The Role Of International Tourism In The Global Economy Term Paper (Term Paper Sample)

Travel and Tourism in International Economic Development
The role of international tourism in global economy is outstanding. Many countries are giving much importance to develop tourism industry because it has its own importance in the world industries as a major industry. Tourism offers different opportunities to the country, e.g., employment generation, wealth generation, native people development, foreign currency generation, and reputation to nation, etc. The major advantage of tourism especially in developing countries is poverty reduction and native area people development (Reddy, et al. 2014).
The global importance of tourism is in three main forms, firstly, creation of jobs and wealth, secondly, contribution to sustainable development, and thirdly, provision of infrastructure.
Creating Jobs and Wealth
The importance of tourism in the world is that it consistently increases the influence of tourism on country’s economies. In the economies of separate countries international tourism plays a range of important functions. These include increasing inputs to the cash flow balance sheets and GDP of a country; contributing to the diversification of economy, by creating new sectors which provide services to the sphere of tourism; and acting as the source of foreign currency inflows to countries in addition to being a tool used to maintain work force employed.
In so far as job creation is concerned, tourism is the world‘s largest industry and creator of jobs across national and regional economies. Through tourism, tens of thousands of new work places are created and the problem of unemployment is solved. The jobs generated by the travel and tourism industry are spread across the economy - in retail, construction, manufacturing and telecommunications, as well as directly in travel and tourism companies. These jobs employ a large proportion of women, minorities and young people; are predominantly in small and medium sized companies; and offer good training and transferability. Tourism can also be one of the most effective drivers for the development of regional economies. These patterns apply to both developed and emerging economies.