Tourism, often underestimated, has the potential to meet the needs of many people living in the poorest parts of the world. It is the fourth largest industry in the global economy, generating around $1 trillion, and has a direct positive impact on locals.
When tourism emerged in the 1950s, it was European countries that benefitted most. Just fifteen nations received 98% of all international arrivals. However, by 2007, budgets had increased, and that number had fallen to 57%. Furthermore, tourism is a major source of income for 83% of developing countries that have become popular destinations, and one-third of the world's poorest nations depend on it.
The economic power of tourism has transformed many societies in recent years. Compared with other major global industries such as the fuel industry and chemical and car manufacturing, tourism often has more benefits for the people who live in the nation.
There are several reasons for this. Firstly, all the money spent usually stays at the point of production, in local bars and restaurants in the resort. There are often few foreign middlemen, so locally based hotels, restaurants, growers, and producers directly receive the income spent in the area, allowing more cash to stay within the region.
Secondly, many countries lacking the raw materials necessary for profitable industries like the fuel industry or agriculture can participate successfully in tourism if they have distinct history and traditions. They can use their unique characteristics to create income and give them an advantage where previously they might not have been able to compete.
Lastly, tourists have a broad list of requirements. Apart from a variety of hotels and restaurants, modern tourists also look for adventure sports and leisure choices. This enables tourist centres to form complex and varied supply chains of goods and services, which in turn means that there is a demand for people to train in a very wide range of skills. Many tourism jobs are also often seasonal, which allows workers to take on jobs in tourism alongside their existing occupation, such as farming.
Tourism encourages the development of facilities that everyone can use, which without doubt benefit the host nation. Improved healthcare, roads, sports centres, and high-end restaurants can be funded by foreign investment, but domestic tourism often also improves as a result. This helps to raise living standards for all.
The United Nations has identified the development of tourism as one of the methods poorer countries might use to meet half of the eight Millennium Development Goals (MDGs). The benefits of tourism are obvious for reducing poverty, creating jobs, and generating income for communities that often lack any other possibilities for employment.
Tourism also tends to produce flexible labour markets with a range of jobs, which can help to achieve another goal, promoting gender equality. Furthermore, if carefully managed, tourism can also be an important part of promoting a sustainable environment, protecting the natural, historical, archaeological, and religious sites. It can also foster effective global partnerships.