Benefits of Tourism Industry in Country.
The tourism industry is seen as promising sector for developing countries. Increased numbers of
international arrivals and gross tourist expenditures in hard currencies usually gives evidence of
successful growth through tourism in developing countries. International tourism arrivals to
developing countries have increased by 6.5 per cent annually since 1988, a higher rate than
average world growth of arrivals. Income through inter-national visitors is representing a large
component of international exports in the Least Developed Countries (Denman et al., 2004).
Tourism ranks first, second or third among all export sectors in 19 third world countries.
These data seem to support the hypothesis that positive macro-economic impacts in developing
countries can be achieved while promoting tourism as a competitive service sector.
Tourism industry has led to numerous job creations, for instance according to Almario et al,
(2006) many examples of self-employed poor in tourism are commonly seen in tourism
destinations: street vendors, massage, luggage-carriers, and shoeshine boys. Mostly these poor
are working on an irregular basis depending on the potential number of visitors and related sales
that can be made; mainly they are not producing but merely trading services or products. In most
destinations, self- employed poor combine tourism income with agricultural labour activities in
the off-season. Self-employed poor will hardly employ fixed assets nor accumulate capital. Their
business is not operating with a strategy but as a need to survival, entrepreneurial (marketing and
technical) skills and quality of service are usually no distinctive characteristics.
Sterren, (2006) further asserts that Self-employed poor have a permanent shortage of cash for
consumption purposes as well as maintenance of their business activity. Their income strategy is
based on meeting these shortages by whatever means. Boy cleaning cars at the national airport
will need enough daily sales to pay for new washing soap, as well as contribute to the family
income. The most urgent financial services needed are those that help to eliminate the shortage
of cash and provide for working capital.
There is a growing recognition that innovative approaches must be adopted in order to
maintain the economic health of a number of countries, communities and regions. While
conditions vary from region to region tourism has been seen as an important form of economic
development. It has also been promoted as a somewhat benign agent of economic and social
change, a promulgator of peace through interaction and dialogue, and a service-based
industry capable of creating employment and income. However, in countries and states with
budgeting tourism traffic, there is also an awareness and knowledge of the more intangible and
indirect economic costs of tourism. Experiences have shown that destinations can rise and fall in
popularity, driven by various factors in the destination’s internal and external catastrophe and
demand and supply-side problems. Tourism incorporates the conservation of the environment
and the presentation of the historical and cultural heritage of a people that makes leisure a
meaningful event (Ukene, 2003).
Tourism is all embracing; it involved the interaction of other components such as transportation,
communication, accommodation and destination among others. Sectors cannot be singularly
handled by the government as they constitute pillars of tourism development (Akpet, 2005).
According to Miga, (2006) for many developing countries, tourism is a significant vehicle for
economic progress that creates jobs, foreign exchange, and tax revenues - all of which contribute
in one way or another to improving poor people’s lives. While poor countries command only a
minority share of the international tourism market, tourism can make a significant contribution to
their economies, the United Kingdom Department for International Development (DFID).
Tourism can play a critical economic role in developing countries, especially for those
with limited income-generating alternatives Miga, (2006). Tourism is one the world’s fastest
growing industries, expected to overtake agriculture as the world’s largest industry by 2010. In
the past year, an estimated one out of every 13 workers was employed either directly or
indirectly by tourism, according to the World Travel and Tourism Council. In the year ahead,
the travel and tourism economy is expected to contribute $3.5 trillion to world GDP and
account for 11.6 percent (or $1.1 trillion) of total world exports, the council says.
Brief Description of Benefits of Tourism.
i. Generate government revenue, contributing funds for critical infrastructure and
improvements to health, social welfare, and education;
ii. Support the market for business travel: more hotel, retail, and conference capacity
iii. attracts business meetings, increasing business opportunities in a country and
revenue for local small businesses;
iv. Improve economic opportunity for small local suppliers, such as farmers, through
supply chain linkages;
v. Generate foreign exchange;
vi. Improve sustainable access to natural and cultural heritage sites.
