Economic and Social Benefits from Tourism

1. Employment creation: tourism is labour intensive industry. Employs a

higher % of women. The growth of ethical tourism has been a key recent feature
+ volunteerism
2. Export earnings: tourism is a service industry - generates important foreign
exchange earnings. An important source of diversification for many smaller
countries
3. Boost to aggregate demand:  creating local and regional income-
multiplier effects. Spillover benefits for suppliers of local foods/drinks; better
informed tourists
4. Accelerator effects from increased capital investment in tourism
infrastructure and services such as airlines and telecommunications

Tourism as a threat to sustainable growth and development

1. Exploitation of local labour by overseas transational tourist businesses, rapid

growth of sex industry in many countries. Many workers in tourism are migrant
workers suffering frm poor employment conditions
2. Outflow of profits from foreign-owned tourist resorts, manyresorts have few
locally-owned and run hotels. All-inclusive deals ignore the local economy.
Passengers from cruise ships have little direct effect on the local economy.
3. Externalities - from construction projects, congestion, waste, pressure on the
natural environment. Rising property prices makes housing less affordable for
local people.
4. Deepening pressures on local cultures from westernisation, the doubtful benefits
of slum-tourism

Background data on the global tourism industry:

 Globally, tourism is a $3 billion a day industry

 The income elasticity of demand for overseas travel and tourism is high
 According to a recent United Nations Report, in over 150 countries, tourism is
one of five top export earners, and in 60 it is the number one export
 Developing countries account for 40% of world tourism arrivals and 30% of
tourism receipts
 South-South tourism is growing rapidly – i.e. from developing to other developing
countries
 Women make up 70 per cent of the labour force in the tourism sector, and half of
all tourism workers are 25 or under
 There is growing pressure for inclusive tourism and sustainable tourism
investment