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Assignment No. 01 Do You Think Tourism is a useful Industry to the World Economy? Why? Yes.

In the World, Tourism is one of the fastest growing industry and a strong contributor to sustainable development and poverty alleviation. Over 900 million international tourists traveled last year and it is been forecasts 1.6 billion tourists will be traveling around the World by the year 2020. Over the past six decades, tourism has experienced continued growth and diversification to become one of the largest and fastest growing economic sectors in the world. Over time, more and more destinations have opened up and invested in tourism development, turning modern tourism into a key driver for socioeconomic progress. Now Tourism is the largest industry passing Petroleum, Ammunitions and others. In 2007 the earning of Tourism in International wise $ 864 Billions. It increase 5.6% than 2006. Tourism also has become one of the major international trade categories. Today, the export income generated by international tourism ranks fourth after fuels, chemicals and automotive products. For many developing countries, it is one of the main income sources and the number one export category, creating much needed employment and opportunities for development. The Key Factors of Tourism in World Economy. Generating Income and Contribution to Government in GDP

In 2007 the earning of Tourism in International wise $ 864 Billions. It increase 5.6% than 2006. In 2007 nearly 903 million people travel around the world making $ 4.4 Trillion revenue through travel tourism activities. This contributes 10% to World GDP. In the 2020 nearly 1.6 Billion people are going to travel around making $ 8.6 Trillion revenue through travel tourism activities. This is nearly two times in the increase of Revenue and the contribution to the World GDP by Tourism is going to be 12%. Some Countries mainly depend in tourism activities in their Economy Such as Spain, Maldives & France. E.g.: Tourism Contribute 80% of Spains GDP. Create Employment Opportunities

Tourism is an Industry which is mainly depends on Human Resource because of the Nature of its business. It is the largest employer in the World now. The tourism creates 01 employment opportunity for every 09 tourists in the world. In the future while other sectors going in to depend on machinery due to technology development the Tourism industry will remain as same in the Human Resource because of the nature of its service. Worldwide, international tourist arrivals reached 903 million in 2007, up 6.6% on 2006 making more employment opportunities -1-

Assignment No. 01 Do You Think Tourism is a useful Industry to the World Economy? Why? Regional Developments

It helps to develop the area of the tourism destinations by making more revenue earning approach to local people in the region. Because of the tourists coming into region, the area people will involve in small scale business activities in production, marketing, services, promotions such as making & selling handcrafts & souvenirs of their region & country, guiding the tourists, restaurants and other various involvements. This will help to increase the per capita of the region and definitely reflect in the countrys GDP too. The governments mostly promote Community Tourism to archive these regional Developments. E.g.: Panama area Tourism Development Project by Sri Lanka Government Infrastructures Development

The tourism needs standard and quality basic structures for its development. The government and the private will take initial steps to develop the basic structure such as Roads, Hospital, Post Office, Police Station and vice versa structures to meet the international standards to fulfill the needs of International tourists visiting the country. This will not only help the tourist but also going to benefit the local residence of the region. For example in Beruwala Moragalla area was an undeveloped and small income generating village before tourism introduced to the area. Now Post Office, Police Station and other basic services are available all around this region and its growing day by day. Investments

The tourism needs superstructures to fulfill the needs of tourists coming to the region. As this activity needs more capital the private sectors will pump money to the tourism to earn more profits as it is the industry which makes the money double in small time period. Also the government will act as a National Tourism Organization (NTO) to promote the country as a tourist destination and also assure the Quality Maintain by the Private sectors & also play a roll as Supervisor to maintain the Quality of the Service provide by Private sectors. Most of the governments give special proposals to the private sectors to invest money into their country for tourism sector and to support to develop he infrastructure of their country. As a benefit offer the private sectors will invest their money in to the tourism. This will bring foreign money into the country and will make more and more employment opportunities and other benefit o the country which is involve in tourism sector.

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Assignment No. 01 Do You Think Tourism is a useful Industry to the World Economy? Why? Some facts about Tourism: From 1950 to 2007, international tourist arrivals grew from 25 million to 903 million. The overall export income generated by these arrivals (international tourism receipts and passengers transport) grew at a similar pace, outgrowing the world economy, exceeding US$ 1 trillion in 2007, or almost US$ 3 billion a day. While, in 1950, the top 15 destinations absorbed 98% of all international tourist arrivals, in 1970 the proportion was 75% and this fell to 57% in 2007, reflecting the emergence of new destinations, many of them in developing countries.

Current Developments and Forecasts International wise: Worldwide, international tourist arrivals reached 903 million in 2007, up 6.6% on 2006. Between 1995 and 2007 growth averaged over 4% a year, in spite of the stagnation between 2001 and 2003 due to terrorism, SARS and the economic downturn. International tourism receipts rose to US$ 856 billion (625 billion euros) in 2007, corresponding to an increase in real terms of 5.6% on 2006. Outbound tourism in recent years has been increasingly driven by emerging source markets. According to the UNWTO World Tourism Barometer of June 2008, tourism demand held up quite well in the first four months of 2008. Overall, international tourist arrivals grew at around 5% between January and April 2008 compared with the same period of 2007. By 2010 international arrivals are expected to reach 1 billion, and 1.6 billion by 2020. Tourism 2007 By Purpose of Visits

Tourism 1990 2007

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Assignment No. 01 Do You Think Tourism is a useful Industry to the World Economy? Why? International Tourists Arrivals 1950 to 2020

Source: World Tourism Organization (UNWTO)

Conclusion As you see in the figures & facts given by World Tourism Organization above in 2007, just over half of all international tourist arrivals were motivated by leisure while other travels for Business & Various other reasons. As in the future the amount of travelers is going to increase very quickly and it is going to Boost and expend the other related service industries such as Transport, Medical, Insurance & Miscellaneous related to Service Sector... This will make more revenue overall around the World and will make a need on Human Resources as Travel & Hospitality industries are mostly depend on HR. In the future this industry is going to be the No. 01 industry which will enable more vacancies in the World & will contribute more part on countries economy portfolio. Because of All these reasons I think & believe Tourism is going to More Important Industry than useful in World Economy. Also more developments will take place around the World to fulfill the needs of the Tourists roaming around the world in the Future. By Asfaq Mohamed asfaq@live.com

Student No 2008/DTTEHM/06

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