Impact of Tourism in Economy Development-Free-Samples for Students

Question: Discuss about the Impact of tourism in Economy development. Answer: Introduction Tourism business has evolved amongst the significant services sectors in the global economy especially in the latest decades. Economic streams happen to be produced by the international tourism that has to turn into crucial aspects of the economic growth and the international economic interactions in numerous nations (Mowforth and Munt, 2015). For example, based on the World Tourism Organization (2010), as a result of the rise in the variety of destinations opening up and at the same time investing in the tourism development. New tourism happens to be the fundamental driver with regards to the socio-economic development throughout the creation of employment and also enterprises, progression of the infrastructure and the export revenues which are earned (Andereck and Nyaupane, 2011). Furthermore, the contribution of the tourism to the global economic activity remains to be estimated to be at around 5 % (Mowforth and Munt, 2015). The crucial of the tourism industry might be recognized further according to the latest statistic provided by the World Travel and Tourism Council. Based on the World Travel and tourism councils the recent economic effects report the direct industry contribution to the global GDP had raised by 3.3% in 2010 to one thousand and seventy-seven billion dollars and this is expected to rise much further by 4.5% in 2011. In this research, it aims to look at the impacts of the tourism in development of the economy (Andereck and Nyaupane, 2011). The study will be made of a component such as the project objectives, project scope, literature review, research questions, research design and methodology, research limitations, schedule and conclusion. Key terms: Tourism, economic growth, causality. Project objectives The research purpose is to study the impact of tourism on development in the economy. The research objectives that are to be achieved within this research is as follows; To study the benefits of the tourism development To analyze the negative economic impacts of tourism Project scope The project scope in this study it will cover the impact of the tourism in development economics. The research will include a view of the economic literature as the research purposes to fill the research gaps (Pratt, 2015). The scope of the study is not limited by any particular demography, but the findings will apply to the entire population. Literature review There has been a significant number of the studies which have been done on the tourism and also the economic development (Stylidis, Biran, Sit and Szivas, 2014). These types of research have been categorized as either individual country studies and even country group studies (Sharpley and Telfer, 2014). As a result of the limitation in the resource, the review has been limited to the recent studies. Currently, the significance of the tourism to the economy development has been highly underestimated (Ltkov and Vogt, 2012). However, the importance of the country economy could vary from place to place. Some of the countries usually rely on the tourism for the economic development as well as the growth of the nation (Pratt, 2015). The empirical studies result from the previous reviews in regards to the impact of tourism development in the economy are mostly mixed (Mowforth and Munt, 2015). For example, Cantavella-Jorda (2010), Lee and Chang (2008) find evidence which supports the tourism-led economic development hypothesis. The economically driven tourism growth hypothesis has been supported in studies by scholar Katircioglu (2009) and Lanza et al. (2003). benefits of the tourism development In contrast to a few of the environmental and socio-cultural effects, tourism effects are viewed to be advantageous in the following ways; Price and the income elasticity Leisure tourism is regarded as to be price and income elastic, thereby it is responsive to the economic conditions in each the host and the traveler generating countries. The price generally decreases and also increases in the destination countries (Mowforth and Munt, 2015). Moreover, the income also rises, and the income falls have a parallel impact. Foreign exchange Foreign tourists exchange their foreign currency into the local currency to pay for their tourism encounter (Andereck and Nyaupane, 2011). Consequently, the host country currently possesses more foreign currency so that they can spend on their very own needs, for example, providing much better medical in addition to educational facilities and in return stimulate the general economic development of a country (Pratt, 2015). Additionally, the balance of payments is viewed as the tourism expenditure which is equivalent to the export income to the traveler receiving countries. Diversification of the national economy The tourism sector over the years has been growing very fast over the last few years (Nunkoo and Smith, 2013). After surpassing the one billion international visitors in 2012, there is expected growth over one .8 billion by 2030 (Pratt, 2015). Tourism is developing faster compared to the global economy growth on its own is insufficient. The destinations along with their stakeholders are accountable for making sure that the growth continues to be managed well and the benefits are maximized (Fayissa, Nsiah and Tadasse, 2008). Multiplier effect As the cost of the tourism is processed by the local economy, the government utilizes the model of the economic impact to evaluate how the tourism has increased the number of the job opportunities especially in the area of the goods and the services consumption (Mowforth and Munt, 2015). Additionally, there is the federal and the local income, which is received from the tax revenue especially the burden of the transfer to the non-residents. Negative economic impacts of tourism The adverse effects of the tourism and residents reluctance in agreeing to the growth have ensured that the government role in the industry needs to be prolonged beyond the economic considerations in dealing with the environmental in addition to the social consequences of the development (Nunkoo and Smith, 2013). The diffusion of the sustainable development led the government in presuming considerably larger roles and responsibilities particularly in the planning of the tourism. The vast of the majority of the books, and papers which relates to the effects of the development problems and tourism emphasizes that there are significantly more associated problems than the advantages. An increase in propensity to import Growing the numbers of the tourist could lead to the rise in the requirements of the imports. Based on the research by Mowforth and Munt (2015), the demand by the tourist for the home comfort particularly to the overseas holidays such as; drinks and the food which are from their home country might enforce extra costs particularly to the host nations as it demands them to import this type of items for resale to the guests (Stylidis, Biran, Sit and Szivas, 2014). Seasonality the revenue and the income flows in most of the times could differ with the seasons. During the peak season the visitor number might be at certain destinations as well as attractions exceed their quietest periods of the figures of attendances (Mowforth and Munt, 2015). The decision concerning precisely what might be the maximum variety of the client which an attraction or maybe the tourist facility could cater for the difficult one, particularly to the large hotels and the theme parks. Leakages This is regarded as the loss in revenue which comes with the spending primarily toe newly obtained foreign exchange on the purchasing the foreign goods when considering the resale to the tourists (Sharpley and Telfer, 2014). Another kind of leakages consists of the savings that are possibly not spent by anyone for some years and just hooded for the future and lent by the banks. Social costs The loss in the culture continues to be identified as the inevitable cost that has been associated to the tourism and could include the lack of the language, exploitation of the traditional ceremonies and disruption of the natural political and economic balance (Sharpley and Telfer, 2014). Furthermore, crime can be related to the tourism development. Displacement effects Displacement could take place when the tourism development takes place at the expense of another industry. Additionally, it might be whenever a new tourism project takes the clients away from the real attraction rather than adding a number that could be adequate for the new guests to the local tourist destination to have the ability to justify the investment (Sharpley and Telfer, 2014). Research questions Primary question How does tourism impact the development of the economy? Secondary question. How has tourism benefited in the development of a country economy? What are the negative economic impacts which have been caused by tourism? Research design and methodology This study is conducted on the review of the present policy documents as well as published researches about impact of tourism in economic development on the economy (Mowforth and Munt, 2015). Just as much as there have been significant contributions to the economy, the development of the industry could lead to the adverse outcomes, for example, the conflicts between the residents and the developers. Quantitative method The research has utilized the quantitative and qualitative methods in which it has used web analysis and use of the empirical studies (Nyaupane and Timothy, 2010). There has been the use of the bibliographic speculative that utilizes the descriptive techniques in the processing of the data and interpretation of the result. The research adopted the case study research design. The case studies involve careful and complete observation of the social unit such as the institution, cultural group, and the community. This is the method of the study in depth rather than the breadth (Pratt, 2015). The case studies deal with all the processes which occur and their interrelationship. Case studies, are an intensive investigation of a given unit (Sinclair-Maragh, Gursoy and Vieregge, 2015). The object of the case study technique and evaluate how tourism impacts development on the economy. Qualitative method The qualitative used some numerical data which was collected to explain on the phenomena and the frequencies which sought to enable some explanations of the meaning, and it allows the research design which utilizes the research and the data analysis. Research limitations Notwithstanding the contribution which has been brought by this study there are also some limitations (Sharpley and Telfer, 2014). In this research, it has been taken from one of the industry which is tourism there is need to further on this study and comparison be undertaken on how the others impact to the development in the economy. Moreover, the use of the single industry has led to the generalization of the variables since there is no comparison of the various aspects. Another limitation of this research involved the issue of funding (Bhatt and Tang, 2001). This made the study not to be carried out extensively only to a few institutions within the tourism sector. There is a need to have a wider sample size to enable a comprehensive analysis of the data. Time schedule Timelines Mandatory tasks Target date Research of the topic 31/1/2017 Collection of the data 1/3/2018 Formulation of a project plan 15/3/2018 Revision of the project 31/3/2018 Editing of the project and Completion of the project 1/4/2018 Gantt chart The Gantt chart will provide a graphical illustration of a schedule for the project. Research of the topic Collection of the data Formulation of a project plan Revision of the project and Editing of the project Completion of the project 31/1/2017 1/3/2018 15/3/2018 1/4/2018 Conclusion Tourism has been a tremendous economic importance to the global economy. As mentioned in the research, the tourism sector has led to the increase in the GDP of various countries. The impact of the tourism in the economic framework of the populace is dependent on the labor-intensive nature of the several activities simply because it is accompanied with a gain in the activities of the tourist. The precise scope of the workforce in the tourism, particularly at the initial glance is a most reliable indicator of the economic significance of the tourism. The tourism is critical in the developed regions, since it is not merely certainly one of the activities but since it produces numerous jobs directly or maybe indirectly. Tourism provides an essential number of benefits to the economic impact to any nation or maybe locality that receive a steady flow of the visitors. The international visitors tend to be an effective source in relation to the foreign currency. At the same time, the spendin g of the domestic, besides the foreign visitors, offers cascading influences to the new money through the economy via the multiplier effect. A corporation is hence stimulated, and new jobs are created, in addition to the contribution to the increased government revenue. Nevertheless, there are many negative elements which should be looked at.The tourism business as a whole continues to be saturated with the leakages of the tourism revenue. This might be due to the pervasive tendency in preceding the long-term gain in search of the short-term profit. When it is thoroughly planned, and equity-oriented development in the tourism could aid the government in the building of the required infrastructure. Additional it could entail helping with the balance of the payments and generation of the foreign exchange that might be used in the development of a national social infrastructure.The real controversies have lied on the aspect of tourism environmental and socio-cultural effects. The touri sm environmental in addition to the socio-cultural consequences are viewed to have numerous benefits to the offset a few of the allegedly negatives impacts References Andereck, K.L. and Nyaupane, G.P., 2011. Exploring the nature of tourism and quality of life perceptions among residents. Journal of Travel Research, 50(3), pp.248-260. Bhatt, N. and Tang, S.Y., 2001. Delivering microfinance in developing countries: Controversies and policy perspectives. Policy Studies Journal, 29(2), pp.319-333. Fayissa, B., Nsiah, C. and Tadasse, B., 2008. Impact of tourism on economic growth and development in Africa. Tourism Economics, 14(4), pp.807-818. Ltkov, P. and Vogt, C.A., 2012. Residents attitudes toward existing and future tourism development in rural communities. Journal of Travel Research, 51(1), pp.50-67. Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge. Nunkoo, R. and Smith, S.L., 2013. 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