Tourism is considered a trade because it involves the exchange of goods and services between tourists and tourism providers, generating economic activity and revenue for destinations. It encompasses various sectors such as transportation, accommodation, food and beverage, entertainment, and souvenirs, contributing to the local economy and employment opportunities.
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Tourism is considered a trade due to its significant contributions to the economy through the exchange of goods and services. It plays a crucial role in generating economic activity and revenue for destinations around the world. Let’s explore in more detail why tourism is considered a trade and its impact on various sectors.
Economic impact: Tourism stimulates economic growth by creating job opportunities and generating income for local communities. According to the World Travel & Tourism Council, the global tourism industry contributed 10.4% to the world’s GDP and supported 319 million jobs in 2018.
Exchange of goods and services: Tourism involves the exchange of various goods and services between tourists and tourism providers. This includes transportation, accommodation, food and beverage, entertainment, and souvenirs. These exchanges contribute to the local economy and promote trade between different regions.
Employment opportunities: The tourism industry is a significant source of employment, particularly in areas heavily reliant on tourism. From hotel staff, tour guides, to local artisans and vendors, tourism creates a diverse range of jobs for individuals with various skills and backgrounds.
Foreign exchange earnings: Tourism often attracts international tourists, leading to the influx of foreign currency into a destination. This foreign exchange helps strengthen a country’s economy by boosting its reserves, supporting local businesses, and funding infrastructure development.
Cultural exchange and preservation: Tourism allows for cultural exchange between visitors and local communities. This fosters mutual understanding, appreciation, and respect for different cultures. Additionally, tourism can serve as a catalyst for the preservation of cultural heritage sites, traditions, and crafts.
Quote: “Tourism is the number one industry in the world and is the gateway to peace and prosperity.” – Eunice Kennedy Shriver.
The United Nations World Tourism Organization estimates that by 2030, international tourist arrivals will reach 1.8 billion, nearly doubling the 2018 figures.
France maintained its position as the world’s most visited country in 2019, attracting over 89 million international tourists.
The tourism industry accounts for approximately 29.5% of the Maldives’ GDP, making it one of the countries most dependent on tourism.
The Great Barrier Reef in Australia is both a popular tourist destination and a crucial ecosystem, highlighting the delicate balance between tourism and environmental sustainability.
|Sector||Contribution to Tourism Trade|
|Transportation||Airlines, cruise lines, etc.|
|Accommodation||Hotels, resorts, rentals|
|Food and Beverage||Restaurants, cafes, bars|
|Entertainment||Theme parks, shows, events|
|Souvenirs||Local artisans, gift shops|
In conclusion, tourism is considered a trade due to its economic impact, exchange of goods and services, employment opportunities, foreign exchange earnings, and its role in fostering cultural exchange. The industry’s contributions are vast, providing benefits both to destinations and the visitors who experience them. Travel has become an integral part of global trade, impacting multiple sectors and promoting economic growth worldwide.
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Tourism is discussed in terms of its benefits to the economy. It creates employment opportunities in various sectors and supports local industries by sourcing goods and services locally. Additionally, supporting industries like retail and food production also benefit indirectly from tourism. Inbound international tourism promotes the consumption of domestically produced goods and services, further boosting the economy and creating jobs. It is emphasized that tourism should be seen as a positive sector that shares wealth and keeps people employed, while local governance should be diligent in handling potential downsides of excess tourism.
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Why is tourism considered as a trade? The exchange of commodities and services for money is known as trade. Tourism industry in the last few decades has grown exponentially as an important business sector.
Tourism is considered a trade because it promotes national integrity, provides support to local handicrafts and cultural pursuits, and contributes to foreign exchange. Tourism trade includes facilities, services, or activities relating to tourism, such as medical tourism, eco tourism, rural tourism, water tourism, caravan tourism, and adventure tourism. It also includes home stay, hotel, resort, wellness centre, visitor information centre, interpretation centre, water sports, boat house, way side amenity, and dormitories.
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