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Economics of Tourism Industry

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Submitted By Dheeraj2901
Words 2463
Pages 10
This Project has been submitted by

Mr. Dheeraj K

Id No. 213031

On ECONOMICS I

During the MONSOON Semester 2014

The Economic Effects of Tourism Industry and Need for Sustainability

Dheeraj K
213031
II Year
Monsoon Semester (2014)
The West Bengal National University of Juridical Sciences
The Economic Effects of Tourism Industry and Need for Sustainability

The Tourism industry is one of the biggest contributors to the global economy. It is a fast growing and constantly expanding industry. The tourism industry has other associated industries it thrives on and this makes this one of the most important sectors of the economy. This paper seeks to examine the economic impacts of the tourism industry, track its growth and effect on the global scale and discuss the need for a sustainable growth.

Introduction

The Tourism industry encompasses all the firms, organizations and facilities which are intended to serve the specific needs and wants of the tourists. It is a booming and ever growing industry which currently constitutes 9.2 percent of the World’s Gross Domestic Product (GDP). In the post-world-war era, most of the developing countries had to turn to tourism to increase revenues and remedies for balance of payments deficits. The nature of demand and supply conditions of the tourism industry has also influenced its growth. The industry utilizes simple technology and resources like sunshine, existing scenery and manpower. The demand for tourism is ever rising; from 25 million international tourists in 1950 to 1.087 billion in 2013. The industry has been clocking nearly 5 percent increase every year. The UNWTO has forecasted a 1.8 billion international tourist forecast by the year 2030. As a result, the tourism industry has emerged as one of the biggest global industries. An industry of this magnitude has various economic impacts on the...

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