The percentage of income that comes from tourism varies across countries but can range from 2% to over 10%, depending on the level of tourism development and economic reliance on the industry.
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The contribution of tourism to a country’s income is a significant economic factor that varies widely across nations. Depending on the level of tourism development and the degree of reliance on the industry, the percentage of income derived from tourism can range from 2% to over 10%.
To shed further light on this topic, a quote from the United Nations World Tourism Organization (UNWTO) emphasizes the economic significance of tourism: “Tourism is one of the world’s leading industries and a major generator of jobs and wealth, contributing to the prosperity and sustainable development of destinations globally.”
Here are some interesting facts about the impact of tourism on a country’s income:
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Tourism can provide substantial revenue for both developed and developing countries. For some smaller nations, tourism can be a crucial economic lifeline, driving growth and employment opportunities.
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Islands and coastal regions tend to heavily rely on tourism. Destinations like the Maldives, Seychelles, and the Caribbean islands often derive a significant percentage of their national income from tourism due to their attractive natural landscapes, beaches, and watersports.
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In some countries, tourism plays a pivotal role in diversified economic sectors, such as hospitality, transportation, entertainment, and retail. For instance, countries like Spain, France, and Italy heavily depend on tourism for entrepreneurial growth and job creation.
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Tourism diversification efforts aim to reduce economic vulnerability by encouraging investments in sectors beyond traditional tourism. This helps countries to stabilize their income sources and protect against fluctuations in tourist arrivals.
Here is an illustrative example of the percentage of income from tourism in three different countries:
Country | Percentage of Income from Tourism
Spain | 14%
Thailand | 8%
Kenya | 4%
Please note that these figures are for illustrative purposes only and represent a snapshot of the situation, as the percentage can vary annually based on numerous factors like economic trends, political stability, and global events.
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Other responses to your inquiry
Tourism is an important sector in the global economy. Today, 10.4% of the world’s GDP and 7% of the world’s total exports come from tourism. The industry is worth over US$ 1.1 trillion.
Tourism is one of the major players in international commerce, and represents at the same time one of the main income sources for many developing countries. Despite the sharp annual increase, international tourism receipts worldwide stayed below pre-pandemic levels, amounting to roughly one trillion U.S. dollars in 2022. The United States of America has the highest total tourism income with over 210 billion $ yearly. Spain has the second largest tourism income in the World with almost 68 billion $ yearly, making up tourism 5.2% of the total economy. France is the third on the list with over 60 billion yearly tourism income.
Today, the business volume of tourism equals or even surpasses that of oil exports, food products or automobiles. Tourism has become one of the major players in international commerce, and represents at the same time one of the main income sources for many developing countries.
Despite the sharp annual increase, international tourism receipts worldwide stayed below pre-pandemic levels, amounting to roughly one trillion U.S. dollars in 2022.
List of Countries by Tourism Income
- United States of America has the highest total tourism income with over 210 billion $ yearly.
Travel and tourism accounted for 6.1 percent of the global gross domestic product (GDP) in 2021, denoting an increase over 2020 but not catching up with the figures reported prior to the coronavirus (COVID-19) pandemic. Overall, the total contribution of travel and tourism to the global GDP amounted to roughly 5.8 trillion U.S. dollars in 2021.
It’s actually a “best guess” scenario based on results of surveys of travelers and local travel-related businesses. Most cities know the average cost of accommodation. They also know when people travel they will eat out, go to museums and other attractions, and often buy souvenirs etc., So they are able to come up with an average daily amount spent per traveler. Multiply the daily spending amount by the number of visitors (which is also a guess, since day-trippers don’t have to register anywhere) and you can come up with an estimated number for tourism revenue.