly for each country and even
goes deeper in creating demand and growth
opportunities at city level and local level for
various communities.
Tourism is also a commercial activity because the
whole tourism process involves consumption of
services and products. Hence tourists become
highly important as they are growth drivers and
brand ambassadors. This highlights the
importance of tourists and significance of their
roles for economies and countries.
10. Tourism adds to the consumer population of a
country who for a short period of time do
almost all of the things that consumes most of
the services and products which a country’s
native population or consumers do.
There are five importance of tourism industry.
These are also the advantages of tourism and
are actually its five basic characteristics which
signifies the tourism importance for
economies, for countries and their societies,
and at the global scale.
11. Due to these five factors only tourism creates
demand, fulfills that demand, increases
consumption, brings growth and development
to countries and economies.
1. Tourism activity creates demand.
2. Tourism industry value chain meets and
spreads demand across industries and boosts
more economic activities.
3. Tourism requires countries wholesome
development.
4. Motivates to reach global standards .
5. Tourism induces more consumption.
12. 1. Tourists creates demand
Tourism is one such industry or sector that
creates demand first. This is due to it being
an individual and commercial activity. The
whole activity of tourism is basically a 3 step
process of needs and demands.
13. a. Tourist attraction and travelling.
There are two basic needs that fuel the
demand for tourism. One is the curiosity,
desire or need to visit and see different
tourist places; know, experience and see
natural wonders of places , cultures etc.
Second is to travel. Need for travelling is to
satisfy the desire to see tourist places and
could be due to the desire to just travel;
spend leisure time or holydays in different
places etc. All these needs create global and
regional level demand for travel and
transportation services and products.
14. b. Local tourism and stay
Here specific need for stay and accommodation,
food and beverages, local travelling & touring
and other recreational or fun activities. This is
how tourists create country and & local specific
demand.
15. c. Ancillary activities.
When tourists go visiting places they might do so
many other things like go shopping, visit other
local places, eat out, buy retail products or many
other services. They are not specifically tourism
activities yet, they add to the existing demand for
many industries. This way tourists also produce or
help in creating additional or induced demand for
many other related and not so related industries.
16. Tourism bonds many more industries beyond its
value chain.
It could include services from local restaurants,
local food joints and places to eat ; environment
places cinemas and theme parks or cultural or
sports activities; and may even include retail
product and services; shopping malls; or
electronics and telecommunications, production
and services. All these services and their
respective industries are part of tourism and
collectively from the tourism industry value
chain.
17. The 12 industries listed by UNWTO broadly
define and describe tourism industry value
chain. According to the typical process a
tourist takes when going for a tour , we can
rearrange those 12 industries in the following
way:
Primary Activities
1. Travel agencies and other reservation
services activities.
2. Railway passenger transport
3. Road passenger transport
4. Water passenger transport
18. 5. Air passenger transport
6. Accommodation for visitors
7. Food and beverage serving activities
8. Transport equipment rental.
Secondary activities
9. Cultural activities
10. Sports and recreational activities
11. Other country- specific tourism
characteristic activities
12.Retail trade of country- specific tourism
characteristic goods
19. Tourism brings development
This is the reason which perhaps makes tourism
much more important than any other industry.
Tourism actually helps in and contributes towards
development and well being of societies. In order
to consistently attract new tourists , to establish a
strong inbound tourism market and to sustain
tourism growth a country needs to do lot of
things. Tourism growth for a country is
somewhere synonym to overall growth and
development of that country and to the safety,
healthiness, openness of the country as a society.
A country also needs to create improved
infrastructure for its citizen and tourists alike.
20. For years World Economic Forum(WEF) has
been monitoring tourism competitiveness of
countries and their progress and growth
towards being a competitive inbound tourism
market . They do this by evaluating countries
across parameters which they have created
and they monitor it through the Travel and
Tourism Competitiveness Index( TTCI ).
According to WEF the TTCI measures the set
of factors and policies that enables the
sustainable development of the travel and
tourism sector, which in turn , contributes to
the development and competitiveness of a
country.
21. Tourism brings many benefits , including but not
limited to the following few
1. Growth and boost in economic activities
2. Boost wide scale industry revenues
3. Infrastructure development
4. Countries improved brand image
5. Source of foreign exchange earnings
6. Source of employment generation
7. Connectivity and growth to local, regional
and even the remotest areas.
8. Global connectivity.
22. 9. Improvement in infrastructure and living
standards
10. Cultural growth
11. Betterment of society
12. Introduction of new technologies
Over the decades, tourism has experienced
continues growth and deepening diversification
to become one of the fastest growing economic
sectors in the world. Modern tourism is closely
linked to development and encompasses a
growing number of new destinations. These
dynamics have turned tourism into a key driver
for socio-economic progress.
23. Today , the business of volume of tourism
equals or even surpasses that of oil exports ,
food products or automobiles. Tourism has
become one of the major players in
international commerce , and represents at
the same time one of the main income
sources for many developing countries. This
growth goes hand in hand with an increasing
diversification and competition among
destinations.
24. This global spread of tourism in industrialized and
developed states has produced economic and
employment benefits in many related sectors-
from construction to agriculture or
telecommunications.
The contribution of tourism to economic
wellbeing depends on the quality and the
revenues of the tourism offer. UNWTO assists
destinations in their sustainable positioning in
ever more complex national and international
markets. As the UN agency dedicated to tourism
UNWTO points out that particularly developing
countries stands to benefit from sustainable
tourism acts to make this reality.
25. The travel and tourism industry is one of the
world’s largest industries with a global
economic contribution of over 7.6 trillion US
Dollars in 2018.The direct economic impact of
the industry including accommodation ,
transportation , entertainment and attractions
was approximately 2-3 trillion US Dollars that
year. A number of countries, such as France
and US are consistently popular tourism
destinations , but other , less well known
countries are quickly emerging in order to
reap the economic benefits of the industry.
27. Arrivals by world region
• It shows how tourist arrivals have increased since
shortly after the Second World War in 1950.
• The United Nations World Tourism Organization
(UNWTO) estimates that internationally there
were just 25 million tourist arrivals in 1950. 68
years later this number has increased to 1.4
billion international arrivals per year. This is a 56-
fold increase.
28.
29. International arrivals by country
The map shows the number of tourists by
country. France is today the country that
receives most tourists
30.
31.
32. The main aim of the paper is to show how the
travel and tourism industry are changing and
developing in the world. It is one of the industry
and world’s great industrial sector. It drives
economic growth , creates jobs , improves social
development and promotes peace. Hundreds of
millions of people around the world are
dependent on the sector for their employment. It
is a diverse sector consisting of millions of
companies and employers , from the biggest
global travel brands to the smallest tour operator
or hostel owner. Together a formidable force with
a voice to be heard at the highest level of society
and government.