Unveiling the Economic Magic: 5 Key Reasons Why Tourism is Classified as a Thriving Trade

Tourism is considered as a trade because it involves the exchange of goods, services, and experiences between tourists and host countries. It stimulates economic growth, creates jobs, diversifies economies, promotes cultural exchange, and encourages investment in infrastructure and amenities to cater to tourists’ needs.

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Tourism is considered as a trade due to its significant economic impact and the exchange of goods, services, and experiences that occur between tourists and host countries. This industry has been recognized as a major contributor to global trade, as it involves the movement of visitors across borders and the exchange of money for various tourism-related products and services.

Here are five key points to explore in more detail:

1. Economic growth: Tourism plays a vital role in stimulating economic growth in both developed and developing countries. It generates revenue from tourist expenditures, including accommodation, transportation, food and beverages, shopping, and attractions. As a result, tourism contributes to the overall economic development of a country.

2. Job creation: The tourism industry is a significant source of employment. It offers diverse employment opportunities ranging from direct jobs in hotels, restaurants, and travel agencies to indirect employment in related industries like construction, agriculture, and transportation. According to the World Travel and Tourism Council (WTTC), the travel and tourism sector supported 319 million jobs globally in 2018.

3. Diversification of economies: Tourism often presents an opportunity for countries to diversify their economies beyond traditional industries. By promoting the development of tourism infrastructure, countries can reduce their dependence on a single industry and create a more sustainable and resilient economy. This diversification can lead to increased foreign exchange earnings and a balanced economic growth.

4. Cultural exchange: Tourism facilitates cultural exchange by bringing people from different backgrounds and nationalities together. Travelers have the chance to experience and appreciate the unique cultural heritage of a destination, including its traditions, customs, arts, and cuisine. This exposure nurtures mutual understanding, respect, and appreciation among different cultures, contributing to global peace and harmony.

5. Infrastructure development: Tourism development often requires significant investment in infrastructure and amenities to cater to the needs of tourists. This investment can lead to the improvement of transportation networks, accommodation facilities, recreational areas, and public services, benefiting both tourists and local communities. Improved infrastructure can enhance the overall quality of life for residents as well.

To further emphasize the importance of tourism as a trade, I’d like to quote the late Nelson Mandela, who once said, “Tourism is the gateway to prosperity; it brings the world into our country, creating jobs, alleviating poverty and ensuring sustainable economic growth.”

Interesting facts about tourism:

1. According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals reached 1.5 billion in 2019.
2. France has been the most visited country in the world for several years, with around 89 million international tourists in 2018.
3. The tourism industry accounts for 10.4% of the global GDP, according to WTTC.
4. The concept of modern tourism originated in the 19th century when Thomas Cook organized the first recorded package tour in 1841.
5. The World Tourism Day is celebrated annually on September 27th to promote awareness of the importance of tourism and its social, cultural, political, and economic benefits.

Table: Economic Impact of Tourism in Select Countries

Country | Tourism Revenue | Employment Generated | Contribution to GDP

Spain | $82.2 billion | 2.8 million (direct) | 15.3%
Thailand | $57.5 billion | 8.3 million (total) | 12.2%
Mexico | $22.5 billion | 4.2 million (direct) | 8.7%
Australia | $59.8 billion | 1.1 million (direct) | 3.1%
India | $247.3 billion | 42.7 million (direct) | 9.2%

Note: The figures mentioned in the table are fictional and are provided for illustrative purposes only.

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Tourism can be considered as a trade because : It involves exchange and buying/selling of products. The products can be defined in terms of holiday packages , hotel rents, means of transport and hospitality etc. Exchange of cultures take place and these exchanges are in monetary terms.

Tourism can be considered as a trade because : It involves exchange and buying/selling of products. The products can be defined in terms of holiday packages, hotel rents, means of transport and hospitality etc. Exchange of cultures take place and these exchanges are in monetary terms.