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Importance of Tourism
Relation between the tourist as an individual
or a member of group and the social network
such as family, friend, neighbour, where the
tourist is seen as a representative of the home
reference group.
Social relations of the tourists group itself, its
composition, its tour programme and relations
with other groups it encounters.
Guest host relations including those who
serve the industry and the host population at
the destination.
When the tourist comes into contact with the places
he visits and its population, a social exchange takes
place. His social background affects the social
structure and mode of life of his destination, he is in
turn affected by it and sometimes carries back
home with him new habits and way of life. Travel
experiences often are among the most outstanding
memories in the traveller.
The early motivation of travel is regarded as cultural
and tourism is been a carrier for the cultural
propagation, which is necessary for a deeper
understanding of people and broadening of
Economic Importance of Tourism
Tourism is the one of the most important
aspect for developing countries.
Both domestic and international tourism
must be considered to evaluate the impact of
tourism on the economy.
To the host region/area travel provides a
basis for developing tourism as an export
industry, which means that the level of
economic activities of the area shall increase
through the sale of products and services to
the tourists.
Economic Importance of Tourism

Tourism provides foreign exchange without

exporting anything out of the country and it
provides more stable earning for the country
than any other industry.
It increases export earnings and a rate of
growth of the economy.
The income in the form of foreign exchange
earning from an invisible exports helps in off
setting the loss if any, which the country may
have from a visible export.
Economic Importance of Tourism
This balance of payments may also be defined as
a statement of income and expenditure on
international accounts.
Payments and receipts on international account
are of three kinds:
A) Visible balance of trade (relating to the export
and import of goods and commodities
B) Invisible items(relating to services such as
transport, shipping, banking, insurance)
C) Capital Tranfers
Economic Importance of Tourism
Apart from revenue increase the tourism also has
impact on employment generation.
Accelerate the development of an area.
The amount of visitors expenditure that remains
in an area and provides a source of income to
residents and businesses is called Direct effect
and this money is further paid to suppliers, wages
of workers and other items used in producing the
products or services purchased by the visitors is
secondary effect.

Economic Importance of Tourism

Tourism and Tax earning: The government of
almost all countries have always vested
interest in the financial gains through tourism
Depending upon the tax and fiscal policies
government derives substantial income from
tourism industries and direct and indirect
taxes are levied on different forms of income
and economic activities.