Importance of Tourism and its Economic Benefits

Importance of Tourism and its Economic Benefits

Tourism is the process of spending quality time away from home for recreation purposes, education, and pleasure. Tourism serves as a source of employment, national income to the destination, catalyst for socio-economic development of places concerned through social infrastructural amenities like electricity, water supply, transportation, and health facilities.

Tourism overlaps with various activities and interests and it gives rise to business tourism, international tourism, medical tourism, and pilgrimage. International tourism and pilgrimage have become an important economic activities. Tourism is a sector that plays an important role in the development of a nation and also helps generates foreign revenues.

Tourism plays a good role in a country’s economic development, government is now interested in tourism as ask invisible import and also a tool of diplomacy. It generates income that is beneficial to the host communities. It can also be used to improve infrastructure and promote more responsible tourism by raising funds. Tourism is all-encompassing and it has a lot of functions which includes:

  • Employment: it serves as a source of employment to the host communities. Tourism comes with hotels, tour companies, and restaurants. It supports other businesses of the people in the host communities. It allows people of the host communities an opportunity to meet people and also experience other cultures which broaden their knowledge and the quest to know more. It provides jobs to people with little or no education to function as tour guides.
  • Economic importance: Visitors’ expenditure generates income for the host communities and can mitigate poverty in countries that rely heavily on tourism. It financially supports the conversation of eco-system and natural resources management. It adds value to the local businesses. It also allows development in an economy by supporting the traditional industries with the money generated on tourism in case of financial pressure.
  • Infrastructure: The revenues that come in also benefit the government which means more taxes go to the government which is used for public projects to be developed. It improves the infrastructure with motorable roads, good internet, and electricity. The facilities make the tourism more special and it gives it high standard even though the residents enjoy the infrastructures more.
  • Foreign exchange generation: Aside from the fact that tourism generates income and creates employment, it equally helps a country overcome the balance of payment problem. International tourists who buy tourism services add value to the receiving country’s revenue accounts in that nation’s invisible transaction.
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These roles of tourism, in the economic development of a country can be properly utilised if the government and the bodies responsible for the country can work together to ensure that tourism in the country is maximised.

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