Why Is Tourism Important?

 Why Is Tourism Important?

For decades, Pakistan tour packages tourism has experienced continuous growth and deep diversification, becoming one of the fastest growing economic sectors in the world. World tourism is closely linked to development and a growing number of new destinations are entering it. This dynamic has made tourism a key driver of socio-economic progress.

Today, the volume of tourism business equals or even exceeds that of exports of oil, food products or automobiles. Tourism has become one of the main players in international trade, and at the same time represents one of the main sources of income for many developing countries. This growth goes hand in hand with increased diversification and competition between destinations.

The general expansion of tourism in industrialized and developed countries has been beneficial, in economic and employment terms, for many related sectors, from construction to agriculture to telecommunications.

The contribution of tourism to economic well-being depends on the quality and income that tourism offers. UNWTO helps destinations to position themselves sustainably in increasingly complex national and international markets. As a United Nations agency dedicated to tourism, Naran Kaghan Tour Packages UNWTO insists that developing countries can especially benefit from sustainable tourism and acts to do so.

How economically important is tourism?

The economy and tourism of a country are closely related to each other. General economic factors have both positive and negative effects on tourism.

general economic factors of tourism

The positive influence factors are:

  • Growth of effective income , with an increase in effective resources, consumers get more money at their disposal, thus increasing the demand for tourism.
  • A more equitable distribution of income , the more uniform the distribution of income in society, the more people will be able to buy a tourism product.
  • Stability of the currency market , if the exchange rate of currencies is stable, the population can buy them in greater quantities, and it is easier to plan vacations in this situation.

The factors that have a negative impact on tourism are:

  • Economic crisis phenomena
  • Rise in unemployment, wage cuts, etc.
  • Unstable situation with the currency, if the exchange rate of the currency is high, the population can buy it less, which means that a tourist trip abroad will cost much more.

Economic impact of tourism

Tourism has a great effect on the economy of the region in which it is developed. Three main directions of the impact of tourism on the life of society can be distinguished : economic, social and humanitarian .

The importance of the tourism economy

As an economic phenomenon, tourism is seen from two sides:

  1. As an economic complex, the development of which is explained more by world economic trends, processes and relationships.
  2. As the main catalyst for economic growth. In this way, tourism acts as a channel for the redistribution of gross domestic product.

In today’s world tourism:

  • It has an industrial application.
  • It acts as a service that cannot be accumulated and transported.
  • It is characterized by a high level of efficiency and a fast return on investment.
  • He is a pioneer in the economic development of new sectors.
  • It is an effective means of protecting nature and cultural heritage.
  • Accessible to practically all economic sectors and human activities.

It is known that the income from foreign tourism in developed countries is twice the income from the international trade in non-ferrous and ferrous metals.

The revenues from tourism are generated as a result of tourist expenditures, defined as the total amount of consumer income incurred by a visitor during their trip and stay at the destination.

Tourist disbursements include payment:

  • Special trips.
  • Vacation packages and tours.
  • Food and drinks.
  • Recreational, cultural and sports activities.
  • Consumer goods, which are an integral part of travel.
  • Medical care, etc.

The tourist expenses mentioned above have a direct impact on the economy, that is, the economic activity of tourism contributes to the creation of national income.

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