Tourism has become a popular global leisure activity. In 2008, there were over 922 million international tourist arrivals, with a growth of 1.9% as compared to 2007. International tourism receipts grew to US$944 billion (euro 642 billion) in 2008, corresponding to an increase in real terms of 1.8%. Here are the some of the reasons I feel that signify the importance of Tourism Industry in Economy of a nation -
- Perhaps the most important reason is the phenomenon of the multiplier effect, which is: How many times money spent by a tourist circulates through the economy of the country.
An example for the above could be as follows:
A tourist spends his money in the hotel by dry-cleaning his cloths, eating in the restaurant … etc. This money spent will increase revenues of the dry-cleaner and the restaurant owner, both will spend more on their supplies for their shop and for personal needs, which means that other businesses are going to benefit due to their increased profits by the tourist …and so on.
- The development of the county's infrastructure; as it is so important to attract visitors and to provide them with a memorable visit that will lead to a positive word of mouth and a chance of re-visiting the country again.
This also could be thought of from an employment angle, as the infrastructure needs buildings, services, and transportation means and ways, all which means increase in the number of jobs for the locals.
- Another important factor for the importance of tourism is attracting foreign investors to invest in the country by showing them high potentials and an acceptable infrastructure to their businesses, all of the above which will lead to the increase of country's GDP which means the development of the country as a whole.