Elizar Lloyd B. Alterado HTM103 BSHM – 2
Tourism Industry
Tourism industry is one of the most important sectors in economic growth and development
because of three factors: First, this industry has so much initiatives to generate much income
which adds more gross income to the economy. Second, it generates more employment which
can alleviate poverty. Last but the most crucial, it generates more foreign-exchange earnings
making the economy and even the country bigger and bigger. With all of these factors, the
tourism sector can play an important role as a driving force of economic development. The
impact this industry can have in the different stages of economic development depends on the
specific characteristics of each country. Given the complexity of tourism consumption, its
economic impact is felt widely in other production sectors, contributing in each case toward
achieving the aims of accelerated development.
Tourism industry by definition refers to all activity related to the short-term movement of
people to locations away from where they usually reside. It is one of the world’s largest
industries and the economies of many nations are driven, to a large extent, by their tourist
trade. It is also a wide-ranging industry, which includes the hotel industry, the transport
industry and a number of additional industries or sectors. It is vital to understand that the
tourist industry is linked to movement to different locations, based not only on leisure, but
also business and some additional travel motivators.
With that being said, according to the most common definitions, the tourism industry does
not cover activities related to travel where the person intends to stay in their destination for
longer than one year. As an example, this means that expatriates and long-term international
students are not technically classed as tourists.
References:
http://www.oas.org/dsd/publications/unit/oea78e/ch10.htm#:~:text=I.,%2C%20and
%20foreign%2Dexchange%20earnings.
https://www.revfine.com/tourism-industry/
https://corporatefinanceinstitute.com/resources/knowledge/economics/service-sector/
